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| *Ostroff, Fair and Company>>>Corporations |
What factors (labor unions, gov't decisions, and various costs) affect the current price and suppy of Walmart? |
What factors (labor unions, gov't decisions, and various costs) affect the current price and suppy of Walmart? Many, many things will of course affect the price and supply at Wal Mart. One major thing though that affects the prices at Wal Mart is the size of their orders. When a company like Wal Mart decides they want a product, instead of saying "we want 10,000 of these", they will say "we want 1,000,000 of these, and we want them at a cheaper price".. Of course, the manufacturer, realizing that if they sell 10,000 at one price or 1,000,000 at a lower price, they will still make far more money selling the million, will be willing to drop their price.. That way, Wal Mart is able to offer items at a discount because they were able to negotiate a better price in the first place. There are, of course, many different things to that will affect the prices.. If they have to pay more in health care costs for employees, for example, they would have to raise prices to do so.. If they purchase products from a place like China where wages, etc are lower, then they're going to be able to get items cheaper than if they were made in the USA.. and so prices will be lower.. You mention unions, gov't etc.. Of course those will affect things as well.. If you have a union in a store insisting that employees are paid more, prices will have to go up to compensate for that.. Gov't decisions.. such as adding duties/tariffs to items from other countries.. is going to add to prices.. etc. Lastly, various costs, such as rental of buildings, utility prices (power, gas, etc).. costs of shipping (which will involve gas prices, etc).. will all affect the prices as well. Those are just some examples of course :) Prices at Walmart are determined by bulk buying. Unions mat have a minor impact but probably not. Furthermore, the only government decisions affecting Wal Mart at the present time include taxes. Their prices are primarily low because of bulk buying agreements. Your not to clear with both questions you asked. Do you mean the current price and supply of Walmart stock as in the securities stock market or whats sold at Walmart? Ask again and I'll try to help. Thanks. |
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