Re-visiting Wal-Mart Pricing

As has been talked about before, the Wal-Mart consumer, pricing etc. Well I was thinking. and here I go............

Let's say the local dis-counter, grocery etc. is selling a roll of paper towels for a dollar.

Wal-Mart opens up and gets: Governement help and sweetheart deals. Pressures their suppliers for a better deal on pricing. Brings in Tons of boatloods of imported items. Pressures the suppliers some more price breaks . Gets more government help. Has a GREAT distribution system. Practices some shady employment law practices. And they sell that $1 roll of paper towels for 83 cents. 17% less. So if Wal_mart is selling a $10,000 roof, in theory, they are selling it for $8,300

Now Grumpy (remember him?) is selling a $10,000 roof just like the local grocery guy is selling the $1 roll of paper towels. His new low-priced competition selling on volume, great deals, etc etc etc sells the same $10,000 Grumpy is selling for $7100. $1200 less than Wal-Mart even

I am not sure at all Wal-Mart has anything to do with the pricing nonsense we are talking about as contractors. Unless my supplier is giving away material perhaps

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The Roofing God Said: they`re just willing to get paid,more like an employee,than as the owner who foots all the costs of being legal,and the others skirt that stuff too in many cases-Trying to attract Grumpy here ??

I think when most folks think of Wal Marts' business model they focus on how low their prices are. They forget how profitable they are.

The problem with the roofing business is that there will always be contractors selling work at going out of business prices. If you want to be the Low Price King, your reign will be short lived.>>>

O.K. Does this formula work for anyone else?

Came from one of those certified accountants.

Take your labor price Take your material price = Your Direct Price of the Job You then times that by 1.667 and you get your true Gross Profit of 40%.

Then I heard this same thing at the CertainTeed PRAC meeting last month. Hmmm Lowballers, if you use this formula, you will have more money in your pocket...>>>

Mebey, that is in most cases the truth>>>

"Women are so much better at financial planning than men. So get over it "

That's kind of reverse discrimination isn't it?

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This one for you : Your cheatin' heart will make you weep You'll cry and cry and try to sleep But slee-eep won't come the whole night through Your cheatin' heart will tell on you

When tears come down like fallin' rain You'll toss around and call my name cisk ciak ciak You'll wa-alk the floor the way I do Your cheatin' heart will tell on you

Your chea-eatin' heart will pine some day And crave the love you threw away The ti-ime will come when you'll be blue Your cheatin' heart will tell on you

When tears come down like fallin' rain You'll toss around and call my name ciak ciak ciak You'll wa-alk the floor the way I do Your cheatin' heart will tell on you :( :side: :silly: :side: :woohoo: :blush: :S One more thing , twill was a single guy living at home with his father and working in the family business. When he found out he was going to inherit a fortune when his sickly father died, he decided he needed a wife with which to share his fortune. One evening at an investment meeting he spotted the most beautiful woman he had ever seen. Her natural beauty took his breath away. "I may look like just an ordinary man," he said to her, but in just a few years, my father will die, and I'll inherit $200 million." Impressed, the woman obtained his business card and three days later, she became his stepmother. Women are so much better at financial planning than men. So get over it >>>

"Kind of a strange mixture of cheapness and greed." Yes that is what goes in. What comes out is.............cheating. Ask CHUCK>>>

A free economy gives everyone the right to make as much or as little as they want. Why any one would want to work for peanuts is a mystery to me. I really think it is a mental block that a lot of these guys refuse to face. They believe they are right. They believe that they can't sell work for a better price. They believe that you can't run a legal business.

Remember the old saying: Whether you believe you can do something or cannot do something- You're right!

The resemblance that I see between WalMart and cheap contractors is that each of them want everything cheap. Prices, wages and customers. Use cheap foreign products or labor as much as possible.

It's just part of the ongoing trend to sell out our own country practised by all big business and government. At least that's how I see it. Kind of a strange mixture of cheapness and greed.>>>

Well here in Ottawa,-Canada- there are 2 roofing companies that low ball the whole industry and there setting the tone, when i'm giving an estimate to -Joe Blow- they say well So and So is $2,500 cheaper how/s that? Now i have to start a speech that lasts for about an 1/2 hour..These two companies are a thorn in my azz...>>>

that's kind of my point Gerry. I don't see where Wal-Mart should be drug into this kind of stupidity. They do know what they are doing, and if they did not, they'd be a whole bunch cheaper>>>

I'm not sure it's so much WalMarts doing as it is someone looking to get work but not knowing or caring enough to find out what they need to charge. They work for wages and then complain that they are always broke, get behind on their material bills and dig a hole that they often never get out of. I know more than one guy that would be out of business if not for the wifes job and her insurance through her job.>>>

One of the first places we try to set up in with the Magic Bus. Wal Mart. Why . People of the local community have such a connection to WaL Mart . When Wal Mart is open it brings a real sense of calm to the local . After a catastrophe . Wal Mart has done a great job of marketing . They deliver tangibles not service . The people that work there are friendly they are just pushing goods mostly. They know how to get this accomplished . I don't know if they would preform as well in the service sector. I think if they did LOOK OUT it would be a massacre.I'm up in Kentucky right now working the ice storm Parked in a Wal Mart. Owensboro KY Stop by if anybody is in the area.>>>

they`re just willing to get paid,more like an employee,than as the owner who foots all the costs of being legal,and the others skirt that stuff too in many cases-Trying to attract Grumpy here ??>>>