In talking with people who would like to sell their products to Wal-Mart, I have seen 3 misunderstandings people have about doing business with Wal-Mart that keep them from even trying.
Myth # 1:
You Have To Be a Big Company To Sell To Wal-Mart
Wal-Mart has 61,000 United States suppliers and thousands more international suppliers, so they can’t all be large companies. Small companies still need to meet their vendor requirements, but if you are applying under their “store of the community” program, you can start by supplying only a few stores and don’t have to meet the same financial requirements as a national vendor.
Myth # 2:
Wal-Mart Will Beat You Down On Price So Much You Will Not Be Able To Make Any Money
It’s true that some suppliers don’t make any money, but those are the suppliers who are selling a commodity and whose products are identical to their competitors so it all comes down to price. In that situation, the lowest cost producer may be the only one to make money. None of my products were commodities and because they were all unique and different so I was able to make good profits dealing with Wal-Mart.
Myth # 3:
Wal-Mart Doesn’t Pay On Time And Will Make You Wait 6 Months To Get Paid
As long as you follow their procedures, you’ll get paid on time. The last time I dealt with them, I offered them an extra discount if they paid in 10 days and they took the discount and always paid on time. When you get set up as a vendor, your pricing and payment terms will be part of your agreement and they will honor those terms. My opinion is that they are one of the most ethical retailers I have ever done business with.