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pan6467 · 09-27-2006, 08:34 AM

Actually, because of what Wal*Mart did, Rubbermaid ended up having to sell to Newell in 1999, cut jobs in Wooster and Ashland Ohio and move their factories to cheaper labor (mostly overseas and to Mexico).

The problem with Wal*Mart and the business practice is that even at the higher price, RubberMaid was outselling Sterilite and it wasn't even close. The market supported RubberMaid's prices and thus the wages and benefits they paid.

But when Wal*Mart pulls your product off the shelf because they decided to lower your price to where you could not afford it, it's a hit.

When Rubbermaid shows retailers a new color (cool blue) and tells them in 6 months it will be out, and then Wal*Mart pulls your product leaving only your competitor (partly owned by Wal*Mart) Sterilite as the only source of that type of product in Wal*Mart, and they come out with the color in 4 months.... there are serious issues there.

When a non unionized company that had one of the best employee relationships in the country, never a layoff, is forced to sell and change it's labor practices not because the market couldn't support their price, but because the company that sold 20% of your product decides you need to cut your prices so that you lose money...... there are serious issues that need to be looked at.

This was 1 company, how many others had that problem with Wal*Mart but did as they had to and thus cut labor costs. Rubbermaid was a great example and Wal*Mart I'm sure used that example to scare and control other companies.

09-27-2006, 08:34 AM	#55 (permalink)
pan6467 Lennonite Priest Location: Mansfield, Ohio USA	Actually, because of what WalMart did, Rubbermaid ended up having to sell to Newell in 1999, cut jobs in Wooster and Ashland Ohio and move their factories to cheaper labor (mostly overseas and to Mexico). The problem with WalMart and the business practice is that even at the higher price, RubberMaid was outselling Sterilite and it wasn't even close. The market supported RubberMaid's prices and thus the wages and benefits they paid. But when WalMart pulls your product off the shelf because they decided to lower your price to where you could not afford it, it's a hit. When Rubbermaid shows retailers a new color (cool blue) and tells them in 6 months it will be out, and then WalMart pulls your product leaving only your competitor (partly owned by WalMart) Sterilite as the only source of that type of product in WalMart, and they come out with the color in 4 months.... there are serious issues there. When a non unionized company that had one of the best employee relationships in the country, never a layoff, is forced to sell and change it's labor practices not because the market couldn't support their price, but because the company that sold 20% of your product decides you need to cut your prices so that you lose money...... there are serious issues that need to be looked at. This was 1 company, how many others had that problem with WalMart but did as they had to and thus cut labor costs. Rubbermaid was a great example and WalMart I'm sure used that example to scare and control other companies. __________________ I just love people who use the excuse "I use/do this because I LOVE the feeling/joy/happiness it brings me" and expect you to be ok with that as you watch them destroy their life blindly following. My response is, "I like to put forks in an eletrical socket, just LOVE that feeling, can't ever get enough of it, so will you let me put this copper fork in that electric socket?"