Costco Selection?

[Brat]

I read an analysis of Costco's business plan earlier this year. It concluded the Costco makes $0 on its merchandise, the profit is in the membership $.

 

[braumeister]

Net of rebates of 3-4%?? On average price of 3.50/gal, that is another .10/gal or more.
Nwsteve

Yes.
I frequently see the Costco gas price at 15-20 cents higher than elsewhere on my route. And at other stations I can use my PenFed Visa for a 5% rebate, so the difference is that much greater.

Don't get me wrong; I love Costco, but gas price is not why.

 

[travelover]

Costco gas is always cheaper by $0.10 to $0.20

My experience, too.

Costco also gets the better cuts of meat. They get the stuff that goes to the higher end restaurants (in the blue packages I think). Their regular meats are what normal restaurants get, and your local grocery store gets what the restaurants don't want.

Costco also holds their meat suppliers feet to the fire with respect to traceability of their meats. The meat packing lobby likes to play a game where it all gets mixed together and no one is accountable.

http://www.nytimes.com/2009/10/08/health/08meat.html

 

[Brat]

A Costco butcher told me that Costco owns a meet packing plant in California. I know enough to know that employees aren't the most reliable source but I found that interesting.

 

[Helen]

We are in the process of buying a car through Costco and I love it. I just emailed Costco with the type of car I wanted to test drive and they sent an automatic email telling me which dealer would contact me. Then the dealer contacted me and I showed up to test drive. So far, I've tested Jeeps, Toyotas and Subarus. The price is pre-determined based on the brand and model.

I will never go back to haggling my own price.

 

[NW-Bound]

A Costco butcher told me that Costco owns a meet packing plant in California. I know enough to know that employees aren't the most reliable source but I found that interesting.

I did not know that either. The following link confirms that.

http://www.nytimes.com/2009/10/08/health/08meat.html

Excerpt:

Costco is one of the few large grinders to test ingredients for the pathogen as they arrive at its plant, and Mr. Wilson said Tyson had declined to sell trimmings to the company, citing its testing.
​

 

[Midpack]

I read an analysis of Costco's business plan earlier this year. It concluded the Costco makes $0 on its merchandise, the profit is in the membership $.

During the membership spiel we got last Saturday, the Costco rep volunteered "we never markup any item more than 8-15%" and that's before other coupons or cash back.

I don't plan to summarize on subsequent trips and I'm not interested in debating the attached, but I know these savings are real from our last trip vs any brick-n-mortar alternative in our area. We undoubtedly saved more (about $1.50 on gas for one), but these were just the big items exact same brands I could readily get accurate pricing for. FWIW

 

[NW-Bound]

Just think of all the savings you could have had if you joined Costco 30+ years ago as we did.

 

[gromit]

CNBC did an hour show (43 actual minutes) about Costco that was interesting and is still available on YouTube (link & description below).
Costco Craze: Inside the Warehouse Giant - CNBC

Published on Aug 28, 2013 Costco is famous for turning the experience of warehouse shopping into an adventure. Costco, one of the nation's top three retailers and the world's largest membership warehouse chain, has thrived by turning convention on its head. The company never advertises, charges its 64 million members to shop there and doesn't mark up any product more than 15 percent. It's a business model that works, generating $93 billion in annual sales.


Costco Craze: Inside the Warehouse Giant - CNBC - YouTube

 

[Midpack]

Just think of all the savings you could have had if you joined Costco 30+ years ago as we did.

Too soon old, too late smart (me)...

 

[Chuckanut]

Published on Aug 28, 2013 Costco is famous for turning the experience of warehouse shopping into an adventure. Costco, one of the nation's top three retailers and the world's largest membership warehouse chain, has thrived by turning convention on its head. The company never advertises, charges its 64 million members to shop there and doesn't mark up any product more than 15 percent. It's a business model that works, generating $93 billion in annual sales.

Besides the Treasure Hunt approach, Costco also gives better benefits to its employees than many retail outfits. Even part-timers can get some form of medical, dental and vision benefits.

 

[NW-Bound]

... they had some great looking steak that I wanted to buy, real premium stuff, but the packages were 5 or 6 big steaks, and something like $50 per pack. So I'd need to freeze some, and I'd prefer not to freeze such premium cuts...

These packs are great if you are having a party. Costco also sells an entire tenderloin at a good price, though I have not bought any. Alton Brown of the FoodNetwork had an episode a few years ago about tenderloins, and talked about buying and trimming Costco's cut into serving sizes.

 

[NW-Bound]

Besides the Treasure Hunt approach, Costco also gives better benefits to its employees than many retail outfits. Even part-timers can get some form of medical, dental and vision benefits.

And that shows up in their employees' attitude and demeanor. Another chain I have seen with happy workers is Trader Joe's, though there is not much known about how they are treated.

PS. I owned Costco shares for a while. At one point, sold them for a profit and thought I would be able to buy back lower. Nope! That was a mistake.

 

[ziggy29]

And that shows up in their employees' attitude and demeanor. Another chain I have seen with happy workers is Trader Joe's, though there is not much known about how they are treated.

Well, there is this:

The Trader Joe's Lesson: How to Pay a Living Wage and Still Make Money in Retail - Sophie Quinton - The Atlantic

Sometimes I think the retailers and other employers that try to squeeze its workers as much as they can are being penny-wise and pound-foolish. When you factor in increased productivity, lower absenteeism and turnover, lower theft rates, better attitudes leaving customers with better experiences... maybe going as cheap as the market will bear may not be optimal? Higher wages and benefits may not always equate to that, but combined with an appropriate company culture which makes employees feel more like valued partners than slave-like "resources" to strip-mined and discarded, I can certainly see where it could.

 

[omni550]

And that shows up in their employees' attitude and demeanor. Another chain I have seen with happy workers is Trader Joe's, though there is not much known about how they are treated.

PS. I owned Costco shares for a while. At one point, sold them for a profit and thought I would be able to buy back lower. Nope! That was a mistake.

Googling:

Trader Joe's benefits include a 10% discount on purchases: Trader Joe's

Article about ACA and Trader Joe's: Trader Joe’s cut health benefits last week. Here’s its side of the story.

 

[NW-Bound]

Well, there is this:

The Trader Joe's Lesson: How to Pay a Living Wage and Still Make Money in Retail - Sophie Quinton - The Atlantic

Ah hah! There's a reason for everything. Also, as obtuse as I can be sometimes, my observation was correct.

Article about ACA and Trader Joe's: Trader Joe’s cut health benefits last week. Here’s its side of the story.

Uh Oh! Lemme read that too.

 

[NW-Bound]

Too soon old, too late smart (me)...

Sorry for making you feel bad, but perhaps Costco did not expand to the Northeast until later. Both Price Club and Costco originated from San Diego in 1976. They merged in 1993.

We joined Price Club in 1980, when we were just married. Back then, Price Club's membership was only opened to certain groups, and that included state employees. As my parents were state employees, their offsprings could also open an account with the State Employee Credit Union. Then, with the CU membership, we got to Price Club through the back door.

PS. Correction needed. Costco was founded in San Diego, but its first store opened in Seattle.

 

[rodi]

I'm a costco fan. I have the "pleasure" of having the original Price Club warehouse as my local store... not as shiny and new as other costcos around town - but I know it well and can get in and out quickly.

I love that costco is carrying more and more organic foods. I buy their organic hamburger and organic whole chickens. Both are far cheaper than I can get elsewhere.

But there are downsides to costco. I avoid it like the plague around lunch time because too many people come to "graze" at the food sample-fairies... making it a traffic cart nightmare. I also make sure I'm there right when it opens during the Christmas season because there are too many looky loos clogging up the parking lot and store - when I'm just trying to buy the family groceries and get out.

A friend calls it the $200 store. Can't get in/out without spending at least $200. Even with booze and occasional pricey add ons (usb flash drives for example) my average weekly bill was only about $150 - that's for a family of four and 99% of our grocery/sundry/booze bill.

As far as quantities - I resisted the large bags of flour and sugar - till I did the math and realized even if I threw away 1/3 (which I don't) I was still ahead on price per pound basis. Since I bake and make my own bread - it was a total winner. Storage can be an issue, though.

 

[ziggy29]

But there are downsides to costco. I avoid it like the plague around lunch time because too many people come to "graze" at the food sample-fairies... making it a traffic cart nightmare. I also make sure I'm there right when it opens during the Christmas season because there are too many looky loos clogging up the parking lot and store - when I'm just trying to buy the family groceries and get out.

Costco is a perfect example of the kind of place that makes it great to be retired. You can pick a time to go when the lunch rush and the hordes of weekend warriors aren't invading and the experience can be a fair bit more, shall we say, sane.

 

[NW-Bound]

Speaking of prices, if one looks for sales and promotions elsewhere, Costco's prices can occasionally be beat. However, if I need something and have no time to wait, I know if I buy something at Costco, I will not be overpaying for things like tires, car batteries, and many other household products.

 

[FIREd]

I gave up my Costco membership a few years ago for a number of reasons. Packaging too big, constantly bumping into co-workers and other undesirables because everyone shops there, too many temptations, lack of consistency in the store selection, long checkout lines, grazing herds, etc.... It just was not my cup of tea.

 

[calmloki]

I'm a costco fan. ....
As far as quantities - I resisted the large bags of flour and sugar - till I did the math and realized even if I threw away 1/3 (which I don't) I was still ahead on price per pound basis. Since I bake and make my own bread - it was a total winner. Storage can be an issue, though.

Regarding baking bread and Costco - bought a 2# vacuum packed container of Red Star yeast, stored it in the freezer and have been using it since - it went past it's pull date a year ago, but the bread still rises...Think it was about the price of 6-8 1/4 oz yeast packets. Flour I pause on but haven't bought - I got unbleached bulk flour at Winco the other day for $0.30/#, which was way cheap - how does the Costco stuff compare. Also, which do you get and do you find the bag will fill and be contained by a 5 gallon plastic covered bucket or do you have another method?

 

[ERhoosier]

Recently got a Costco membership as a gift & went with DW to activate it. After all the hype, inc friends & relatives, must say I was somewhat disappointed. We shopped/browsed for 2 hrs & did find lower than ave prices on many items (though usu in large quantity packages). Generic drugs (the few they stock) are MUCH cheaper than drug store prices. OTOH lots of stuff was 'meh', or worse. Cliff bars were same (or sl more) than I usu pay. The limited selection of e- tablets were same price as big on-line retailers, and Epson ink for my printer was more than I usu pay at big local e-store. DW decided to finish her grocery shopping at Kroger & prices on chicken breasts, fish, bread, and milk were cheaper (this week at least ).
I'm big Gas Buddy fan and Costco (& Sam's Club) almost always have cheapest prices around. But can't use my fav rebate-rich Visa card & lines at pump are usu long (at least whenever I've driven by).

 

[Chuckanut]

costco is a perfect example of the kind of place that makes it great to be retired. You can pick a time to go when the lunch rush and the hordes of weekend warriors aren't invading and the experience can be a fair bit more, shall we say, sane.

+1

a huge +1. !!!!!!!!!!!!

 

[powerplay]

Another chain I have seen with happy workers is Trader Joe's, though there is not much known about how they are treated.

I have a neighbor who works at TJ's. He seems to be pretty happy with them. Several years ago he moved to AZ and transferred to a TJ's there. A couple months ago he is back in the neighborhood and working at the same TJ's he did before the AZ move. I also chat with the woman who does the samples on Sunday morning when I shop and she is quite happy with her employment at TJ's and she is in her early 60's.

I'm a happy Tj's shopper and Costco as well.