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Costco vs Walmart vs Retailers

Discussion in 'General Chit-Chat' started by premiercolour, Oct 14, 2012.

  1. premiercolour

    premiercolour Very Active Member

    At Costco, one of Mr. Sinegal's cardinal rules is that no branded item can be marked up by more than 14 percent, and no private-label item by more than 15 percent. In contrast, supermarkets generally mark up merchandise by 25 percent, and department stores by 50 percent or more.

    Beth Wagner, 36, used to manage a Rite Aid drugstore, where she made $24,000 a year and paid nearly $4,000 a year for health coverage. She quit five years ago to work at Costco, taking a cut in pay. She started at $10.50 an hour - $22,000 a year - but now makes $18 an hour as a receiving clerk. With annual bonuses, her income is about $40,000.

    "I want to retire here," she said. "I love it here."


    http://www.nytimes.com/2005/07/17/business/yourmoney/17costco.html?pagewanted=all&_r=0
     
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  2. Craig Sjoquist

    Craig Sjoquist Major Contributor

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    This proves treating the employees well with wages & benefits & respect you will be stronger employer & stand a better chance of good profits & longer success.

    As far as lower price in retail selling products you must also be able to match overhead at lowest cost with the most impact.

    As far as price in a service business such as the sign industry or any others it proves nothing since service is widely different in quality, speed, effectiveness & many other service related items.
     
  3. Craig Sjoquist

    Craig Sjoquist Major Contributor

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    Also note the CEO is a type A person and welled schooled in business & practices & created the cash to back it up.
     
  4. Mike F

    Mike F Active Member

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    40K a year to work at Costco? I'm at the wrong damn job, I don't even clear 25K.
     
  5. signswi

    signswi Very Active Member

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    The Costco CEO (or rather, former, he just retired in January) is one of those whom I really look up to. Constantly disproves theories about why business "must" be cut-throat and dehumanizing.
     
  6. Moze

    Moze Very Active Member

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    My wife and i joined Costco this year and are pretty happy with it. The kicker was we were looking at carpet over the weekend. We went to Lowes, Home Depot and a couple of flooring stores. Decided on one of the samples we saw at a flooring store and headed to Costco to pick up some food. We grabbed some pizza and were sitting there chatting and I said "Man, why can't Costco carry carpet??". We laughed it off and started shopping. She was at the end of one of the aisles and said "Come here, you're not going to believe this.". Sure enough, there's a representative from a local carpet store there set up with a booth. Long story short, they've worked out special pricing for Costco members. Not only is the carpet we picked a better carpet than what we were going to go with, but Costco gives 10% back after installation. I'm also an Executive member and they give Executive members an additional 2% discount on the price. Anyway, we got what is normally $5.xx/sf carpet for $4/sf plus a 10% rebate plus a 2% discount.

    There was also a pretty impressive news program a couple of weeks ago on Costco. They're now the largest wine retailer in the world and their Kirkland brand has received pretty high ratings. We picked up a few bottles of their brand and so far we're pretty impressed.
     
  7. rjssigns

    rjssigns Major Contributor

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    Costco is putting up a store not too far from our place. Will open about this time next year. YAY!
     
  8. ProWraps

    ProWraps Very Active Member

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    we have the premium membership with 2% cash back. we get the max back every year $500. costco pays us $400/year to shop there after membership fees.

    i LOVE costco. but also, its the only store around our brand new neighborhood. when the recession hit, the houses kept being built, and all the supermarkets about to be built pulled out.

    granted i have 972987923847 lbs of everything now, but i LOVE costco. i also buy my fiance a TON of jewelry there.
     
  9. Coloradosigns

    Coloradosigns Major Contributor

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    Don't they sell the Ghetto jewelry there?
     
  10. royster13

    royster13 Very Active Member

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    So what does Costco buy from your business?....If you get out and support local businesses, the new clients you gain from "word of mouth" will be worth more to you than any savings from Costco....
     
  11. David Wright

    David Wright Active Member

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    So much for small town values.
     
  12. slipperyfrog

    slipperyfrog Active Member

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    I buy all my gas at Costco with an AMEX card and double up fast on the cash back. Getting a check back at the end of the year is awesome.

    Have friends that work at the local Costco and have nothing but good things to say about working there. (other than the occasional *****y boss)
     
  13. ProWraps

    ProWraps Very Active Member

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    their jewelery is top notch. most of it is actually better than what they rate it at, AND they margin it like they do a bag of oranges.

    anyone that buys jewerly from a jewerly store is an idiot compared to shopping for it at costco.

    but sorry nerd, as of yet, they dont sell grillz.
     
  14. GAC05

    GAC05 Major Contributor

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    What does a family sized bag of 7 day bracelets go for?

    wayne k
    guam usa
     
  15. Coloradosigns

    Coloradosigns Major Contributor

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    It's ok, i found a few at Walgreen.
     

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