Quote:
Originally Posted by aceventura3
Sorry for continuing to show Rubber Maid may have had issues other than Walmart, but here is an excerpt for a Business Week article in 2003 on the merger.
http://www.businessweek.com/magazine...4137_mz026.htm
These companies generated $262 million in net profit on $7.7 billion in sales. The company invested heavily in the Rubber Maid brand and the article suggests that Newell overpaid for the company. Rubber maid was a company on the decline before and after Walmart.
These facts suggest that Rubber Maid was complacent. A big fat happy corporation taking things for granted. As Jim Cramer says - "...pigs get slaughtered"
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Ummmmm have you listened to a word I said?
You focus everything on this merger. Cool, but around 20 years ago, Rubbermaid was one of the hottest companies, and was consistently voted as one of the best places to work. It made sure the community around it thrived.
Then about 10 years ago, Rubbermaid still enjoying it's reputation and position (NEVER ONCE HAVING HAD A LAYOFF OR SHOWN A LOSING QUARTER), Wal*Mart decides people who are paying the money and there was no decline in sales, are paying too much for Rubbermaid. That Rubbermaid is overcharging. So Wal*Mart decided to SET THE PRICE and told Rubbermaid to take it or leave it. Rubbermaid could not sell their product for a loss and was pulled. Until Rubbermaid was bought a few years later by Newell.
Sooooo while you focus on this merger and blah blah blah..... you miss the most important part.
SINCE WHEN DOES A COMPANY SET THE PRICE IT WILL PAY A SUPPLIER, ESPECIALLY ON A PRODUCT THAT SELLS VERY WELL AND THE PRICE DROP ISN'T NEEDED?
Now if Wal*Mart had shown they weren't selling any Rubbermaid or Li'l Tikes that would be one thing. Then I could see a need for maybe negotiating a price drop. BUT Rubbermaid was fucking selling and doing a damned good business, when Wal*Mart said, "lower your prices to an unsustainable level or be pulled."
Wal*Mart knew WTF they were doing because they bought a nice piece of Sterilite at the time and started pushing......... Sterilite, which is an inferior quality, the market knew this and didn't buy Sterilite,the market was still buying Rubbermaid.
So where's the loyalty to the worker, to the company that you had no problem selling to begin with?
Now, you talk to me about Capitalism and letting the market set the price and blah blah blah..... but then you defend this type of business practice? The market had set the price and the product was moving, very well. The community, the worker and Rubbermaid were doing extremely well and Wal*Mart set out to destroy that. And they did.
Now Rubbermaid pretty much produces everything in Mexico and overseas, the workers are trying to find wages that will pay them enough to pay the mortgages and car payments, the community lost tax revenue and a community that was thriving has been destroyed. And those workers now, that could shop at higher end stores now have to shop at lower end stores like ........ Wal*Mart.
I wonder how many other businesses have suffered similar fates because of Wal*Mart's business practices.
On a side note, I have stated before my dad does the contract work building Wal*Marts. I can tell you this right now, to say Wal*Mart keeps the contractors in business, is a joke. They pay bare minimum to the contractors, making sure union contractors don't get in, and that the contractors make very little on the construction. And the people my dad bid against, are Mexican construction companies, or companies that are known to hire illegals and thus do not have to have worker's comp, pay payroll taxes etc.
So again, companies that benefit America are getting shafted.
I only hope and pray people start seeing this, are told this and decide to boycott Wal*Mart...... ah but there is the rub, if people aren't making any money, they have no way to shop other places do they?