![](db/pages/2018/10/10/001/zimg_003_3.jpg)
Walmart buys direct from the source! By cutting down intermediaries between producer and seller, Walmart is able to pass on those intermediary mark-ups as price benefits to the consumer.
CONTRACTS: Walmart makes contracts which can be exclusive OR massive. There was an incidence when Walmart bought the entire USA's production of a particular product in anticipation of a massive demand. At that time, it was the only seller of that product! So, this kind of contracting sometimes helps Walmart to keep out competition OR to be the lowest priced seller in the market.