Unfortunately, much of business works this way. There is always pressure on most suppliers to reduce their prices. I was in business for six years!

The trick is to do the homework beforehand. If you are dealing with Wallmart, those pressures are definitely going to be on you. So expect to play the game.

There may be different ways to play this game. I can see some suppliers accepting a Wallmart deal that is break-even. But the sales volume is high enough to get some "scale." Maybe there is another vendor where the product can be placed at higher margin.

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I usually grocery shop at Wallmart. For some strange reason, my son likes Kellogg's Corn Flakes. At Wallmart, this cereal sells for $6.00 a box! I suspect the Kellogg people knew that Wallmart had to give some shelf space to Corn Flakes. Lots of cheaper cereals surrounding Corn Flakes, but Wallmart dare not unstock this item.