Something Wal-Mart comes this way

Today, I shopped at WalMart. I have to say it again to convince myself. . . Today, I shopped at WalMart. As long as I tried to stay away, I couldn't. Their low low prices and convenience got the best of me.

The reason why I dread going to WalMart so much is not because their warehouses are located in China or because I can never seem to get through a checkout line in under 15 minutes; moreover, it is because WalMart treats their employees terribly and is driving a lot of small business out of the market. I recently watched a documentary that showed a WalMart manager teaching an employee how to file for Welfare. He was doing this because pressure from administrators forced him to encourage employees to apply for Welfare so that their wages could be held low. That is pretty screwed up. I love Adam Smith as much as the next guy and I believe that the minimum wage is a price floor that may be unfair to some employers. However, what I saw in this case is crossing the line. There are things that corporations just can't do and that, in my opinion, is one of them.

So, I did go to WalMart today. Over the past few hours I have come up with a few excueses why:

1) WalMart is operating under all established business laws and regulations. Sure, they are doing some pretty shady stuff, but it is all legal. I think if enough people had a problem with what WalMart is doing (they should) then they would pressure their representatives to make "anti Sam Walton" legislation

2) Small businesses and start-up retailers are not adapting. The greatest asset to a small company is its ability to change and adapt rapidly. Small businesses can fill a niche that WalMart cannot and still be profitable. There are many things that WalMart does badly - not offering premium products, excellent service, and personability to name a few- thus allowing a small business to take care of these societal needs.

3) A lot of people need WalMart, including me. Being a college student, I don't have a lot of money. I can go to walmart and get what I need while paying at least $20 less than I would have paid at Wegmans or McLanahan's and $10 less than I would have paid at Giant or Weiss. That is money that I can keep and spend on other necessities.

Yeah, I went to WalMart today. And I am finally ok with it.

Those Credit Companies

I just finished my reading assignment for BA-250 (Small Business Management) and a few of the facts regarding American credit card spending jumped out at me. According to the text, Essentials of Entrepreneurship and Small Business Management by Thomas W. Zimmerer and Norman M. Scarborough (2008), "[customers] now make 30 percent of personal consumption expenditures with credit cards." Now this is a fact that I can identify with and I would guess that my percentage is much higher. Nearly all of my daily expenses are charged to my credit card account. Heck, even my monthly rent bill is put on my credit card. One reason I do this is because I receive a cash back reward for all purchases of at least 1% (3% on gas and groceries). I figure it is the only way I will ever get a discount on my rent (even if it is only 4.55).

While the 30% statistic really didn't suprise me, one that did was the fact that the average interchange fees for Visa and MasterCard transactions "will increase from 1.75 percent to 1.86 percent in 2010." Now I know why I can get 1% cash back fee for any purchase I make. It's because Visa and MasterCard are still getting .75% to .86% of that purchase I just made. And with annual credit card charges of more than $2.2 trillion a year in the U.S. alone, the credit card companies are getting at least 1.75% of that or $38.5 billion dollars!

We're Going Dancing

If you didn't hear/read/see already, my beloved Nittany Lions Men's Basketball team beat the No. 9 ranked Michigan State Spartans on the road last weekend. I had to emphasize on the road in that last sentence being as it was the first time that the second most popular team at Penn State won a game in sixteen tries when playing in East Lansing, MI. Sixteen tries! I guess that seventeenth try was a charm as Taylor Battle went off for 29 points. I'm excited about this team. That sentiment is also something that scares me. Every time I get excited about PSU basketball, I inevitably find myself disappointed. In my first three years at Penn State, I have made it a point to see at least 5 home games a season at the BJC. For my Freshman through Junior years, the basketball team is a combined 2-13 in the games I attended. Maybe I should just stay away while they are on a roll?

On a side note, I thought about making this post about the Steelers Super Bowl XLIII victory yesterday; however, I feel like Penn State becoming nationally relevant once again is a little more intriguing for the Penn State community in general.

Go Stillers. Six Pack.

B.K.