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[QUOTE]Originally posted by Hobbes: [QB] I don't know if this has been discussed in the past. I was watching an episode of South Park in which a Wal Mart opens up in town. Of course everyone shops there and all the local stores run out of business because they can't compete with Walmart's prices. I was talking to some one with their own business they say the reason Walmart offers low prices is because they screw over the vendor. Basically they'll go to a vendor and make a contract for 100,000 doodads at 50 cents per 1,000 doodads. But the contract allows Walmart to change the price. So the vendor makes 100,000 doodads then Walmart says they've changed their price to 25 cents per 1,000. So now the vendor is screwed over and since Walmart paid less for the doodads than other companies, they charge less which makes customers go to Walmart instead of other stores. As for Microsoft, Bill Gates has gone to court for violating anti-trust laws and preventing competition. I don't completely agree with it, there are other choices for computer software and operating systems. Not that I'm defending MS either. But my question is, how can Walmart get away with essentially the same thing and while the government shits all over MS? Once Walmart invades a small town it pretty much kills all the local shops thus preventing competition until it gets to the point where you have almost no choice but to shop at Walmart. [/QB][/QUOTE]
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