ECONOMICS 101 IN THE DES MOINES REGISTER

There’s an article today in the business section of the Des Moines Register that caught my attention because it involves Wal-Mart. Wal-Mart is taking some heat among the elitist goofs who consider themselves experts on marketing and retailing. For them, it’s unfair that Wal-Mart is even allowed to operate in their towns. And whenever one is proposed, shopkeepers shout their outrage and wring their hands over the prospects of their business in the face of the dreaded “always low prices…always” reputation Wal-Mart has.

The latest involves a businessman in West Des Moines.

“…Ron Choate is exercising his First Amendment right, one wrist at a time. Choate, who recently opened a small antique and tag-sale business called A House Full in the West Des Moines area, is taking aim at Wal-Mart Stores Inc. He is selling silicone bracelets embossed with the message ‘Boycott Wal-Mart’…”

The bracelets are his way of protesting the store he feels ran him out of business.

“…’Wal-Mart is hurting small business,’ he said. ‘Wal-Mart is ruining America.’…Choate blames the discount retailer in part for the demise of his previous Valley Junction gift specialty shop called A Small World. Plummeting sales forced him to close the shop and file for bankruptcy in March…”

But of course, he’s not giving them away…you have to pay to hear him express his first amendment rights. Radio is still free, of course.

“…Choate has sold 240 of the bracelets - each for $2.50 - since he began selling them two weeks ago. He had 25,000 bracelets made and put into packages with the message ‘Wal-Mart has beaten small town America black and blue…’People have been buying four or five apiece’…”

Well…maybe I’ve discovered how and why he went out of business. He ordered 25-thousand of them? And he’s only sold 240 in two weeks? This dude needs some serious training (government provided, of course) in inventory control. At the rate he’s selling them…even 4 or 5 apiece, he’d need to keep them on the shelves (and stay in business) for 4 years!

(Greg math note: 240 divided by 2 = 120 each week…then divide 25,000 by 120 = 208 weeks he’d need to keep the pace…then divide by 52 because there are 52-weeks in a year).

And that’s not all. He complains Wal-Mart undercut him on one particular item and forced him out of business.

“…Choate contends Wal-Mart undersold him on several items that both stores sold. He cited some Pez dispenser key chains that he bought wholesale for $1.75 each and sold for $3.50. Wal-Mart was offering the same key chains for $1.79 each…”

Again, he should probably get some re-training on pricing structure. A Pez-dispenser for $3.50?!! In fact, he’s just advertised to me how much he marks up items and I’ll make sure to avoid his store! How stupid can this guy be? It makes me wonder what he’s charging for a big ticket item like…oh, idunno…wind chimes.

On the other hand, he does have excellent sales and marketing skills. He sold this crappy story to the boobs at the Des Moines Register to put in their “business” section.

The name of his store in Des Moines is called A House Full. Make sure you avoid it out of fear of your pocketbook...cause frankly, the guy's full of it.