The Secret of WalMart,or SM on Doing Business

“Buy bulk sell at a discounted price beating competitors which leads to increased money movement equals profit.” as I may state it.

Well the principle was first tested by Sam Walton when he started his WalMart, which ended Walmart as the number retail store in US. Which was replicated by ShoeMart(SM) in the Philippines and many others in this field. Which made SM as the number one reatil store in the Philippines and garnered the top 3 biggest malls in the whole world.

Well this principle is simple.

All you have to do is buy in bulk for you to  get discounts but don’t buy your product from a middle man you will end up buying high still, as much as possible buy it direct from the manufacturers., producers, and maybe wholesalers. That way you get the discounted price and that can beat competition, decrease investment or capitalization, and assurance that you can sell your product at a bargain price.

With it your customers will be enticed to buy more primarily because they can save from buying it, even if they don’t need it since it is affordable.

And the result is increased in and out of money. Saves you from stocking the product or item. Increases your profit primarily because you don’t have to stock the product, since stocking means money that is not realized. 

You might think that you will only profit small in doing it, in reality you are profiting big. Even if you think your profit is small or in cents only, it will still end up big. Why? because if you invest $1000 and getting only $50 out of it or you sold everything in one hour and reinvest it again and profiting again $50 in ahour again then at the end of the day maybe you will get maybe 1/4 to 1/2 of your capital.

And thats the secret of Walmart and SM and other retail business. AS long as buy bulk and get discounts and you sell it low low and buy n sell is at a fast pace, you can be assured you will get big profits at the end of the day!