The Man Who Said No to Wal-Mart
http://www.fastcompany.com/node/54763/print
http://www.fastcompany.com/node/54763/print fastcompany fastcompanyfastcompany NotoWal-Mart
""As I look at the three years Snapper has been with you," he told the vice president, "every year the price has come down. Every year the content of the product has gone up. We're at a position where, first, it's still priced where it doesn't meet the needs of your clientele. For Wal-Mart, it's still too high-priced. I think you'd agree with that. Now, at the price I'm selling to you today, I'm not making any money on it. And if we do what you want next year, I'll lose money. I could do that and not go out of business. But we have this independent-dealer channel. And 80% of our business is over here with them. And I can't put them at a competitive disadvantage. If I do that, I lose everything. So this just isn't a compatible fit."" A repost of an article doing the rounds a few months ago. Not saying nothing about Kindle.
There are a lot of parallels to Web design here.
"Wier traveled to Bentonville with a firm grasp of the values of Snapper, the dynamics of the lawn-mower business, the needs of the dealers, the needs of the Snapper customer, and the needs of the Wal-Mart customer. He was not dazzled by the tens of millions of dollars' worth of lawn mowers Wal-Mart was already selling for Snapper; he was not deluded about his ability to beat Wal-Mart at its own game, to somehow resist the price pressure. He was not imagining that he could take the sales now and figure out the profits later."
Jim Wier, the CEO of Snapper Mowers, flies to Wal-mart headquarters to tell them he no longer wants to offer Snapper mowers in their stores.