Walmart is given a wholesale price by Kellogg’s. Walmart’s choice is to set their markup over that wholesale price. On average, the wholesale price by Kellogg’s cereal would be $1.64 and the wholesale price for the GV would be $0.715.
It’s complicated for Walmart, because there is documented evidence of them telling suppliers what wholesale price they will _accept_, but that does not change that it is ultimately Kellogg’s wholesale price that is being met by Walmart.
It’s complicated for Walmart, because there is documented evidence of them telling suppliers what wholesale price they will _accept_, but that does not change that it is ultimately Kellogg’s wholesale price that is being met by Walmart.