Wal-Mart recently provided an example of how you can obtain a better deal by making your counterpart’s less attractive alternative, or Plan B, a reality. According to a recent CNNMoney.com article, Wal-Mart recently removed Arm & Hammer liquid laundry detergent from stores but brought it back after Arm & Hammer agreed to boost its advertising for the product at Wal-Mart.
Similarly, Wal-Mart recently removed Hefty-branded storage bags from shelves but reversed its decision after Hefty’s parent-company, Pactiv Corp, agreed to make Wal-Mart’s Great Value brand bags, which sell alongside the Hefty bags.
Here, Wal-Mart made Arm & Hammer’s and Pactiv Corp’s less attractive Plan Bs, to not sell their respective products in Wal-Mart, the world’s largest retailer, a reality. Soon thereafter, Wal-Mart obtained its sought-after concessions.