"A large majority of companies that pitch Walmart get rejected not because their product isn't the right fit, but because they're not financially or operationally ready. Walmart expects you to support large purchase orders, extended payment terms, and ongoing replenishment. If your cost of goods, freight, and trade spend are not dialed in before that first PO lands, even a "successful" launch can bleed your cash."
"Pressure to price too low Walmart is driven by its promise of everyday low prices. That promise means your product must be price competitive. And while it might seem logical to start with deep-discount programs to get you "on shelf," you might be setting unsustainably low prices that erode your price positioning. If you start at rock-bottom pricing in the biggest retailer on the planet, where do you go from there? How do you convince other channels to accept higher price points later? You don't."
Landing Walmart can transform a business with a single purchase order, but it creates high-stakes operational and financial demands. Many suppliers lack sufficient working capital and cash flow to support large POs, extended payment terms, and ongoing replenishment, and invoice deductions and fines can quickly erode margins. Walmart's automated supply chain requires flawless barcodes, labels, pallet configurations, and EDI data to avoid penalties and payment delays. Walmart's everyday-low-price model pressures suppliers toward deep discounts that can permanently erode price positioning and make higher prices in other channels untenable. Building brand strength and operational readiness before pursuing Walmart reduces these risks.
Read at Inc
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