Walmart is a well-known and popular Retail Outlet in the USA, where consumers get goods and services at the best price possible. Due to enormous buying, Walmart can sell items at cheaper rates which ultimately benefits the consumer. But there are numerous Walmart stores. Having so many stores the prices of goods are not same in all the stores. Let’s discuss ‘Does Walmart’s Price Match other Walmarts?’.
Does Walmart’s price match other Walmarts?
Prices will be different in different stores of Walmart. It depends upon many factors and there are many reasons because of why Walmart’s price doesn’t match other Walmarts. Major factors are listed below:
- An economy where the stores are situated: The prices will depend upon the economic situation where the stores are situated. Higher-income areas will have a bit costlier prices on goods while on the other hand, low-income areas have much cheaper prices compared to higher-income areas.
- Inventory of a certain product: The prices also get affected by the overall inventory of a product. Sometimes the prices are lowered in some Walmart stores to clear out an overstock item or to compete with the local competitors.
- Price of goods when the stock was purchased by the Walmart stores: This is an important factor due to which one Walmart’s price does not match with the other Walmart. As it depends upon the supply-demand hence it is a crucial factor to consider the price of goods when a store got its supply in.
Additionally, rewarding the customers with in-store discounts can also cause the prices to lower because the discount offered for the goods in this store will be cheaper than any other Walmart store where the discount is not offered.
Hence, due to these reasons, the prices vary drastically from one Walmart to another Walmart.
Who decides different prices for items in Walmart in the same town?
Every Walmart has regional management which decides the prices of their products. So different management teams of Walmart stores take care of the prices of items in their stores. According to the economic situation and location, the prices are decided by the regional management. They take the mandatory decision of which products they want to place in their stores. Depending upon many crucial factors the management decides the prices. If major shipping costs are added to the items, then the items will be sold at a much higher price. Hence, many factors play a huge role in deciding the prices for items in Walmart.
Walmart’s ‘Market Pricing’
Walmart prices are not the same everywhere. Based on the market conditions there is different pricing at each location. So, prices are mainly dependent upon the economic conditions of the location. Competition is also one of the major factors when deciding the prices. The prices will be lowered to beat the competition.
Another important factor to consider for the pricing of items is the distance the items have to cover to reach the stores. The farther the distance the prices of the items will be. In short, if the items are difficult to get and maintain the more their prices will be.
Are Walmart prices same in all states? Why some Walmarts are cheaper than others?
The prices will be low because the stores compete with each other. There might be a contract with their manufacturers because of this some products will have the same price no matter what. Some Walmarts are cheaper than others are mainly due to the reason because they buy directly from the manufacturers or wholesalers.
With Walmart’s enormous buying powers, it purchases everything in bulk which ultimately reduces the prices of the items. Walmart buys directly from suppliers and due to this the profit margin increases as compared to competitors. Pricing of items can be affected by positioning the products in low-income or high-income areas. Due to the area, the pricing will be affected like in low-income areas prices will be cheaper as compared to high-income areas.
Conclusion
Hence, Walmarts prices differ from other Walmarts mainly due to economic factors of the area, location, the distance for the items to reach the stores. Some goods are only produced in a specific location due to which shipping charges increase of these products compared to the products locally supplied.
Frequently Asked Questions
- Why do different Walmarts in the same town have different prices for goods?
The prices vary because each Walmart store manages its inventory.
- How is Walmart able to sell products at lower prices?
Walmart can sell products at much lower prices because of its enormous buying power, cheap labor & tax advantages. By buying bulks of items the cost of those items reduces because of which Walmart sells items at cheaper rates.
- Do Walmart prices- vary by location?
Yes, based on the economic and market conditions of the location Walmart prices vary by location.
- Are online-price the same as in-store in Walmart?
Online products are cheaper but depend on the retailer.
