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what would happen if walmart's prices were lower?
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ayumi-san
I doubt that Walmart's prices can get much lower. Walmart can sell for low prices by using a very efficient distribution process and selling a high volume of items. If they charged less, they couldn't pay employees sufficient wages or make an attractive profit for its investors.
I suppose that Sam's Club is the version of Walmart that sells at lower prices (by selling in bulk). Also, I suppose that Walmart could open a chain of dollar stores -- or have a dollar section in its regular stores -- with only items that cost the company less than a dollar.
They would be making no profit, since there prices are as low as they can make them while being able to turn a profit. I dont think it is possible to lower their prices without suffering a loss.
I dont think they could get much lower either. They already have the lowest prices out there on almost every type of product. I'd imagine they could possibly raise prices and still be lower than nearly every other business.
They would make less profit.
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