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The Water Cooler
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Walmart Work Release?
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<blockquote data-quote="vvvvvvv" data-source="post: 1344768" data-attributes="member: 5151"><p>I always laughed when Coca-Cola or PepsiCo would threaten to pull their product. When more 50% of your revenues comes from a single retailer, anyone with half a brain knows when you're bluffing.</p><p></p><p>That said, most of the tires you buy at Wal-Mart can only be warrantied through Wal-Mart. They are manufactured to a lower specification just so that they can be sold at a lower price point, and dropping the warranties from the tire manufacturers was part of the negotiation. The TLE is a very profitable door for Wal-Mart. The average shopping cart of a TLE customer is worth quite a bit more than the average shopping cart of a regular customer. When certain manufacturers threatened to walk away from the lower specs, Wal-Mart had to make concessions to keep them around.</p></blockquote><p></p>
[QUOTE="vvvvvvv, post: 1344768, member: 5151"] I always laughed when Coca-Cola or PepsiCo would threaten to pull their product. When more 50% of your revenues comes from a single retailer, anyone with half a brain knows when you're bluffing. That said, most of the tires you buy at Wal-Mart can only be warrantied through Wal-Mart. They are manufactured to a lower specification just so that they can be sold at a lower price point, and dropping the warranties from the tire manufacturers was part of the negotiation. The TLE is a very profitable door for Wal-Mart. The average shopping cart of a TLE customer is worth quite a bit more than the average shopping cart of a regular customer. When certain manufacturers threatened to walk away from the lower specs, Wal-Mart had to make concessions to keep them around. [/QUOTE]
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