In the recent few weeks, there has been a lot of trips to Sam’s Club, the wholesale club for Walmart. Yes, it’s the holidays, and you have to get packages of this, that or the other thing.
But the low prices that Walmart provides for its consumers through such bulk items got me to thinking about new strategic ways to make even more money in cutting costs for the corporation.
So crazy thought. Time is money, right? So when you think about the cost of bulk items that sit in storage and warehouses and refrigeration, then you can calculate the amount of expense that it takes to bring those items from manufacturer to consumer and the middleman’s cost (in this case, Walmart). So what if they decided to do a pull up service? You pay by credit card ahead of time, and have all of the bulk items scheduled for pick-up at a certain day/time and it’s sitting at the dock for you ready to go? This would mean the corporation would have to take less time in storage, and thus cut their costs. In return, you save your time instead of trucking around the warehouse in your little cart. Everyone wins.
What’s even better about this is because, if the consumers can choose their products and pay for it ahead of time, then Walmart has better leverage with manufacturers. They can go to them and say… “We have this many customers that are ready to pay this amount of money for your goods, so give us this price.” While this is already done, this also allows them to delve into more brands of products in bulk instead of what they currently stock and providing more range of items.
It might sound silly, but believe me. Months before Costco put in their current car washes, I had wondered why these bulk warehouses couldn’t have done a nice car wash if they basically provide their customers with whatever they stock (and they stock the fluids for a car wash).
In an age where large corporations are slowing down in figuring out ways to grow, this might be something that a mature company like Walmart could actually pull off.
Just a thought.