Costco and AmEx breakup

[unclemick]

I married a Costco/Amexer. Before that I was Walmart/Tractor Supply.

heh heh heh -

[Walt34]

Quote:

Originally Posted by Midpack But then The Millionaire Next Door explained how looks can be deceiving. I am sure many of us here don't "look the part" of our portfolios.

That's been mentioned in other threads, and there may have been a thread on the topic. I know I still have a jacket purchased during the Nixon administration although DW doesn't like me to wear it in public.

Why would I throw it out? It doesn't have any holes in it. Well, none that show anyway.

[audreyh1]

Quote:

Originally Posted by 6miths We went to Capital One Platinum MC in Canada but Costco now takes any MC. The Costco AMEX went extinct and AMEX reissued regular cards. I cancelled and chopped mine up as only used it at Costco. I had been considering a premium AMEX for travel due to all the airport lounge access but they have cut this way back so decided against that. Capital One MC is 3% restaurant, 2% gas and 1% for other things. It started with 3 months of 2% for regular purchases.

3% for restaurant - now we're talking!!!

[Bestwifeever]

Quote:

Originally Posted by timo2 According to a story on Marketplace, "The average Costco customer has an income of $100,000 a year." I would like to see the source data, to see if they used the word average correctly (in lieu of 'typical' for instance) or if the actual average that high because of extra big incomes added in? I wonder what the median would be? Average Costco customer makes six figures | Marketplace.org

I wonder if there's a source, and maybe it's household vs individual, but I believe it. Someone's buying those $60 bottles of store brand single malt: http://www.early-retirement.org/foru...tch-74558.html

[MBAustin]

Quote:

Originally Posted by Walt34 I know I still have a jacket purchased during the Nixon administration although DW doesn't like me to wear it in public. Why would I throw it out? It doesn't have any holes in it. Well, none that show anyway.

DH still has and wears regularly a shirt I bought at a mega-garage-sale in early 1992 for a quarter. I remember because I was pregnant with DS and used the sale as an excuse to have DH get some quality time with DD (2 at the time). I keep suggesting he get rid of it but in reality it still looks reasonably presentable.

Back on topic, I am in the bummed category - I like being able to use AMEX at Costco, but if they go the MasterCard route, I'll go back to using my debit card.

[splitwdw]

I was just at Costco and the American Express booth/table is set up back by the freezer section. A man was there signing people up.

[6miths]

Quote:

Originally Posted by Walt34 That's been mentioned in other threads, and there may have been a thread on the topic. I know I still have a jacket purchased during the Nixon administration although DW doesn't like me to wear it in public. Why would I throw it out? It doesn't have any holes in it. Well, none that show anyway.

And so what if it did have a hole! Lol. As I sit in my ski pullover shell (vintage 1990) that has a hole at the bottom front! It was well earned during an encounter with a tree. My other ski jacket (more like 1999) has a scrape/hole in the shoulder from a rub with an 'out of bounds' fence (the kind where there is a large drop on the other side). I wear them with pride. And I know that some might say that having two ski shells is the peak of extravagance but I don't like going out with them damp so I alternate them.

I believe the average income data. In my neck of the woods, Costcos are not very accessible and I would guess that almost everyone who shops there has a car and I would think that if you can afford to buy a year's worth of Kirkland paper towels when they are on sale that you are doing pretty well.

[TrvlBug]

Quote:

Originally Posted by 6miths We went to Capital One Platinum MC in Canada but Costco now takes any MC. The Costco AMEX went extinct and AMEX reissued regular cards. I cancelled and chopped mine up as only used it at Costco. I had been considering a premium AMEX for travel due to all the airport lounge access but they have cut this way back so decided against that. Capital One MC is 3% restaurant, 2% gas and 1% for other things. It started with 3 months of 2% for regular purchases.

Good to know they'll issue regular cards as I have a recurring monthly auto payment on that card and use it multiple times a year for their 'enhanced' insurance program when renting cars. In the US, it becomes primary, and overseas, it provides much better coverage that the usual cc car rental coverage bennies. for $17.xx per rental, it can't be beat.

[Cobra9777]

Quote:

Costco cards accounted for 8% of American Express’ billed business and 10% of its cards, according to a note by John Hecht, an analyst at investment banking firm Jefferies.

Quote:

Originally Posted by adrift Wow. This is appears to be a big deal for Amex.

Big revenue no doubt. But probably low margin, or at least it averaged down the total. Strategic alliances with mega-customers can be good for top-line growth initially. But over time, they inevitably leverage that volume (and in this case exclusivity) into lower pricing. And with Costco demanding even more, AMEX said enough is enough. Probably a very smart move in the long-run, and probably took Costco by surprise. AMEX will certainly be penalized during the transitional period by analysts who just see the revenue hit. But obviously, they would not have walked away from such a huge piece of business unless it was going to be a significant long-term drag on earnings to stay with it.

Quote:

We were unable to reach terms that would have made economic sense for our company and shareholders, American Express CEO Kenneth Chenault said in a statement.

[Brat]

Let's see what kind of deal Costco seals with the card they choose.

One feature that I do like on my Costco Amex is my picture on the back. Merchants really like that as it assures that I am the card holder.

[Chuckanut]

I would still shop Costco even if I had to pay with cash or a paper check. Heck, I would even consider Bitcoin. How they treat me as a customer and how they treat employees and their pricing policy are a big plus, IMHO.

[Fermion]

Quote:

Originally Posted by audreyh1 Although it looks like you don't start earning 2% until you hit $15,000 on the card. This may be a real restriction for some folks. That's pretty high.

I hit $70,000 on our Venture card :-(

[6miths]

Quote:

Originally Posted by Chuckanut I would still shop Costco even if I had to pay with cash or a paper check. Heck, I would even consider Bitcoin. How they treat me as a customer and how they treat employees and their pricing policy are a big plus, IMHO.

+1

They have a reputation as an excellent employer and their return policy is unrivaled. I only broke down and got the Costco Amex maybe 18 months ago after being a Costco member for many years. Of course within 4 months of getting the card, Costco in Canada announced that they were ditching it. lol.

[audreyh1]

Quote:

Originally Posted by Fermion I hit $70,000 on our Venture card :-(

You're going to admit that in public? LOL!

[ExFlyBoy5]

The whole 'look the part' of being wealthy makes me laugh. Within about a year, one of Atlanta's most respected neurosurgeons moved in down the street from us. The houses or our neighborhood sell for about $240K whereas the new ones around us are from the 700's and up. He drives a Honda Accord that's an early 2000 model. I've run into him at the grocery store twice while out and about and I swear you'd think he was homeless with the clothes he wears. So I figure he's either the king of LBYM or owes someone a TON of money. But...I certainly don't assume anything about someone's wealth from their appearance.



Sent from my mobile device so please excuse grammatical errors.

[walkinwood]

A good article on a possible reason - lots of competition from banks for retail branded cards = very little margins.
U.S. retailers gaining upper hand in partnerships with banks | Reuters

[clifp]

Quote:

Originally Posted by timo2 According to a story on Marketplace, "The average Costco customer has an income of $100,000 a year." I would like to see the source data, to see if they used the word average correctly (in lieu of 'typical' for instance) or if the actual average that high because of extra big incomes added in? I wonder what the median would be? Average Costco customer makes six figures | Marketplace.org

Several years ago I heard that median household income for a Costco was almost 80K. So an average income of 100K certainly seems plausible. Almost everyone in Hawaii shops at Costco, rich or poor which is why we have the busiest store in the system.

[Brat]

The store east of PDX would give you a run for that honor. Just south of the WA (sales tax) state line in OR (no sales tax). It is huge and the parking lot almost full daily.

[clifp]

Quote:

Originally Posted by Brat The store east of PDX would give you a run for that honor. Just south of the WA (sales tax) state line in OR (no sales tax). It is huge and the parking lot almost full daily.

Well here is an article about my Costco

Quote:

While the average Costco warehouse rings up $129 million each year, the Costco in Iwilei posts $300 million in sales annually.

Despite this they consistently provide really good service. Due to bad luck/bad timing I ended up at this Costco, Dec 31. Fireworks are legal in Hawaii, a huge Chinese tradition, and Costco is a big seller. Every shopping cart in the place was taken, and I had to follow somebody to their car to get a shopping cart. It was a madhouse inside, and the checklines looked huge. Despite this I timed it I was at the checkout stand in 7 minutes.

[Buckeye]

Quote:

Originally Posted by TrvlBug Good to know they'll issue regular cards as I have a recurring monthly auto payment on that card and use it multiple times a year for their 'enhanced' insurance program when renting cars. In the US, it becomes primary, and overseas, it provides much better coverage that the usual cc car rental coverage bennies. for $17.xx per rental, it can't be beat.

I'm definitely going to miss the $25 'covers everything for the length of the rental period' rental car insurance.