Cheap Prices The Hidden Consequences Essay - 643 Words

Superficially, one cannot imagine how cheap prices could ever do any wrong. The customer gets to save plenty of money, and the store gains more profit from new customers searching for a good deal. Even though this may be the common notion, most people cannot see the damage being done to companies around the globe. Countless numbers of businesses have been forced to bankruptcy because of the demand of big chain companies, such as Wal-Mart, forcing them to cut their prices. Because big chain companies that sell low prices, like Wal-Mart, cause business to file bankruptcy, lower their prices to unprofitable lows, and outsource their jobs overseas cheap prices can easily have harsh consequences. The harshest consequence low prices cause is†¦show more content†¦Three years later, Lovable closed (Fishman). This only one example of how Wal-Mart puts pressure on companies to sell their items at a low cost, even if that means a decreasing profit. To try and avoid the pressure of bank ruptcy, many businesses are forced to send their companies overseas where lower wages temporize their decreasing profit. Business with Wal-Mart, for example caused Levi Strauss to close down their last two factories in the United States. Twenty-two years prior, Levi had 60 factories and was considered one the most socially responsible corporations on the planet (Fishman). Today, Levi has outsourced all of their factories, and imports all of their clothing (Fishman). Although Wal-Mart does not directly force companies to outsource their factories, they have a great influence when they demand lower prices for the products they purchase. Business must result to outsourcing jobs when Wal-Mart puts increasing mandates on companies to continue to lower their already low prices. For example, Wal-Mart started selling Vlasic pickles in a gallon jar for fewer than three dollars, which was unheard of in a regular grocery store (Fishman). To the eye, what’s wrong with getting more produ ct for less money? Realistically, Vlasic was only making a cent or two for every jar. As the popularity of the jar increased, a higher demand was being placed on Vlasic to supply more and more pickles.Show MoreRelatedGarbage Picker Essay1065 Words   |  5 Pagesimportant for them to sanitize all the items multiple times. When garbage picking at a thrift shop, these pickers must keep an open mind for all items. Garbage pickers should explore every isle of the thrift shop, because they never know what may be hidden throughout. When a garbage picker goes through items with a â€Å"For Free† sign, they should look for things they might need down the road or that they can resell to make a profit. The items that they label as unusable, should not be taken. 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