> --- In [email protected], [EMAIL PROTECTED] wrote:
>>
>> reduces the price making it available 4 more of us to buy & more of
> it as
>> well that whole milk & @ Wal-mart great news for many of us. now
> if Wal- mart
>> could sell Maharishi Ayer Vedic products as well.
>>
>
> The problem there is that Wal-Mart actively negotiates their costs
> with suppliers DOWN every year. As I understand it, Wal-Mart attempts
> to get their suppliers to bring their prices on supplies to them down
> by about 5% every year, which they then pass on to consumers. Many
> economists have said that Wal-Mart's policy in this area is almost
> singularly responsible for the very low inflation rate in the USA over
> the past 15 years.
>
> Negotiating with the TMO over prices? Can you imagine being a fly on
> the wall over those negotiations?
>
>
> Wal-Mart: "TMO, now that we're carrying your MAPI products in all of
> our stores throughout the world, your products are accessible to over
> 2 billion people. We'd like you to see what you can do to bring down
> the costs of your supplies...economies of scale and all that."
>
> TMO: "Sorry, Wal-Mart, we have a strict 1,500% mark-up on our MAPI
> products. For example, on our 8 oz. Vata Churna product, it costs us
> about 34 cents for the spices we put into it. Add on another 20 cents
> per unit for packaging, labor and overhead and you're talking a
> whopping 54 cents cost to us for each one. Now we sell each unit for
> $15.95. We're selling each unit to Wal-Mar for $10.00...tell us how
> we're supposed to make money if we bring our cost to you down!"
This is the way MMY used to negotiate, for instance, with hotel prices. The
hotel owner would name a price. MMY would make his offer. The hotel owner
would come down a bit, then rather than coming up a bit to eventually meet
the hotel owner in the middle, MMY would make a new offer lower than his
first one. This tactic seemed to work. Maybe the hotel owner panicked and
decided to take MMY's offer before it got any lower.
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