Cheap Prices: The Hidden Consequences

635 Words3 Pages
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 simply bankruptcy. If companies don’t comply with Wal-Mart’s demands, they lose them as buyer. Soon the platform in which they ran their business begins to attenuate. For example, Lovable used to be the sixth-largest maker of underwear and lingerie (Fishman). When they first started doing business with Wal-Mart, everything ran smoothly until Wal-Mar...
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