Quote Originally Posted by Mychael View Post
Quiz time! Why does walmart sell things for 10-20% less than other stores when they could break even or even a make a profit with 50-60% markdowns in many cases?

Median pricing. The market will always search for its median this according to Smith in Wealth of Nations. Walmart will sell its products for the highest profit margin it can. Walmart can still be undercut and is quite often by Target, especially when it comes to food. Targets supplier chain makes it possible for them to often get food at a cheaper price than Walmart. Other products Walmart gets for cheaper and can make a larger margin. Seriously this all pretty common sense stuff. Sell your goods for the lowest profit margin and hope you can make up the difference in volume of sales, or you can sell at a higher margin and not get the volume. You just need to read the market and make the right moves.