Yerf dog was made in America. The company for which I don't remember also made the American Flyer wagons most of us older members had when we were kids. This is how it was told to me.Once the contract was signed with Wal-Mart Corp to supply the buggies they made large capital improvements to their Mississippi factory in order to supply the greater number of buggies. About a year or so later Wal-Mart Corp mandated that they bring the price of the buggy down with promise of increasing the orders. Since Yerf was extended on their credit line due to capital improvements so as to supply Wal-Mart Corp, they contracted with a factory in China to completely build the buggy for a much cheaper price. When Wal-Mart Corp started having problems with returned buggies due to ball joint and axle breakage they refused payment to Yerf dog for the remaining buggies ordered. This is how I was told it worked. Yerf dog through a line of credit would secure the 50% to have the buggies made with the remaining 50% due when they reached customs, at this point Wal-Mart Corp would pay Yerf the 50% needed to get them out of customs and into their stores with the other half paid to yerf as the buggies sold. All warranty was covered by yerf dog and if a buggy was returned for any reason to Sam's it would be shipped back to yerf at their expense and that buggy would be deducted from Sam's balance. When so many of the cheaper made buggies started coming back with broken ball joints and rear axles Wal-Mart fired Yerf leaving them with all the buggies they had in stock for they returned them as well as the many containers already on their way to customs Wal Mart Corp refused acceptance. Since they were already too extended on credit the Banks put them into chapter 7 and liquidated the company. Wal-Mart Corp is well known for these practices which is why most all the American companies if they wanted to keep the Wal-Mart account would move factories and jobs to China. As one CEO once told me in business class " Wal-Mart is like cocaine for when they first sign you the feeling is great for you make more money than you can imagine but once you are hooked on them they than basically dictate price to you. I forget what State it was but Rubbermaid went through the same thing except their new supersized factory built to handle Wal-Mart Corp orders was built with taxpayer money with the promise of creating many more jobs. Then Wal-Mart Corp starts to dictate what price they are willing to pay and Rubbermaid had done the only thing they could do which was to stick the taxpayers and move their operation to China. Yerf did not have that option.
|