Normally, a retailer pays a wholesaler or producer money to get goods, then re-sells them to end users.
Produces set the price, and retail outlets, with a markup, come up with a business strategy ot move that inventory to their customers.
Now - look at Wal-mart. They're big enough that they can go back to the producers and say "Hey, by the way, you're going to knock 1% off the price this year or we're going to drop you - and we can say that because YOU need US."
Produces set the price, and retail outlets, with a markup, come up with a business strategy ot move that inventory to their customers.
Now - look at Wal-mart. They're big enough that they can go back to the producers and say "Hey, by the way, you're going to knock 1% off the price this year or we're going to drop you - and we can say that because YOU need US."
Same deal here.