What does it take for a company to decide that selling their product through Wal-Mart’s chain might hurt their business? This excerpt of an excerpt from Fast Company might give you a clue, as a vice-president at lawnmower company Snapper explains to Wal-Mart why he can’t continue to offer his product in their stores:
“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.”
