Dear Wal-mart Executives and Major Shareholders:
I read an article today about your company, Wal-Mart, it appears you aren't doing as well as you would like. I would propose that perhaps your business model is antiquated and perhaps not well suited to the times.
I make this suggestion, because YOU seem to have forgotten, that unless YOUR core customers can actually AFFORD to shop (other than for basic necessities) THEY WON'T shop for anything else.
YOU built the business on the concept of servicing low income buyers.
Well, I have news for you, Wal-mart executives and major shareholders. when YOU pay less than a living wage AND when your customers are in debt, make minimum wage (or just above) AND can no longer afford the basics, your market share will most likely decrease.
The only reason YOU, Wal mart, has managed to thrive as long as you have, was that YOUR customer base was living on credit. Now that the credit has dried up, THEY (your customers) no longer can afford to buy most of the products you stock.
Why didn't you realize this? Why didn't it occur to those of you in management, that eventually, the well would run dry? Have none of you heard of the "Efficiency Theory of Labor"?
Seriously, most of YOU, supposedly EARNED degrees at accredited Universities and Colleges. Thus, you all should know the basics of economic theory, right? Regardless which specific theory you espouse, the basic tenets are the same, that is, UNLESS, you didn't really study, and were too busy partying while in school, and simply bought the papers necessary to receive a passing grade, and then relied on "networking" and "daddy's friends" to get your a job, you SHOULD know the basics tenets.
I mean, seriously, YOUR customer base (not to mention your employees) are those who are not well off. Didn't it occur to YOU that eventually, those who were making low wages and just scraping by, would no longer be able to afford to buy most of your products, regardless of HOW low the price was? By the way, your prices (when considering the quality of most of your products) are NOT that great...maybe a cent or two, or maybe a dollar less than your competition.
Honestly, this little game you had going, couldn't go on forever. Eventually, your prices wouldn't be low enough for you to still make a profit. Eventually, you had to realize, that your, low income customers wages, weren't going to keep up with inflation? Seriously, you all in the executive suite, had to realize that this game couldn't go on forever?
It stands to reason; IF you DON'T pay the bulk of YOUR employees a living wage AND you buy ALL your products from 3rd world countries and IMPORT them into the U.S. , while creating ample SUPPLY of cheaply made products, while demanding your suppliers CUT their prices to accommodate YOU, (BTW, did it ever occur to you, that perhaps they TOO had to reduce wages and thus, they TOO went overseas to produce products AND at the same time, laid off their employees...YOUR customers?) eventually the bulk of customers would be phased out of the market.
Perhaps, YOU didn't realize, that people have to actually have enough MONEY, to buy your low priced products. IF enough people DON'T have ENOUGH money for basic necessities of life (you know...food, shelter, utilities) those hordes of people ARE NOT going to buy bedding, toys, bathroom decor, electronics, costume jewelry, bikes, gardening supplies, etc.
YOU see, I realize, that those of you in the "ivory tower" don't have to worry about paying YOUR rent, mortgage, gas bill, electric bill, transportation costs, health care AND groceries, but YOUR customers DO. Since your customers are barely eking by, perhaps YOU should recognize WHY, your customers are just barely affording the necessities.
Wages, over the last 10 years have been stagnant. The average American worker, actually LOST purchasing power of the last decade, while CEO compensation increased 500%. In addition, the AVERAGE American, relied on credit to purchase goods other than BASIC necessities. These were YOUR customers.
Perhaps, it would be a good idea, for the lot of YOU, to have lunch with your buddies at the club, you know, those at the other corporations (like the banks, and the other Wall Street favorites) and insist they do something to remedy the situation.
Most of them, are raking in a ton of money, as are you all. Maybe, if that money was trickled down, as promised (based on supply side theory) YOUR customers could still afford to buy YOUR products. Wouldn't that be in YOUR best interests to continue making money? I mean, let's face it 400 people can only buy so many bikes, TV's, etc. before THEY get bored and move on...besides which those 400 people aren't YOUR customers are they? They would NEVER be caught dead in YOUR stores...and YOU know it.
If you hope to continue doing business and making oodles of money, don't YOU think, it is necessary to maybe share the wealth a little?
Just a thought to think about.
Sincerely.
Abbyrose
