In May, I wrote about the decision by the major laundry detergent manufacturers to switch to selling more concentrated product: You would need less fluid per load, and therefore the bottles could be smaller and less heavy without sacrificing quality.
Now Wal-Mart Stores, Inc. (NYSE: WMT) is saying it will begin stocking the more concentrated products exclusively in an effort to conserve water, packaging and, of course, shelf-space. According (subscription required) to The Wall Street Journal, the original move by the manufacturers to switch to concentrated detergent was spurred by Wal-Mart, so it should come as no surprise that Wal-Mart will be making this move.
Wal-Mart will be launching an ad campaign to convince consumers that the concentrated product is just as good, but I have a better idea for how they could woo consumers -- the same question I asked back in May: Given all the cost savings associated with the smaller bottles, couldn't they pass some of it on to the consumer too?
As the champion of low prices, I hope Wal-Mart will make detergent cheaper for us.
Wal-Mart (WMT) switches to concentrated detergent
Posted Sep 26th 2007 6:58PM by Zac Bissonnette
Filed under: Consumer experience, Wal-Mart (WMT)
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Reader Comments (Page 1 of 1)
9-26-2007 @ 7:54PM
roudy11z said...
I feel certain that Lee (Wennie Fuzz) Scott and Rob Walton will make sure WMT passes the savings on to the customer rather than into their already full personel pockets.HA!,HA!
9-26-2007 @ 9:24PM
Brockage said...
When Wal-Mart gets a special discount from a supplier, it goes right to the aisle price. When my local supermarket gets a special discount, the price remains the same and the stockholders get the benefit. I prefer the Wal-Mart approach.
9-27-2007 @ 2:09AM
Tracy said...
Who cares about the price of laundry detergent? I don't "pinch pennies" or even look at prices when I shop. Worrying about a cost of a $6 or $7 bottle for a bottle of laundry soap is trivial and stupid.
10-19-2007 @ 10:51AM
Ana said...
Your comment sounds logical, but we have to consider that the formulation will not be the same, therefore there will be the need to invest in reformulating all those detergents, and that represents a huge cost for the producer.
Also the new smaller packaging will have to be designed and relabeled. All those are costs that affect the production costs immediatly.
The one who will get the biggest benefit of all these, is the environment (and Wal-Mart), and if the environment improves or at least is preserved as it is now, we are the receptors of the final benefit.
10-22-2007 @ 8:14PM
pat said...
Sam would turn over in his grave if he knew everything in his store was made from china,and his company was supporting a communist country.
what is it 5 percent of american goods in the stores. They have had a significant play in our trade deficet. And now they want to be banks??? Are they trying to seek world domination or something.