Ambivalence

Current mood: Ambivalent

I always hear that the best writers write about what they know and their experiences. Unfortunately, I don't think twenty-two years of living have provided me with as much knowledge or experiences has I would like. I mean, don't get me wrong, I can discuss string theory or recognize the motifs and themes from any John Steinbeck book, but to assume that I have learned an adequate amount of life lessons to decide that what I believe is "absolute truth" is actually very far-flung from the truth.

After staring at my computer screen for hours, trying to compile a sincere belief from my thoughts, I realized that I really like the word "Ambivalence". The most important decisions are not decided recklessly but happen rather as a ongoing process while balancing between both sides. I won't denounce ambivalence or pass it off as simple uncertainty. Instead, I'll use it as an advantage. Ambivalence is useful when I'm buying stuff, for instance it helps me decide if the latest new expensive gadget is truly worth the money. Unfortunately, it creates a difficult situation in class when I'm deciding which multiple choice answer is right… But in general, it has allowed me to make choices that I am proud of.

There is no trophy for the student who can figure out how they are going to live the rest of their life the quickest. The last few years or so have been a bumpy road of friends and family pressuring me to decide on a major, a career, relationships, a life for myself. I would fly through ideas like flicking through the pages of a catalogue.

So many things sounded interesting but nothing completely fit me. I became a second guesser, which led everybody to think that I was incapable of figuring anything out. Being extremely indecisive is not the best quality to have. It's not like it's a puzzle in which I couldn't piece together, it was as if I just needed more time to think about everything. Unfortunately, college procedure doesn't wait for anybody and I made a few dumb decisions. I've also made an attempt to leave myself plenty of opportunities to change my mind. I think there's no reason for you to feel stuck in a decision that you've made for yourself.

Ambivalence has taught me to acknowledge my regular change of mind. Ambivalence makes use of doubt to its advantages and forces me to really search my thoughts for what feels right. I encourage every person to acknowledge his or her ambivalent qualities. Maybe we shouldn't push the thoughts of sadness with a life decision to the back of our heads. Instead we should embrace these thoughts because they have the ability to free us and allow us to achieve what we feel is most important at the time. Ambivalence can let me live my life day by day instead of feeling stuck in the choices I make.

Sometimes something small can be huge

Current mood: hopeful

We don't always know how our actions will affect other people. We do know, however, that our actions will have some sort of an effect and, if we've made good choices, hopefully a positive one. This is a huge responsibility, but it is also a wonderful opportunity. One small, seemingly insignificant act on the part of one person can make a huge difference in the life of another. It may even save the other's life. Seriously.

Dalai Lama’s 18 rules for living

Current mood: contemplative

At the start of the new millennium the Dalai Lama apparently issued eighteen rules for living. Thought i'd post the here because I found them interesting.

1. Take into account that great love and great achievements involve great risk.
2. When you lose, don't lose the lesson.
3. Follow the three Rs:
1. Respect for self
2. Respect for others
3. Responsibility for all your actions.
4. Remember that not getting what you want is sometimes a wonderful stroke of luck.
5. Learn the rules so you know how to break them properly.
6. Don't let a little dispute injure a great friendship.
7. When you realize you've made a mistake, take immediate steps to correct it.
8. Spend some time alone every day.
9. Open your arms to change, but don't let go of your values.
10. Remember that silence is sometimes the best answer.
11. Live a good, honourable life. Then when you get older and think back, you'll be able to enjoy it a second time.
12. A loving atmosphere in your home is the foundation for your life.
13. In disagreements with loved ones, deal only with the current situation. Don't bring up the past.
14. Share your knowledge. It's a way to achieve immortality.
15. Be gentle with the earth.
16. Once a year, go someplace you've never been before.
17. Remember that the best relationship is one in which your love for each other exceeds your need for each other.
18. Judge your success by what you had to give up in order to get it.

Lifting the Lid on the Science of Persuasion

Current mood: blank

Very Interesting article I found on the web:

Cajole your boss into giving you a raise, win someone round to your point of view, or persuade your partner it's their turn to put out the trash - getting people to do what you want can be very handy. Persuasion is a key element of all human interaction, from politics to marketing to everyday dealings with friends, family and colleagues. "Persuasion is a basic form of social interaction," says Eric Knowles, emeritus professor of psychology at the University of Arkansas in Fayetteville. "It is the way we build consensus and a common purpose."

Unfortunately persuasion is both notoriously difficult to pull off and almost impossible to resist when done well. Psychologists have long been fascinated by persuasion - why some people are more persuasive than others and why some strategies work where others fail. Over the next six pages we bring together some recent insights into the science of persuasion.

For those who don't want to be persuaded, there are lessons here too. Knowing the strategies charmers and advertisers adopt can help you resist their guile.
1 Be a mimic

WHEN you're aware of it, it's one of the most infuriating behaviours imaginable. Yet mimic someone's mannerisms subtly - their head and hand movements, posture and so forth - and it can be one of the most powerful forms of persuasion. That's the conclusion of a number of recent studies.

William Maddux at the INSEAD business school in Fontainebleau, France, explored the effect of mimicry on 166 students in two role-play experiments, one involving negotiation between job candidates and recruiters, the second between buyers and sellers (Journal of Experimental Social Psychology, vol 44, p 461). In both cases, the outcome of negotiations was better for the would-be persuaders when they employed subtle mimicry. For example, in the buyer-seller experiment, 67 per cent of sellers who mimicked their target secured a sale, as opposed to 12.5 per cent of those who did not.

Another study by Robin Tanner at Duke University in Durham, North Carolina, asked students to discuss a new soft drink with sales reps (both the reps and the drink were fictitious, though the students did not know this). Half of the reps were instructed to mimic the physical and verbal behaviour of half of the students they spoke to.

These "chameleon" reps elicited more positive ratings of the drink, and volunteers they mimicked consumed more of it during the chat. "Ours is the first study to show that mimicry can essentially enhance persuasion in interpersonal interactions," says Tanner. Intriguingly, people felt especially positive about the drink and its market prospects when the mimic explicitly stated their vested interest in the success of the drink (Journal of Consumer Research, vol 34, p 754).

It is possible, though, that the reps in the "no mimicry" group subconsciously resorted to mimicry. Jeremy Bailenson and Nick Yee of Stanford University got round this by using virtual reality avatars. They asked 61 students to watch and listen to an avatar arguing that students should carry ID cards at all times - an unpopular proposal. For one group, the avatar moved in a pre-programmed human-like way. In the other, computers tracked the students' head movements, which the avatar mimicked after a 4-second delay (previous studies suggested a delay of 2 to 4 seconds works best). Students who had been mimicked were more likely to respond favourably.

But be warned, overt mimicry can backfire on the mimic, or at least be very embarrassing if detected, says Tanner. "It's far from a free shot at persuasiveness."

The crucial factors are: be subtle, leave a delay and, whatever you do, if you think there's even the slightest chance you've been rumbled, stop.
2 Look at it this way...

IF YOU want to bring people round to your point of view, try "framing", a favourite tactic of spin doctors. "Framing is about leading people to think about an issue or opinion in a way that is advantageous to you," explains George Bizer of Union College in Schenectady, New York. "For example, opponents of inheritance taxes prefer to frame them as 'death taxes'."

Framing is a key tactic in election campaigns, so Bizer wanted to see whether voters were more or less persuadable to change their views when asked to frame them in different ways.

He asked 69 undergraduates to read an article about two fictitious candidates' views and policies (one candidate, Rick, was conservative, while the other, Chris, was liberal). Half of the students had to choose between the two statements: either "I support Rick" or "I oppose Rick"; the other half chose between equivalent statements about Chris. Participants also rated their preference for both candidates on a sliding scale from "strongly support" to "strongly oppose".

They then read another article, this time arguing against the merits of their preferred candidate, and then had their opinions reassessed. Overall, people whose preference for a candidate had been expressed in terms of opposition to the other candidate were less likely to modify their opinions (Political Psychology, vol 26, p 553). "A simple change in framing - leading people to think of their evaluations in terms of whom they oppose instead of whom they support - leads to stronger, more resistant opinions," says Bizer.

These findings fit with a broad body of research suggesting that negative information frequently has a more powerful influence than positive messages. So if you want to sway someone when they choose between two options, a good tactic is to be negative about the option you don't want them to pick.
3 Less is more

IN MOST battles, outnumbering your opponent will hand you victory, and it would seem common sense that the more arguments you can call on, the more persuasive you'll be. Yet, the evidence suggests otherwise. A number of studies have revealed that the more reasons people are asked to come up with in support of an idea, the less value they ascribe to each. The result: asking people to "think of all the reasons why this is a good idea" is likely to backfire, and may serve to harden their views.

Zakary Tormala and Richard Petty of Ohio State University, working with Pablo Briñol at the Autonomous University of Madrid in Spain, demonstrated the effect in 2002. The researchers told 59 university students that there was a plan to introduce new exams into their courses - an unwelcome prospect. They then asked half the students to produce two reasons why this was a bad idea, and the other half eight reasons. On average, students who supplied just two arguments against the proposal were subsequently more opposed to the exam policy than those who gave eight.

Tormala and colleagues argue that the ease with which we can summon up thoughts affects how much confidence we place in them, and it is generally easier to think of two reasons for believing something rather than eight. This finding has some clear practical implications. "If you want to persuade people by getting them to think positively about your message, idea, product or whatever, ask them to generate just a few positive thoughts - three at most - because that's easy and they'll feel confident about their positive thoughts," says Tormala.

Conversely, next time you're in an argument, avoid the temptation to spin the "give me one good reason" line; it'll only strengthen your adversary's hand.
4 Grind them down

HUNGER is a powerful thing, but how many times have you reached for a quick snack, only to regret it when it's lying heavily in your stomach? Just as your standards for food quality can slip when your stomach is empty, so you should avoid engaging in argument or doing battle with sales people when your mental batteries are running low. Conversely, if you're trying to be persuasive, strike when your target is running low on mental energy.

Edward Burkley of Oklahoma State University in Stillwater studied the impact of cognitive exhaustion on the resistance levels of 78 students. The plan was to try to convince them to accept one month's summer holiday instead of three. Half the students came to the study fresh. But the other half first had to complete a self-control task in which they wrote down all thoughts that came into their heads while suppressing any thoughts about a white bear.

This task, Burkey argued, would use up some of their reserves of self-control. He found that the students who had performed the white bear task were less resistant to the idea of giving up two months of holiday.

Burkley also studied the flip side of this effect. He asked a different group of 72 students to rate the plan to shorten their holidays. Half were told it would be implemented within two years, making it personally relevant. The other half were told it would not be implemented for 10 years. He wanted to test the hypothesis that students presented with the two-year scenario would use up more of their mental resources, because they would be more motivated to argue against that unwelcome suggestion.

The students then had to try to complete an (unbeknown to them) unsolvable puzzle - a technique commonly used in such studies to measure how much self-control a person has. On average, students in the 10-year group persisted for more than a minute longer before giving up, suggesting they were less mentally exhausted than those in the two-year group (Personality and Social Psychology Bulletin, vol 34, p 419).

Of course, there is a form of mental exhaustion that doesn't require thought: nag them into submission. Children have got this technique sussed, says Burkley.
5 The medium is the means

IN THIS fast-paced world, we seldom have time for face-to-face meetings. You are just as likely to conduct your personal and business negotiations by email, or some other electronic medium, as you are in person. How does this impact your powers of persuasion?

The question intrigued Rosanna Guadagno of the University of Alabama and Robert Cialdini of Arizona State University, who have been comparing the persuasive power of online communication with face-to-face meetings.

In a study published in 2002, Guadagno and Cialdini had a group of students discuss the introduction of new exams (Group Dynamics: Theory, Research and Practice, vol 6, p 38). The group was split into same-sex couples. Unbeknown to the subjects, each pair included an accomplice of the experimenters whose role was to provide arguments in favour of the idea. Half the discussions took place in an online chatroom, the other half sat face-to-face.

While overall men rated the proposals similarly whether they participated in the electronic or face-to-face sessions, women in face-to-face sessions rated them more highly than those who only took part online. Guadagno and Cialdini suggest this is because groups of women tend to form communal bonds and reach agreement. Electronic communication disrupts the exchange of social cues women use to establish a communal bond and is therefore less conducive to persuasion.

On the other hand, groups of men typically try to establish their competence and independence, which can lead to competitive encounters. When two men who have not met before debate a point, online interaction is about as effective and persuasive as face-to-face.

But if they have met and had a competitive exchange, subsequent face-to-face meetings are less productive, whereas online exchanges fare far better. So while online communication can prevent women "connecting", it can help men suppress competitive urges that hamper persuasion.

So, if you're a woman and want to persuade other women you'd be better off meeting face-to-face, while men are less confrontational if contacted by email. The researchers are now studying these effects in mixed couples.
6 Style over substance

IT WAS midnight when the knock came at the door. It was "Paul", a "neighbour", who'd "just moved in". He spoke non-stop, without pause or hesitation, detailing a problem with a truck that had run out of gas and his need for $20, which he would, of course, return first thing in the morning. Later, Kurt often looked back and wondered just how it was he got taken in so easily.

"Paul" was a master of his craft: Kurt later learned that four other people on the street had also been taken in by the con.

Maybe we shouldn't be so surprised when things like this happen. Persuasion, it turns out, may have as much to do with how you say something as what you're saying. And the less time you're allowed to think about the content, the more the style of delivery matters. At least, those are the findings of two marketing professors who decided to tease style and substance apart.

John Sparks at the University of Dayton in Ohio and Charles Areni at the University of Sydney, Australia, knew from earlier work on courtroom transcripts that people equated certain kinds of speech with lack of credibility. In particular, hesitant phrases such as "I mean", "you know" and "isn't it?" reduced a speaker's power. But no one had looked at the exact relationship between style and content.

The researchers asked 118 undergraduates to read a transcript of a testimonial about a scanner. In one version, the speaker used hesitations like "I mean" and "ummm"; in the other, he used none. They also gave half the students enough time to read it thoroughly, while the others got just 20 seconds, to see how limiting a person's understanding of the substance would alter the persuasiveness of the style.

The researchers found that in both versions style was important. When hesitant language was used, people were less easily convinced that this was a scanner worth buying - even when it was a better scanner at a lower price. Style was especially important, the researchers found, when time was limited (Journal of Applied Social Psychology, vol 38, p 37). "If you can't pay attention to what the speaker is saying," Sparks says, "you pay attention to how they say it."

So take a lesson from Paul, the conman. If you want to be persuasive, don't stumble, pause or use language that shows hesitation. And for goodness sake, don't give your listeners time to think about what you're really saying.
7 Get them angry

ANGERING people may seem like an odd way to go about persuading them, but according to Monique Mitchell Turner, a communications professor at the University of Maryland, College Park, it is seriously underrated as a tool of persuasion.

Much study has gone into how emotions aid persuasion. The best known and most studied is fear. It serves well in campaigns that try to steer you clear of certain activities, like smoking or unprotected sex.

But fear doesn't always work, says Turner, and over time, people become more resistant to scare tactics. The same applies to guilt. It can be effective (think of maternal guilt), but not once people clue into the fact they're being manipulated. Worse, it has to be carefully calibrated: too much and people resist. "We don't want people telling us we're bad people," says Turner.

Anger is different. For one thing, it's focused on someone else's misdeeds, not your own. Also, it's a very utilitarian emotion, she says, usually in response to a perceived injustice. "Anger makes people feel empowered," Turner says.

There has been a long debate, she says, about whether anger can be constructively harnessed. In studying groups that employ anger as a tactic - most notably animal rights groups such as People for the Ethical Treatment of Animals, as well as environment organisations and even political campaigns - she has found that, given the right conditions, it can.

First, people have to be convinced that the issue is relevant to them, that it affects them or their children or their community. At that point, says Turner, you need to hammer home what's wrong with the world as it is. Once you have got people roiled up, you can offer them a way to remedy the situation (Public Relations Review, vol 33, p 114).

"When those feelings of anger are accompanied by the feeling that there is a solution to this problem, then the message is more likely to be persuasive," she says.
8 Resistance isn't futile

HISTORICALLY, psychologists studying persuasion have concentrated on what makes certain messages more appealing than others. But over the past few years researchers have begun revising that idea. A growing body of evidence suggests that breaking down people's resistance to persuasion can be even more important.

The reason for this is that people are naturally suspicious of attempts to persuade them. This is especially true if they think they are being duped.

In laboratory studies, merely reminding people that they are vulnerable to manipulation - for example, showing them magazine adverts with celebrities or models endorsing products they clearly know nothing about - makes them generally more difficult to persuade (Journal of Personality and Social Psychology, vol 83, p 526).

So far so obvious, but there's a useful point here. Resistance means that very persuasive arguments can backfire. People who successfully resist persuasion often become even more entrenched in their wrong-headed opinions, and the stronger, more credible or authoritative they perceive the attempt at persuasion to be, the more certain of their opinions they become when they resist it (Journal of Personality and Social Psychology, vol 83, p 1298).

At first blush, this seems paradoxical. You might think a strong, authoritative argument would hold greater sway. Not necessarily. It seems that if people resist good arguments presented by an expert, they conclude their own arguments must be even stronger.

This sets up a bit of a catch-22. "If you want to change people's attitudes, it's good to have strong arguments," says Zakary Tormala of Stanford University. "But if they manage to resist your message, they might become more certain of the very attitudes you want to change."

How to overcome this deadlock? Tormala's colleague Richard Petty of Ohio State University says: "Present positions closer to your target's views, then move them towards your goal a little at a time." You could also try charming them by boosting their self-esteem. "When people feel good about themselves, they are more open to challenging messages," he says.

People Are Scared

Current mood: blah

I think people are scared. Based on the actions I've witnessed in both other people and in myself, this is what I believe.

Under the normal social restrictions connected to societal normality's, I think fear dictates our behavior. This fear is over sensitized; Resulting in behavioral doubts and/or worries and consequentially prevents us from reaching our true potential and true purpose in life.

This realization has formed a want in me to follow my own personal truth. I will conquer my fears and, during my efforts, I will encourage others to follow the same path. The path based on truth.

The Wal-Mart You Don’t Know

Current mood: enthralled

An interesting article I was reading about Walmart by: Charles Fishman

The giant retailer's low prices often come with a high cost. Wal-Mart's relentless pressure can crush the companies it does business with and force them to send jobs overseas. Are we shopping our way straight to the unemployment line?

A gallon-sized jar of whole pickles is something to behold. The jar is the size of a small aquarium. The fat green pickles, floating in swampy juice, look reptilian, their shapes exaggerated by the glass. It weighs 12 pounds, too big to carry with one hand. The gallon jar of pickles is a display of abundance and excess; it is entrancing, and also vaguely unsettling. This is the product that Wal-Mart fell in love with: Vlasic's gallon jar of pickles.

Wal-Mart priced it at $2.97--a year's supply of pickles for less than $3! "They were using it as a 'statement' item," says Pat Hunn, who calls himself the "mad scientist" of Vlasic's gallon jar. "Wal-Mart was putting it before consumers, saying, This represents what Wal-Mart's about. You can buy a stinkin' gallon of pickles for $2.97. And it's the nation's number-one brand."

Therein lies the basic conundrum of doing business with the world's largest retailer. By selling a gallon of kosher dills for less than most grocers sell a quart, Wal-Mart may have provided a ser-vice for its customers. But what did it do for Vlasic? The pickle maker had spent decades convincing customers that they should pay a premium for its brand. Now Wal-Mart was practically giving them away. And the fevered buying spree that resulted distorted every aspect of Vlasic's operations, from farm field to factory to financial statement.

Indeed, as Vlasic discovered, the real story of Wal-Mart, the story that never gets told, is the story of the pressure the biggest retailer relentlessly applies to its suppliers in the name of bringing us "every day low prices." It's the story of what that pressure does to the companies Wal-Mart does business with, to U.S. manufacturing, and to the economy as a whole. That story can be found floating in a gallon jar of pickles at Wal-Mart.

Wal-Mart is not just the world's largest retailer. It's the world's largest company--bigger than ExxonMobil, General Motors, and General Electric. The scale can be hard to absorb. Wal-Mart sold $244.5 billion worth of goods last year. It sells in three months what

number-two retailer Home Depot sells in a year. And in its own category of general merchandise and groceries, Wal-Mart no longer has any real rivals. It does more business than Target, Sears, Kmart, J.C. Penney, Safeway, and Kroger combined. "Clearly," says Edward Fox, head of Southern Methodist University's J.C. Penney Center for Retailing Excellence, "Wal-Mart is more powerful than any retailer has ever been." It is, in fact, so big and so furtively powerful as to have become an entirely different order of corporate being.

Wal-Mart wields its power for just one purpose: to bring the lowest possible prices to its customers. At Wal-Mart, that goal is never reached. The retailer has a clear policy for suppliers: On basic products that don't change, the price Wal-Mart will pay, and will charge shoppers, must drop year after year. But what almost no one outside the world of Wal-Mart and its 21,000 suppliers knows is the high cost of those low prices. Wal-Mart has the power to squeeze profit-killing concessions from vendors. To survive in the face of its pricing demands, makers of everything from bras to bicycles to blue jeans have had to lay off employees and close U.S. plants in favor of outsourcing products from overseas.

Of course, U.S. companies have been moving jobs offshore for decades, long before Wal-Mart was a retailing power. But there is no question that the chain is helping accelerate the loss of American jobs to low-wage countries such as China. Wal-Mart, which in the late 1980s and early 1990s trumpeted its claim to "Buy American," has doubled its imports from China in the past five years alone, buying some $12 billion in merchandise in 2002. That's nearly 10% of all Chinese exports to the United States.

One way to think of Wal-Mart is as a vast pipeline that gives non-U.S. companies direct access to the American market. "One of the things that limits or slows the growth of imports is the cost of establishing connections and networks," says Paul Krugman, the Princeton University economist. "Wal-Mart is so big and so centralized that it can all at once hook Chinese and other suppliers into its digital system. So--wham!--you have a large switch to overseas sourcing in a period quicker than under the old rules of retailing."

Steve Dobbins has been bearing the brunt of that switch. He's president and CEO of Carolina Mills, a 75-year-old North Carolina company that supplies thread, yarn, and textile finishing to apparel makers--half of which supply Wal-Mart. Carolina Mills grew steadily until 2000. But in the past three years, as its customers have gone either overseas or out of business, it has shrunk from 17 factories to 7, and from 2,600 employees to 1,200. Dobbins's customers have begun to face imported clothing sold so cheaply to Wal-Mart that they could not compete even if they paid their workers nothing.

"People ask, 'How can it be bad for things to come into the U.S. cheaply? How can it be bad to have a bargain at Wal-Mart?' Sure, it's held inflation down, and it's great to have bargains," says Dobbins. "But you can't buy anything if you're not employed. We are shopping ourselves out of jobs."

The gallon jar of pickles at Wal-Mart became a devastating success, giving Vlasic strong sales and growth numbers--but slashing its profits by millions of dollars.

There is no question that Wal-Mart's relentless drive to squeeze out costs has benefited consumers. The giant retailer is at least partly responsible for the low rate of U.S. inflation, and a McKinsey & Co. study concluded that about 12% of the economy's productivity gains in the second half of the 1990s could be traced to Wal-Mart alone.

There is also no question that doing business with Wal-Mart can give a supplier a fast, heady jolt of sales and market share. But that fix can come with long-term consequences for the health of a brand and a business. Vlasic, for example, wasn't looking to build its brand on a gallon of whole pickles. Pickle companies make money on "the cut," slicing cucumbers into spears and hamburger chips. "Cucumbers in the jar, you don't make a whole lot of money there," says Steve Young, a former vice president of grocery marketing for pickles at Vlasic, who has since left the company.

At some point in the late 1990s, a Wal-Mart buyer saw Vlasic's gallon jar and started talking to Pat Hunn about it. Hunn, who has also since left Vlasic, was then head of Vlasic's Wal-Mart sales team, based in Dallas. The gallon intrigued the buyer. In sales tests, priced somewhere over $3, "the gallon sold like crazy," says Hunn, "surprising us all." The Wal-Mart buyer had a brainstorm: What would happen to the gallon if they offered it nationwide and got it below $3? Hunn was skeptical, but his job was to look for ways to sell pickles at Wal-Mart. Why not?

And so Vlasic's gallon jar of pickles went into every Wal-Mart, some 3,000 stores, at $2.97, a price so low that Vlasic and Wal-Mart were making only a penny or two on a jar, if that. It was showcased on big pallets near the front of stores. It was an abundance of abundance. "It was selling 80 jars a week, on average, in every store," says Young. Doesn't sound like much, until you do the math: That's 240,000 gallons of pickles, just in gallon jars, just at Wal-Mart, every week. Whole fields of cucumbers were heading out the door.

For Vlasic, the gallon jar of pickles became what might be called a devastating success. "Quickly, it started cannibalizing our non-Wal-Mart business," says Young. "We saw consumers who used to buy the spears and the chips in supermarkets buying the Wal-Mart gallons. They'd eat a quarter of a jar and throw the thing away when they got moldy. A family can't eat them fast enough."

The gallon jar reshaped Vlasic's pickle business: It chewed up the profit margin of the business with Wal-Mart, and of pickles generally. Procurement had to scramble to find enough pickles to fill the gallons, but the volume gave Vlasic strong sales numbers, strong growth numbers, and a powerful place in the world of pickles at Wal-Mart. Which accounted for 30% of Vlasic's business. But the company's profits from pickles had shriveled 25% or more, Young says--millions of dollars.

The gallon was hoisting Vlasic and hurting it at the same time.

Young remembers begging Wal-Mart for relief. "They said, 'No way,' " says Young. "We said we'll increase the price"--even $3.49 would have helped tremendously--"and they said, 'If you do that, all the other products of yours we buy, we'll stop buying.' It was a clear threat." Hunn recalls things a little differently, if just as ominously: "They said, 'We want the $2.97 gallon of pickles. If you don't do it, we'll see if someone else might.' I knew our competitors were saying to Wal-Mart, 'We'll do the $2.97 gallons if you give us your other business.' " Wal-Mart's business was so indispensable to Vlasic, and the gallon so central to the Wal-Mart relationship, that decisions about the future of the gallon were made at the CEO level.

Finally, Wal-Mart let Vlasic up for air. "The Wal-Mart guy's response was classic," Young recalls. "He said, 'Well, we've done to pickles what we did to orange juice. We've killed it. We can back off.' " Vlasic got to take it down to just over half a gallon of pickles, for $2.79. Not long after that, in January 2001, Vlasic filed for bankruptcy--although the gallon jar of pickles, everyone agrees, wasn't a critical factor.

By now, it is accepted wisdom that Wal-Mart makes the companies it does business with more efficient and focused, leaner and faster. Wal-Mart itself is known for continuous improvement in its ability to handle, move, and track merchandise. It expects the same of its suppliers. But the ability to operate at peak efficiency only gets you in the door at Wal-Mart. Then the real demands start. The public image Wal-Mart projects may be as cheery as its yellow smiley-face mascot, but there is nothing genial about the process by which Wal-Mart gets its suppliers to provide tires and contact lenses, guns and underarm deodorant at every day low prices. Wal-Mart is legendary for forcing its suppliers to redesign everything from their packaging to their computer systems. It is also legendary for quite straightforwardly telling them what it will pay for their goods.

"We are one of Wal-Mart's biggest suppliers, and they are our biggest customer, by far. We have a great relationship. That's all I can say. Are we done now?"

John Fitzgerald, a former vice president of Nabisco, remembers Wal-Mart's reaction to his company's plan to offer a 25-cent newspaper coupon for a large bag of Lifesavers in advance of Halloween. Wal-Mart told Nabisco to add up what it would spend on the promotion--for the newspaper ads, the coupons, and handling--and then just take that amount off the price instead. "That isn't necessarily good for the manufacturer," Fitzgerald says. "They need things that draw attention."

It also is not unheard of for Wal-Mart to demand to examine the private financial records of a supplier, and to insist that its margins are too high and must be cut. And the smaller the supplier, one academic study shows, the greater the likelihood that it will be forced into damaging concessions. Melissa Berryhill, a Wal-Mart spokeswoman, disagrees: "The fact is Wal-Mart, perhaps like no other retailer, seeks to establish collaborative and mutually beneficial relationships with our suppliers."

For many suppliers, though, the only thing worse than doing business with Wal-Mart may be not doing business with Wal-Mart. Last year, 7.5 cents of every dollar spent in any store in the United States (other than auto-parts stores) went to the retailer. That means a contract with Wal-Mart can be critical even for the largest consumer-goods companies. Dial Corp., for example, does 28% of its business with Wal-Mart. If Dial lost that one account, it would have to double its sales to its next nine customers just to stay even. "Wal-Mart is the essential retailer, in a way no other retailer is," says Gib Carey, a partner at Bain & Co., who is leading a yearlong study of how to do business with Wal-Mart. "Our clients cannot grow without finding a way to be successful with Wal-Mart."

Many companies and their executives frankly admit that supplying Wal-Mart is like getting into the company version of basic training with an implacable Army drill sergeant. The process may be unpleasant. But there can be some positive results.

"Everyone from the forklift driver on up to me, the CEO, knew we had to deliver [to Wal-Mart] on time. Not 10 minutes late. And not 45 minutes early, either," says Robin Prever, who was CEO of Saratoga Beverage Group from 1992 to 2000, and made private-label water sold at Wal-Mart. "The message came through clearly: You have this 30-second delivery window. Either you're there, or you're out. With a customer like that, it changes your organization. For the better. It wakes everybody up. And all our customers benefited. We changed our whole approach to doing business."

But you won't hear evenhanded stories like that from Wal-Mart, or from its current suppliers. Despite being a publicly traded company, Wal-Mart is intensely private. It declined to talk in detail about its relationships with its suppliers for this story. More strikingly, dozens of companies contacted declined to talk about even the basics of their business with Wal-Mart.

Here, for example, is an executive at Dial: "We are one of Wal-Mart's biggest suppliers, and they are our biggest customer by far. We have a great relationship. That's all I can say. Are we done now?" Goaded a bit, the executive responds with an almost hysterical edge: "Are you meshuga? Why in the world would we talk about Wal-Mart? Ask me about anything else, we'll talk. But not Wal-Mart."

No one wants to end up in what is known among Wal-Mart vendors as the "penalty box"--punished, or even excluded from the store shelves, for saying something that makes Wal-Mart unhappy. (The penalty box is normally reserved for vendors who don't meet performance benchmarks, not for those who talk to the press.)

"You won't hear anything negative from most people," says Paul Kelly, founder of Silvermine Consulting Group, a company that helps businesses work more effectively with retailers. "It would be committing suicide. If Wal-Mart takes something the wrong way, it's like Saddam Hussein. You just don't want to piss them off."

As a result, this story was reported in an unusual way: by speaking with dozens of people who have spent years selling to Wal-Mart, or consulting to companies that sell to Wal-Mart, but who no longer work for companies that do business with Wal-Mart. Unless otherwise noted, the companies involved in the events they described refused even to confirm or deny the basics of the events.

To a person, all those interviewed credit Wal-Mart with a fundamental integrity in its dealings that's unusual in the world of consumer goods, retailing, and groceries. Wal-Mart does not cheat suppliers, it keeps its word, it pays its bills briskly. "They are tough people but very honest; they treat you honestly," says Peter Campanella, who ran the business that sold Corning kitchenware products, both at Corning and then at World Kitchen. "It was a joke to do business with most of their competitors. A fiasco."

But Wal-Mart also clearly does not hesitate to use its power, magnifying the Darwinian forces already at work in modern global capitalism.

Caught in the Wal-Mart squeeze, Huffy didn't just relinquish profits to keep its commitment to the retailer. It handed those profits to the competition.

What does the squeeze look like at Wal-Mart? It is usually thoroughly rational, sometimes devastatingly so.

John Mariotti is a veteran of the consumer-products world--he spent nine years as president of Huffy Bicycle Co., a division of Huffy Corp., and is now chairman of World Kitchen, the company that sells Oxo, Revere, Corning, and Ekco brand housewares.

He could not be clearer on his opinion about Wal-Mart: It's a great company, and a great company to do business with. "Wal-Mart has done more good for America by several thousand orders of magnitude than they've done bad," Mariotti says. "They have raised the bar, and raised the bar for everybody."

Mariotti describes one episode from Huffy's relationship with Wal-Mart. It's a tale he tells to illustrate an admiring point he makes about the retailer. "They demand you do what you say you are going to do." But it's also a classic example of the damned-if-you-do, damned-if-you-don't Wal-Mart squeeze. When Mariotti was at Huffy throughout the 1980s, the company sold a range of bikes to Wal-Mart, 20 or so models, in a spread of prices and profitability. It was a leading manufacturer of bikes in the United States, in places like Ponca City, Oklahoma; Celina, Ohio; and Farmington, Missouri.

One year, Huffy had committed to supply Wal-Mart with an entry-level, thin-margin bike--as many as Wal-Mart needed. Sales of the low-end bike took off. "I woke up May 1"--the heart of the bike production cycle for the summer--"and I needed 900,000 bikes," he says. "My factories could only run 450,000." As it happened, that same year, Huffy's fancier, more-profitable bikes were doing well, too, at Wal-Mart and other places. Huffy found itself in a bind.

With other retailers, perhaps, Mariotti might have sat down, renegotiated, tried to talk his way out of the corner. Not with Wal-Mart. "I made the deal up front with them," he says. "I knew how high was up. I was duty-bound to supply my customer." So he did something extraordinary. To free up production in order to make Wal-Mart's cheap bikes, he gave the designs for four of his higher-end, higher-margin products to rival manufacturers. "I conceded business to my competitors, because I just ran out of capacity," he says. Huffy didn't just relinquish profits to keep Wal-Mart happy--it handed those profits to its competition. "Wal-Mart didn't tell me what to do," Mariotti says. "They didn't have to." The retailer, he adds, "is tough as nails. But they give you a chance to compete. If you can't compete, that's your problem."

In the years since Mariotti left Huffy, the bike maker's relationship with Wal-Mart has been vital (though Huffy Corp. has lost money in three out of the last five years). It is the number-three seller of bikes in the United States. And Wal-Mart is the number-one retailer of bikes. But here's one last statistic about bicycles: Roughly 98% are now imported from places such as China, Mexico, and Taiwan. Huffy made its last bike in the United States in 1999.

As Mariotti says, Wal-Mart is tough as nails. But not every supplier agrees that the toughness is always accompanied by fairness. The Lovable Company was founded in 1926 by the grandfather of Frank Garson II, who was Lovable's last president. It did business with Wal-Mart, Garson says, from the earliest days of founder Sam Walton's first store in Bentonville, Arkansas. Lovable made bras and lingerie, supplying retailers that also included Sears and Victoria's Secret. At one point, it was the sixth-largest maker of intimate apparel in the United States, with 700 employees in this country and another 2,000 at eight factories in Central America.

Eventually Wal-Mart became Lovable's biggest customer. "Wal-Mart has a big pencil," says Garson. "They have such awesome purchasing power that they write their own ticket. If they don't like your prices, they'll go vertical and do it themselves--or they'll find someone that will meet their terms."

In the summer of 1995, Garson asserts, Wal-Mart did just that. "They had awarded us a contract, and in their wisdom, they changed the terms so dramatically that they really reneged." Garson, still worried about litigation, won't provide details. "But when you lose a customer that size, they are irreplaceable."

Lovable was already feeling intense cost pressure. Less than three years after Wal-Mart pulled its business, in its 72nd year, Lovable closed. "They leave a lot to be desired in the way they treat people," says Garson. "Their actions to pulverize people are unnecessary. Wal-Mart chewed us up and spit us out."

Believe it or not, American business has been through this before. The Great Atlantic & Pacific Tea Co., the grocery-store chain, stood astride the U.S. market in the 1920s and 1930s with a dominance that has likely never been duplicated. At its peak, A&P had five times the number of stores Wal-Mart has now (although much smaller ones), and at one point, it owned 80% of the supermarket business. Some of the antipredatory-pricing laws in use today were inspired by A&P's attempts to muscle its suppliers.

There is very little academic and statistical study of Wal-Mart's impact on the health of its suppliers and virtually nothing in the last decade, when Wal-Mart's size has increased by a factor of five. This while the retail industry has become much more concentrated. In large part, that's because it's nearly impossible to get meaningful data that would allow researchers to track the influence of Wal-Mart's business on companies over time. You'd need cooperation from the vendor companies or Wal-Mart or both--and neither Wal-Mart nor its suppliers are interested in sharing such intimate detail.

Bain & Co., the global management consulting firm, is in the midst of a project that asks, How does a company have a healthy relationship with Wal-Mart? How do you avoid being sucked into the vortex? How do you maintain some standing, some leverage of your own?

This July, in a mating that had the relieved air of lovers who had too long resisted embracing, Levi Strauss rolled blue jeans into every Wal-Mart in the United States.

Bain's first insights are obvious, if not easy. "Year after year," Carey, a partner at Bain & Co., says, "for any product that is the same as what you sold them last year, Wal-Mart will say, 'Here's the price you gave me last year. Here's what I can get a competitor's product for. Here's what I can get a private-label version for. I want to see a better value that I can bring to my shopper this year. Or else I'm going to use that shelf space differently.' "

Carey has a friend in the umbrella business who learned that. One year, because of costs, he went to Wal-Mart and asked for a 5% price increase. "Wal-Mart said, 'We were expecting a 5% decrease. We're off by 10%. Go back and sharpen your pencil.' " The umbrella man scrimped and came back with a 2% increase. "They said, 'We'll go with a Chinese manufacturer'--and he was out entirely."

The Wal-Mart squeeze means vendors have to be as relentless and as microscopic as Wal-Mart is at managing their own costs. They need, in fact, to turn themselves into shadow versions of Wal-Mart itself. "Wal-Mart won't necessarily say you have to reconfigure your distribution system," says Carey. "But companies recognize they are not going to maintain margins with growth in their Wal-Mart business without doing it."

The way to avoid being trapped in a spiral of growing business and shrinking profits, says Carey, is to innovate. "You need to bring Wal-Mart new products--products consumers need. Because with those, Wal-Mart doesn't have benchmarks to drive you down in price. They don't have historical data, you don't have competitors, they haven't bid the products out to private-label makers. That's how you can have higher prices and higher margins."

Reasonable advice, but not universally useful. There has been an explosion of "innovation" in toothbrushes and toothpastes in the past five years, for instance; but a pickle is a pickle is a pickle.

Bain's other critical discovery is that consumers are often more loyal to product companies than to Wal-Mart. With strongly branded items people develop a preference for--things like toothpaste or laundry detergent--Wal-Mart rarely forces shoppers to switch to a second choice. It would simply punish itself by seeing sales fall, and it won't put up with that for long.

But as Wal-Mart has grown in market reach and clout, even manufacturers known for nurturing premium brands may find themselves overpowered. This July, in a mating that had the relieved air of lovers who had too long resisted embracing, Levi Strauss rolled blue jeans into every Wal-Mart doorway in the United States: 2,864 stores. Wal-Mart, seeking to expand its clothing business with more fashionable brands, promoted the clothes on its in-store TV network and with banners slipped over the security-tag detectors at exit doors.

Levi's launch into Wal-Mart came the same summer the clothes maker celebrated its 150th birthday. For a century and a half, one of the most recognizable names in American commerce had survived without Wal-Mart. But in October 2002, when Levi Strauss and Wal-Mart announced their engagement, Levi was shrinking rapidly. The pressure on Levi goes back 25 years--well before Wal-Mart was an influence. Between 1981 and 1990, Levi closed 58 U.S. manufacturing plants, sending 25% of its sewing overseas.

Sales for Levi peaked in 1996 at $7.1 billion. By last year, they had spiraled down six years in a row, to $4.1 billion; through the first six months of 2003, sales dropped another 3%. This one account--selling jeans to Wal-Mart--could almost instantly revive Levi.

Last year, Wal-Mart sold more clothing than any other retailer in the country. It also sold more pairs of jeans than any other store. Wal-Mart's own inexpensive house brand of jeans, Faded Glory, is estimated to do $3 billion in sales a year, a house brand nearly the size of Levi Strauss. Perhaps most revealing in terms of Levi's strategic blunders: In 2002, half the jeans sold in the United States cost less than $20 a pair. That same year, Levi didn't offer jeans for less than $30.

For much of the last decade, Levi couldn't have qualified to sell to Wal-Mart. Its computer systems were antiquated, and it was notorious for delivering clothes late to retailers. Levi admitted its on-time delivery rate was 65%. When it announced the deal with Wal-Mart last year, one fashion-industry analyst bluntly predicted Levi would simply fail to deliver the jeans.

But Levi Strauss has taken to the Wal-Mart Way with the intensity of a near-death religious conversion--and Levi's executives were happy to talk about their experience getting ready to sell at Wal-Mart. One hundred people at Levi's headquarters are devoted to the new business; another 12 have set up in an office in Bentonville, near Wal-Mart's headquarters, where the company has hired a respected veteran Wal-Mart sales account manager.

Getting ready for Wal-Mart has been like putting Levi on the Atkins diet. It has helped everything--customer focus, inventory management, speed to market. It has even helped other retailers that buy Levis, because Wal-Mart has forced the company to replenish stores within two days instead of Levi's previous five-day cycle.

And so, Wal-Mart might rescue Levi Strauss. Except for one thing.

Levi didn't actually have any clothes it could sell at Wal-Mart. Everything was too expensive. It had to develop a fresh line for mass retailers: the Levi Strauss Signature brand, featuring Levi Strauss's name on the back of the jeans.

Two months after the launch, Levi basked in the honeymoon glow. Overall sales, after falling for the first six months of 2003, rose 6% in the third quarter; profits in the summer quarter nearly doubled. All, Levi's CEO said, because of Signature.

"They are all very rational people. And they had a good point. Everyone was willing to pay more for a Master Lock. But how much more can they justify?"

But the low-end business isn't a business Levi is known for, or one it had been particularly interested in. It's also a business in which Levi will find itself competing with lean, experienced players such as VF and Faded Glory. Levi's makeover might so improve its performance with its non-Wal-Mart suppliers that its established business will thrive, too. It is just as likely that any gains will be offset by the competitive pressures already dissolving Levi's premium brands, and by the cannibalization of its own sales. "It's hard to see how this relationship will boost Levi's higher-end business," says Paul Farris, a professor at the University of Virginia's Darden Graduate School of Business Administration. "It's easy to see how this will hurt the higher-end business."

If Levi clothing is a runaway hit at Wal-Mart, that may indeed rescue Levi as a business. But what will have been rescued? The Signature line--it includes clothing for girls, boys, men, and women--is an odd departure for a company whose brand has long been an American icon. Some of the jeans have the look, the fingertip feel, of pricier Levis. But much of the clothing has the look and feel it must have, given its price (around $23 for adult pants): cheap. Cheap and disappointing to find labeled with Levi Strauss's name. And just five days before the cheery profit news, Levi had another announcement: It is closing its last two U.S. factories, both in San Antonio, and laying off more than 2,500 workers, or 21% of its workforce. A company that 22 years ago had 60 clothing plants in the United States--and that was known as one of the most socially reponsible corporations on the planet--will, by 2004, not make any clothes at all. It will just import them.

In the end, of course, it is we as shoppers who have the power, and who have given that power to Wal-Mart. Part of Wal-Mart's dominance, part of its insight, and part of its arrogance, is that it presumes to speak for American shoppers.

If Wal-Mart doesn't like the pricing on something, says Andrew Whitman, who helped service Wal-Mart for years when he worked at General Foods and Kraft, they simply say, "At that price we no longer think it's a good value to our shopper. Therefore, we don't think we should carry it."

Wal-Mart has also lulled shoppers into ignoring the difference between the price of something and the cost. Its unending focus on price underscores something that Americans are only starting to realize about globalization: Ever-cheaper prices have consequences. Says Steve Dobbins, president of thread maker Carolina Mills: "We want clean air, clear water, good living conditions, the best health care in the world--yet we aren't willing to pay for anything manufactured under those restrictions."

Randall Larrimore, a former CEO of MasterBrand Industries, the parent company of Master Lock, understands that contradiction too well. For years, he says, as manufacturing costs in the United States rose, Master Lock was able to pass them along. But at some point in the 1990s, Asian manufacturers started producing locks for much less. "When the difference is $1, retailers like Wal-Mart would prefer to have the brand-name padlock or faucet or hammer," Larrimore says. "But as the spread becomes greater, when our padlock was $9, and the import was $6, then they can offer the consumer a real discount by carrying two lines. Ultimately, they may only carry one line."

In January 1997, Master Lock announced that, after 75 years making locks in Milwaukee, it would begin importing more products from Asia. Not too long after, Master Lock opened a factory of its own in Nogales, Mexico. Today, it makes just 10% to 15% of its locks in Milwaukee--its 300 employees there mostly make parts that are sent to Nogales, where there are now 800 factory workers.

Larrimore did the first manufacturing layoffs at Master Lock. He negotiated with Master Lock's unions himself. He went to Bentonville. "I loved dealing with Wal-Mart, with Home Depot," he says. "They are all very rational people. There wasn't a whole lot of room for negotiation. And they had a good point. Everyone was willing to pay more for a Master Lock. But how much more can they justify? If they can buy a lock that has arguably similar qual-ity, at a cheaper price, well, they can get their consumers a deal."

It's Wal-Mart in the role of Adam Smith's invisible hand. And the Milwaukee employees of Master Lock who shopped at Wal-Mart to save money helped that hand shove their own jobs right to Nogales. Not consciously, not directly, but inevitably. "Do we as consumers appreciate what we're doing?" Larrimore asks. "I don't think so. But even if we do, I think we say, Here's a Master Lock for $9, here's another lock for $6--let the other guy pay $9."

Charles Fishman (cnfish@mindspring.com) is a senior writer at Fast Company. Andrew Moesel provided research assistance for this story.