Costco’s Quiet Growth and Loud Impact

#costco #walmart #retail #amazon #business #podcast
Listen to the full episode 🎙️ Season 13, Episode 2 - Costco

[@gailonebell2154]

They treat their employees much better with lower turnover and their model has kept them protected from a lot of retail theft.

[@TheVGMajor]

They do not treat their employees that much better.

[@LK-hj1lm]

​@@TheVGMajorDammit, Killjoy. I was really hoping that was true!

[@TheVGMajor]

@@LK-hj1lm Sorry my brother worked there, you get more benefits but you also get more and harder work. Still better than Amazon by a mile though.

[@silverblue73]

The model of checking your card and receipt five times 👀

[@hanadr]

​@@TheVGMajorworking at Costco is miles above other retailers. Does that mean they treat their employees perfectly? No. But it's a hell of a better place to work than Walmart or Amazon. The bar is so low, they're pretty well above it.

[@kristopherriemer4807]

When I've shopped at Costco, the employees are friendly, helpful, and seem to enjoy their jobs. When I shop at Walmart, every employee seems angry, unhappy, and frustrated at their jobs. I am lucky enough to be a manager at a small, local, successful, niche retailer. I will never spend my money at a big chain where I can tell the employees are treated poorly and are unhappy, even if it saves me a few dollars. I don't make a lot of money, but I'm willing to spend a bit extra every month if I know it's going to a company that doesn't treat and pay their employees like garbage.

[@tpkdm71]

Costco is probably the least horrible retail company to work for in terms of how they treat their staff and right up there in how they get treated by customers. My brother worked for them for many years (here in Canada). Good benefits, decent pay and some opportunity for advancement. My kids softball coach was able to raise a family as the gas bar manager.

[@tpkdm71]

Costco is probably the least horrible retail company to work for in terms of how they treat their staff and right up there in how they get treated by customers. My brother worked for them for many years (here in Canada). Good benefits, decent pay and some opportunity for advancement. My kids softball coach was able to raise a family as the gas bar manager.

[@cameronmcleod8419]

The difference youre seeing is Costco pays above minimum wage, offers benefits, and ensures employees are taken care of. Walmart has the highest number of employees reliant on foodstamps and welfare to survive in the nation. Treat employees like real working professionals, you get real working professionals.

[@fluffytail6355]

I’m canada, at least where I live, most of the Walmart employees are East Indian who can hardly speak English so not only do you never get any help if you’re not East Indian, they can’t understand you anyway

[@sktoh4469]

​@@fluffytail6355 That's my experience as well. The entire store is swamped with Punjabis, employees and customers.

[@mb5ggX2SyFMM]

When I was homeless for a few years, I kept my Costco membership active during that time. I lived in a San Francisco shelter for a while and some of the shelter staff were surprised to see me shopping at the SF Costco. I would hit up every food sample cart before buying a $1.50 hot dog & soda. I could spend $15 a week if I ate every item from the food court menu. Sometimes it would be the only meal I ate that day. I could buy inexpensive underwear, socks, shoes, clothes, coats and backpacks. I bought toiletries at DollarTree to keep fresh and clean. No one could tell I was homeless unless I told them. People are surprised to learn I've been a Costco member for 25 years.

[@barcharlie]

Stealth

[@moeball740]

This is genius! Brilliant planning! How to make the best of a bad situation. Wish I had thought of this when I was homeless. I did at least do one thing right. I was homeless as a 21 year old college student. The one thing I did right was I got top grades in a couple of Business/Finance classes and so I applied to become a Teaching Assistant. Most college students know the bulk of the work for grading exams and teaching outside of professorial lectures is done by the TAs. I got accepted as a TA and one of the benefits was I got my own office on campus. Now I had a place to live! And got paid to be there! Still ate at the school cafeteria, took showers at the gym, but at least now I had a place to sleep at night that wasn't outside in a tent somewhere.

[@Cookie-zd7ei]

Wow i am so happy to read your stories.Working and thinking your way out of hardship. All of the best for your futures.well done

[@waltermh111]

I am similar. I love Costco. I live in my truck but I go often. I would go even more if it wasn't 14 miles from where I work. But any time I have a reason to go that way I do. The food is cheap but good. Pizza or hotdogs, the soda is only 70c either way. Can't beat that. Fun to walk around it and I have a storage unit and their shelving options are cheap and perfect. Got great fan options for the truck to keep me cool. Fruits. I shop there for 90% of my stuff.

[@shollinsiii]

I planned for homelessness too. Said I would keep a gym membership going. A Costco membership is a terrific idea too. (Not that I ever been homeless but as a little girl I used to eat mayo sandwiches and corn chips for dinner. So I stay ready. Lolol yesss my hubby thinks I’m dramatic too. 😂

[@Philip-lk5db]

Costco is the poster boy of showing how retail is done right. ❤

[@israelsotelo5477]

I love how Costco figured out, that if your employees like their job and feel well compensated they are more productive.

[@dutube99]

yes shocking isn't it. Kroger are you paying attention?

[@pjt3887]

This isn't something that's new. This is how it used to be.

[@christinadoxstader3004]

Weird, huh? I mean, there will be sone who take advantage and not be as productive as they could be, but those are outliers

[@christinadoxstader3004]

​@pjt3887 when, when was it like that?

[@AnimeSlaps]

It's really not much to do with employees, it's just that they have a great product selection and apply general psych practices in how they organize their stores as well as what products should be on the shelves. Costco is actually just a major manufacturer of a lot of goods for other brands and add their own branding to the high quality products they already sell to other stores/brands who jack up their prices. From that success they are able to pay employees very well which bolsters the already existing profitable model.

[@Plexus37]

Costcos trick is you go in to get milk and come out with a gazebo, a kayak and 3 TV's.

[@Hypatia52]

Been a Costco member for 30 years, absolutely never had that happen. Lists are great!

[@brandnewyorker]

Shit!!!! It literally happened more times than I’d like to admit 😞 😂

[@hedition9346]

One does not simply go to Costco just to get milk. With those queue, I'd make sure to load the car up.

[@BEAUTYnIQ]

well you can't go on to get a bag of radishes.. you hav to get like 4O Pounds of radishes..

[@Kmmlc]

@@hedition9346 Correction. One does not simply go to Costco to get a rotisserie chicken. That is quite literally part of their model. They lose money on the chicken but make money from everything else.

[@TheDragonLake]

I use to work at a food factory that had Costco as a customer. They are loud behind the scenes. They will audit their suppliers to ensure everythings up to par. This includes how employees are being compensated. They will threaten to withdraw money if they don't like it. That food factory job kickstarted my career. All hail Costco 🙌

[@Moonsfire62]

Cool...I'm happy to hear that their morals go beyond their front doors. 😊

[@MsTemptation]

I bloody love Costco. The employees are so helpful and friendly. The merchandise they carry is wonderful.

[@maddhattlizard]

Costco invests in their staff, instead of investing in the foyer.

[@LK-hj1lm]

I hope that's true!

[@mcclintocksamuel05]

Investing in the foyer is a good point. The more wrinkles to your business the more employees you need to maintain it. With Costco there’s just the product.

[@Philly390]

Unless you work for cart crew then you’re expendable

[@Foo3thoo]

​@@Philly390yup and they treated us on the cart crew like sub humanoids, even tho the carts are the literal life blood of the revenue stream. No carts, no sales.

[@kootiblu113]

I was told recently that my hours had to be cut because of sales loss at the costco I work at. I laughed when they said that because costco makes SO much money. How could they not afford to give me enough pay to survive out here.

[@mikelouis9389]

Plus, unlike Walmart and Amazon, Costco treats their employees well.

[@bobwilkinsonguitar6142]

Sounds like they can afford to, without spending too much on corporate bloat

[@maximecaron1969]

Yeah but they also destroy manufacturers and owners by selling their items at the cost price and they can't compete against Costco so they are forced to sell it for no revenue. Look it up. Business is business do not think for a second that a big compagny is doing something good, they are doing business.

[@mikelouis9389]

@@maximecaron1969 Uh, have you EVER looked into Wal-Marts business practices?

[@JasonTeach]

They also treat their customers well. The same can't be said for Walmart.

[@mikelouis9389]

@JasonTeach And, when a Costco moves into an area it doesn't put all the local mom and pops six feet under nor do it's employees wind up on food stamps.

[@callmebigpapa]

I love interacting with Costco employees they seem like happy people. It is so refreshing.

[@cwgarr]

Costco‘s success is based on two very simple things good products at a decent price. Another major factor in Costco success is the fact that they treat their employees like people. You can walk into any Costco and look at the employees and instead of the barely sentient zombies are in Walmart and Safeway and other large box stores you have people that are more or less content with what they have. The fact is if you talk to a Costco employee, they are happy. I have been going to the same Costco store for the last 20 years, and the same employees that were there when I first walked into the store are still there. That says a lot.

[@bamascubaman]

I think I read somewhere that their retention rates was in the +70% range.

[@ericepperson8409]

Costco is the only place I regularly shop that I recognize most of the ppl working there anytime I go. And that's of a staff with dozens of ppl in the building at a time.

[@mimiashford5544]

AND a "No Questions" return policy. That's eliminated a little stress over the years when something hasn't worked out.

[@melissachartres3219]

Costco's success is based on CHARGING PEOPLE FOR MEMBERSHIP JUST TO WALK THROUGH THE DOOR.

[@manp1039]

I think you got only part of the picture of why costco is successfull as a profit making business.. yes, quality products at a decent price are important.. but they found a way to attract customers with the free samples. I have sutdied successfull busineses.. and it seems the ones they give away free samples get more business.. And in the case of Costco, they have a business strategy of checking receipts as customers are leaving to reduce theft. and only members (generally) are even allowed in the stores. This helps to reduce theft as well.. And also, I think Costco is like going to a safe place that is pleasent to be with lots of support from the staff to make sure i can get the help i need . They also charge a membership fee. this helps to support thier operations but also ensuring reduction in theft. And customers can buy with essentially risk free shopping that when they buy something that they will like the product and it is the quality they can expect, or they can get their money back. I think Costco also uses great care to staff thier stores with the best staff. Thier online side is not very big at this point.. but I noticed it is growing.. they still really don't do much food online.. That is huge area of growth. And at least pre pandemic.. their food court has some of the prices.. slice of pizza.. soda and hot dogs.. latte's, soft serve ice scream, or whole large pizza for $9.99.. and apparently their fully cooked rotiserie chickens are extremely popular and unbeatable price. And their Kirkland brand has some incredible products at incredible prices too.

[@briangman3]

They sell good products at a great price, and it feels like maze runner finding something you don’t normally get!

[@StoneAgePHD]

Great price is overstated , when you pay membership $60 or $120 include that in your cost unless you do every 3-4 day shopping its the same price as everywhere else

[@r.rodriguez4991]

A lot of their items aren't really at that great of a price.

[@mattalex2113]

​@@StoneAgePHD they will reimburse you if you for the Executive Membership upgrade if you don't accumulate the price in cash back. The gas savings alone pays for the Gold Star membership, and if you get the costco card + Executive, you can expect a couple hundred bucks in cash back, especially if you buy a few big things like furniture or appliances. All this is true for me from a family of 3.

[@mattalex2113]

Also all of their produce is sold as a loss leader and better quality than most grocery chains

[@nicp794]

Also, they pay their employees a decent wage well above minimum wage and they have cheap hot dog and cheap gas.

[@GCNavigator]

From what I have learned, Costco sells its products at or close to what they pay. The profit earned by Costco is in the membership fees.

[@bren.r]

False. Just like Sam’s Club’s similar claim. They definitely have reasonable margins. Really what sets them apart is the lack of corporate bloat and focusing on what matters - things like efficiency, understand the cost of high turnover, respecting their staff and incentivizing them to stick around and be lifelong employees.

[@NoticemeSinPi]

​@@bren.rin what way is it false? Costco has a net profit margin of 2.73% which is the highest it's ever been

[@ericepperson8409]

@@bren.r Since they are publicly traded, their books are available for review. Their profits almost exactly match their income from memberships. There are few retailers who are as good at blending margins as Costco. Hot Dogs and Rotisserie Chickens lose them money, but bring ppl in the door. They have a hard policy that nothing is sold for more than 14% of cost. Most items are well below that though, but not all. The other thing they do to cut cost is minimize marketing. Plus suppliers love to deal with them. They'll bargain hard, but have a simplified structure that once a sale is done, it can usually be handled by one account manager, rather than a whole team of ppl.

[@MrKogline]

No, they could cut fees and still make money. They have great margins on products. You can read shareholder meetings on most investment sites for free to see traded company numbers. COST shareholder here.

[@annapatton4544]

@@bren.r when you sell your own brand, you don't have to make a crazy mark up to make a good profit. You also don't have to pay for separate deliveries from those vendors. I work for a competitor and our company also makes a huge amount of their own products; those products are much cheaper but the margin is often even large. Our employees purchase products at our stores at cost, and it often blows your mind to see how much the company pays for its products.

[@NissanSkylineVR30]

Costco CEO literally went for bat for his employees. Shareholders told him we should cut benefits from employees and Costco CEO told them all to fuck off and threaten them. At the end, the employees keep their benefits. This is how you create a good company: loyalty.

[@mamiavodah1012]

Yes, & Costco treats their employees very well & it shows! They're always nice, the prices are decent, they have CONSISTENTLY good solid quality products, they don't argue about returns & they have samples!!

[@Sonicfan138]

Costco prioritizes the customer: not a huge selection, but the products they have are top quality. Bulk purchases allow them to offer all their products at competitive prices. And the membership price is only $60 a year, which is cheaper than any subscription service on a monthly basis. And the hot dog combo is still only $1.50 because leadership understands that gets people in the door. They get it.

[@ObservationofLimits]

Well, here's the other thing. They keep a miniscule number of SKUs vs any other retailer or BBS. This cuts down on paperwork and middle management and intermediary problems IMMENSELY. Those are probably the greatest sources of loss through mishaps, poor working environment (leadershit) creating poor working output, misships, etc. 1b. Small SKU also means they cut down on fallibility of companies outside their control. I really want to say their food section is probably the only one where they have large variety (which is a smart move because many "cheap" retailers don't really do variety here, or they only do local variety - Woodman's and Wegmans are the far opposite, accumulating massive variety - but they're also not "cheap") 1c By buying/stocking/selling in bulk they don't need promotional material, end caps, etc. Which is a whole other industry point of failure (box making and printing and the papermills that supply those). 1d. Extreme reduction in labor by not having to stock shelves. Roll out another pallet, done. When I was younger, I did backroom work for a retailer and the number of employees required to stock the floor and in the back, do the back stock, overstock, fill stock was probably 3-6x as many people that actually worked the floor during operating hours. 2. Anything that is popular or falls under, "just about anyone will buy this if it's decent" (toilet paper, vodka, dog food, snack food, socks, etc) they have gone out of their way to create their own line. This again, streamlines logistics and cuts down issues AND lets them offer it competitively. One thing they do that almost no BBS do, IS MAKE IT FCKING GOOD. Not all Kirkland products are amazing, but you'd be hard pressed to find ones that are "Great Value, Sh:tty Quality" levels of indecent. Sometimes, like with their socks and vodka, they were unbeatable (especially the socks man, they just never wore out). 2b. They very clearly mark it as "their brand" / Kirkland. I don't think a lot of people know that a huge section of a store like Home Depot, is actually "Home Depot" branded goods, they just use some goofy company entity so most people don't know. Wal/Sam mart, Target are probably the only big ones I can think of that have a recognizable in house brand. (To clarify, at Home Depot, there might be 3 brands for lighting, 3 brands for fans, 3 brands for plumbing fixtures, and most of those are all Home Depot owned brands similar to Great Value, not separate entities, but almost nobody knows because every subsection has a different brand rather than one continuous one). 3. Most people don't know, but your membership is essentially free. If you don't save at least the $60 your membership is worth, they will refund you the difference. People finding this out is often the biggest source of new members. 4. I'm not sure if they still do this, but for the longest time, membership was not required for alcohol purchases. Which is why it's all the way in the back, roller coaster tycoon style. 5. Eye services - another one I'm not entirely sure on these days, but Optometry often doesn't fall under medical insurance. Price Club used to have an entire optometry department and outfitter in house. You could get an eye exam and two new pairs of glasses for less than your yearly vision insurance and an eye exam. So it was cheaper to just not have vision insurance and use price club / costco services through your membership. Everyone talks about the hotdog still being $1.50 blah blah blah. I'm convinced most of these people are just narcissists who want to appear knowledgeable. It's the fact it's a GOOD ASS FULL SIZE HOTDOG and not your usual pinkdick mystery slopsnake, and on a quality bun, is why people come back. Their chicken bakes, churros, pizza, etc are all really damn good price or not. It's one of the few places you can feed the family like it's still the 90s and not have it feel like low end fast good.

[@danhetherington8319]

It's smart though , you get groceries and save like 20$ on lunch. In a time where it costs 2 people around 25 dollars to grab McDonalds. It provides good value and costs them very little.

[@duewhat9815]

I've only ever gone to one specific Costco so I don't have a very large frame of reference but the selection was absolutely massive. It's probably 2-3 times larger than a normal Walmart.

[@johnl.7754]

⁠@@ObservationofLimitsGood Analysis on them. My 82 year old dad doesn’t shop much anymore but keeps his membership for the hearing aid good service

[@fluffytail6355]

@@ObservationofLimitsyou also don’t need a membership to use the pharmacy services or the cafeteria ❤

[@ChiliCat..]

Going to Costco is fun. Going to Walmart feels like going shopping. Same with target. Even Amazon. But going to Costco is fun, it’s like a mini adventure to see what you’ll find and taste.

[@danielstarr8957]

Idk about fun. The mosh pit crowds and fighting for a parking spot is becoming a bit much. I miss the early 2000s when less people shopped there so you didn't have to feel like a sardine.

[@tomcat8662]

Lol there is nothing fun about Costco. I’m usually ready to get out of there as soon as I step in the store. I typically go on a weekday in the middle of the day and the crowds are ridiculous. The door gestapos are something else as well. I mean, what’s the point of checking your card walking in if you can’t even check out at the register anyway without a membership?

[@tomihwang1502]

I agree! It’s fun! But it’s also very reliable when living overseas. There aren’t many shops that sell good quality goods in Asia where I’m at.

[@georgiafan6618]

Did your “mini adventure” involve threatening you to wear a mask during the plandemic?

[@Tiago98]

Couldn't say it better...

[@painforpoison]

At my local Canadian Costco, I can recognize many employees that have been there for years. All are super helpful and friendly (imo a good sign).

[@4thlord51]

The workers greet you with "Welcome to Costco. I love you." That's service.

[@StarDustMoonRocket]

It's not a retailer. It's a private buyers' club, funded through membership fees. It delivers value to its members.

[@Comic_Saens]

So as a member, you pay money in exchange for goods and services. That's a retailer, no?

[@josephharms8342]

Yeah but he's kinda not wrong they don't make that much off the sale of the items they make most of their money off memberships ​@@Comic_Saens

[@SCh1m3ra]

​@Comic_Saens Yes, a square can also be a rectangle. OP just thinks square means rectangle isn't correct. Love the username, btw.

[@Rhaspun]

Yes. Costco does a decent job of vetting the products they carry in their stores. Sometimes they may miss it but they do a good job bringing good products to the stores. I remember one time I tried the house brand of cereal at Walmart. It was suppose to be as good as HoneyNut Cheerios. But the first bowl I had I couldn't finish it. It was way too sweet. I threw it away. I had wondered if anyone had even tasted what they tried to sell. I know many food companies add sugar to almost anything to hook the consumer. But this cereal just didn't work for me. Another time I thought I'll buy some towels for wiping in the kitchen. The colors wouldn't stop bleeding from the towels. I washed the towels three times by themselves. I ended up using them as my shop rags.

[@markdasaro9045]

And yet somehow that they always have a cashier available or at least a shorter line

[@notapossum4296]

This is a big one. Wal-Mart's lines are ridiculously long and slow, and their cashier's are clearly and openly miserable. Costco has long lines, but at least the cashier's have some life in them, and they don't try to cram 30 people into 2 lanes

[@skully70]

My local Walmart just started a new self checkout section "for Members only!" So not only do they keep a majority of their registers closed. But now 1/3 of the open registers require membership... And as you can already guess, those are the only short lines.

[@skully70]

@WonderMonkey-xp3xk I agree with you, the Costco by me always has long lines. But they are always fully staffed and move quickly.

[@RideRedRacer]

not in california. i hate the long lines at our costco. makes me never want to go there

[@ericepperson8409]

I recently found out from a Costco employee - they have a system for determining when they need to open a register. The person checking your membership card when you enter has a small hand clicker. They monitor the rate of entries and depending on how many ppl have come in the last hour they will pull empolyees from stocking to man registers.

[@user-km4ze3wi2m]

I’ve gone to Costco since I was a kid and now I’m a loyal adult Costco shopper with my own little Costco lovers😂

[@RonCadillac]

It would seem one of their biggest cost advantages is selling in pallets/piles instead of paying employees to stock individual shelves. Also requiring other companies to package and brand their pallets accordingly.

[@terravarious]

This has the side affect of little to no restocking. Go to the shoe aisle of any Walmart and it looks like there was a riot. Costco is generally tidy because the employees care and do their jobs, but also the customers are neater. Be that because making them members makes them feel like they have a stake in it? or it self excludes the type of pig that leaves shit wherever they let go of it.

[@SarahFunes]

Costco is such an incredible company. They just have what you need a reasonable prices. I’ve never had a problem getting something from Costco. Good for food staples & basic clothing.

[@mushiat6530]

Ya. Only terrible thing I've bought there was their new Alfredo sauce. Absolutely godawful. Everything else has been amazing. Which .. is definitely better than any other store I've shopped at

[@juanferrer5924]

@@mushiat6530ironically their pesto is amazing

[@rrb79]

Nearing end of first membership in June. Didn’t think their prices are anything to write home about. But to each their own.

[@jonslg240]

Costco has 1 store per 375,000 people. Their household goods are on average more expensive than Walmart, yet they charge an annual fee. In areas where Walmart Supercenters are prevalent (like Fort Worth + most of Texas, most non-exreme blue states + red states) Walmart supercenters beat their prices + location availability. In BIG California cities, the nearest Walmart supercenter is 12 miles away, and so are Costcos.. the left waged war on both over the years.. Most people shop at Vons/Albertsons/Kroger/Ralphs/Food4Less etc.. Vons+Albertsons got permission to monopolize, and now they're trying to consolidate+monopolize EVERY store I mentioned above + more. Their prices have grown to insane prices ($5/lb for chicken drumsticks/thighs/legs+more for breasts) The democrats are pretending to fight it but aren't actually fighting it. The news never talks about it, for example, and the monopoly is hurting California consumers. Why does the left not care about monopolies for food that are necessary for human life, while pretending to care about other monopolies that have very little impact on the middle/lower middle class consumers? I'll let you decide.. but chances are you'll willingly stay blind to it. Politics in America has become CCCP politics - where people aren't willing to talk about the negative impacts their party has on society - even though the government doesn't punish you for talking out against it (..yet)

[@horselover40]

​@rrb79 depends on the product. Ehem it comes to meat, I find that you might spend a few dollars more, or even twice as much of the same product elsewhere, but you get like 4 to 10 times more product depending on which meat soooo...yeah

[@rossome3043]

I worked for costco and it was a GREAT company to work for...AWESOME managers/Bosses Awesome workplace

[@hardrockminer-50]

And that's why I bought Costco stock.

[@JeanFrancoisDesrosiers]

This! A good work ethic, better than average wage... When employees know their role, they are twice as effective as others.

[@georgiafan6618]

Describe what your awesome managers told you do during the plandemic. Be honest bro. I’m a Costco member and I’d like to take this opportunity to share your response with the entire world.

[@rossome3043]

@@georgiafan6618 I worked for Costco in Coquitlam BC. Canada from 2000-2003 before leaving for the Army. This was MANY years ago but I haven't A Negative word to speak of the Company/Managers/co-workers or people. Very family like workplace I felt VERY Welcomed.

[@jeannejohnson2692]

@@georgiafan6618 Twenty year Costco employee here. Our managers asked us to do the same thing they were doing... To take care of the members. All day every day under exponentially more difficult conditions that seemed like they would never end. And Costco also took care of our own employees that were struggling at the time.

[@AvaGrail]

Their staff seem happy and working well together I love that culture.

[@teresiaavila48]

Their staff are amazing. Kind, thoughtful, helpful, they individually go out of their way to not just tell you where something is, they TAKE you there to insure they remembered correctly. They take back everything regardless, with a smile. I recently read a Consumer Reports (if I remember cotrectly) article, where CR did a blind test that compared a number of store name brand common foods and wine. The vast majority of products that consistently won was the Costco Kirkland brand, including wines. ❤

[@sktoh4469]

On our long road trip from BC Canada to Arizona last year, we made stops at Costco for gas every single day. Same thing on the trip back.

[@courtneymc33]

Once worked for an insurance company, they NEVER advertised but were always growing. They were partnered to supply insurance through Costco almost lol business was Costco or word of mouth, both created great long term customers.

[@anthonyfaiell3263]

It's the age old saying, "When you are rich, everything comes free." Costco built a dynasty, now they can just exist with little to no effort and profit extensively.

[@LesbianLoki]

Hell, the gas perks alone is worth the membership.

[@kahuna1247]

Let's be honest... Their hotdogs got them over the line 😋

[@josefg5212]

And the roasted chicken.

[@iluminameluna]

There still are programs in Central America. My acquired extended family are members in El Salvador.

[@unlimitedrabbit]

😩

[@SharonRepici]

We shopped there when they were Price Club with a hot dog cart in front of the store. Now I have to drive too far and the stores and parking lots are always crowded.

[@christophernoia5197]

Their pizza is awesome and it's still 9.99 for a whole pie.

[@llanierlv]

All without commercials?!

[@lordhosk]

You are watching a costco commercial right now. Most of these guys content is costco ads.

[@jonmaster5000]

@@lordhoskall word of mouth

[@llanierlv]

@@lordhosk I was referring to paid sponsorship by Costco. Word of mouth and public opinion are the best free advertising ever created. It makes and breaks businesses every second of the day.

[@bananajoe9951]

The fact that the owner and CEO is adamant to keep the price of Costco food where its been for decades ($1.50 for a Hotdog or slice of pizza and a drink) makes me happy to be a Costco customer. Most places charge $6-8 dollars for a combo now.

[@DeniSoars]

As a nurse I get it. They didn’t play stupid to the fact that if you treat your employees well, and aren’t overly greedy you’ll have a successful business

[@mr.damagecontrol8500]

Love COSTCO and the fact that you can buy something there and then want to bring it back, you can even without a receipt. Fantastic!

[@darioalvarado6873]

If you don't have Costco in your retirement profolios, it's not too late.

[@wholeNwon]

I think that Charlie Munger would have agreed with you.

[@qpeocn]

Yup damn true

[@patknights1492]

It's crazy what a $1.50 hotdog combo can do

[@s14vko]

"Welcome to Costco, I love you" 😂😂😂

[@Barneyrubble241]

Amazing how there always seems to be a Costco employee around when you need one and there never seems to be one around at Wal Mart.

[@fluffytail6355]

Agreed. And Costco employees always know where stuff is while every Walmart employee knows nothing like it’s their first day at work

[@user-xn7di6je4l]

Even if you find one at Walmart, they act like you've committed the ultimate sin by asking for help. Death stare 💩

[@LK-hj1lm]

​@@user-xn7di6je4loooo, beat me to it!

[@tomcat8662]

You must have a very different Costco than the one I go to.

[@sunnymade678]

Walmart employees don't want to be bothered and let you know it.

[@keko7198]

Costco also pays really well and has good benefits which you can see with their staff. Never had a negative experience there besides there being too many people

[@eshellef]

I've been going down the entire catalog of Acquired episodes for months now. Only audio, I haven't seen any videos of theirs. It's surreal to see Ben and David speaking on video for the first time. Love it! 🤩

[@robimpo]

From a revenue stand point, Costco is a yearly subscription service more akin to a magazine publisher not a grocery store. They make VERY little revenue from actual sales vs supply cost and nearly all of their revenue comes from the member fees.

[@chrisyworkstoomuch]

Requiring a membership card priced out a lot of the would-be looters and thieves so Costco doesn’t suffer as much as Walmart does. 😂😂😂 And yeah. Their prices and products are great.

[@TheRealFacemanguy]

Walmarts losses due to theft is negligible and overstated.

[@frespects9624]

​@TheRealFacemanguy hell no it's not, if that was the case then they wouldn't be closing stores due to theft. There was a bereft one on the bad side of town where I live that got shut down to excessive thefr.

[@TheRealFacemanguy]

@@frespects9624 I don’t doubt your anecdotal evidence but you underestimate how massive Walmart is. Look it up their losses due to theft every year is around 3 billion dollars which makes up less than 1% of their annual income.

[@TheRealFacemanguy]

@@frespects9624 isnt it possible that it closed for other reasons as well? if it was on the bad side of town its likely their revenue wasnt great to begin with im sure theft doesnt help but overall to walmart theft is negligible. They do like to overstate the issue to deflect blame of poor performing stores.

[@frespects9624]

@TheRealFacemanguy I suppose but that was the reason they gave for closure and I'm sure it's at the very least a contributing factor

[@hmquan]

They treat their customers well, you can return almost anything without question, $1.50 hot dog & drink, workers are happy assume pay well “living wage”, affordable tire service and gas prices, great cash back with citi visa especially with gas purchase.

[@Rhaspun]

Yes with the cash back on gas. It pays for the membership and then some.

[@LupinLovebites]

"Welcome to Costco, I love you." ❤😂

[@bradenchurch552]

I love Costco. No bullshit, they have quality products, and their roasted chickens are impossible to beat for the price, they’ve gone over and above on returns for me and the employees are super nice.

[@truckstreestoys]

Costco is a shipping company. Your car is the final mile delivery vehicle. And your pantry is the final storefront.

[@thomasmccrady6172]

Boy is that a good analogy

[@cindycimetta3137]

Totally great take on what they are. Great company!

[@tomevers6670]

You car is the final mile delivery for every company that does brick and mortar. Costco also delivers. What you believe to be true is false. 😂 It’s like the response of a college kid, trying to sound smart by making an analogy that sounds good, but fundamentally flawed cause you have no understanding of the real world.. only unintelligent people would even value what you say. Who is looking in my pantry as a storefront? My relatives? You could stretch that with lies to fit what you’re try to say. But that’s a huge stretch.

[@tomevers6670]

@@thomasmccrady6172it’s horrible if you truly understand how these business work.

[@tgd02]

Well said!

[@mneri84]

The average transaction at Costco is about $400.

[@josyboo07]

I’m a Instacart shopper and I absolutely LOVE my Costco people. It’s crazy how some of them have 1988 on their name tags; the year they started with the company, some even longer than that. Definitely tells you something about the company! And they make pretty good money, bonuses, free memberships, etc. For a direct wholesale/ wear house company- they are doing it right 👌🏾.

[@ahegpbtrftcotu]

At 300,000 employees, that's basically equivalent to 1 of every thousand citizens. And they're nowhere NEAR the biggest. That's insane

[@collinsje5]

In 20 years of Costco shopping, I have never encountered a rude employee - and that is in the City of Chicago. Costco knows how to treat their people.

[@YouBetterCallSaul]

There isn’t a Costco within an hour an a half of my city…but if you cross the bridge into Canada just 20 minutes away - there’s 19 Costco’s within 2 hours of the border lol

[@jimc12]

I operate a semi truck and have done so over the past 20 years. The very few times I have unloaded at a Costco distribution center, it continues to amaze me how efficient they are. From the moment you check into the facility, to the moment you check out. I have never spent more than an hour, even with over 20 semi trucks being unloaded.

[@Jagshemasher]

The speed at which the checkout staff in Costco can process customers is amazing compared with local supermarkets. Their staff seem generally have a very good attitude and they bustle! Been a member for years - love the place.

[@DaRealGDollaSign]

I may be wrong but I remember hearing somewhere that their advertisement budget is almost nonexistent

[@shawnheidingsfelder8179]

That's the benefit of being a membership club. Word of mouth is the only advertising you need. If a member brings a non-member with them to shop, that person will likely buy their own membership. The store and the service is the advertisement.

[@zugzug6773]

the beautiful thing about costco is the memberships prevent rifraf so their isn't nearly as much shrink and the members pay for it

[@Ve453]

Shrink?

[@theone8425]

​@@Ve453retail lingo for theft

[@laurasmith9643]

Costco accepts food stamps.

[@fkbradley319]

​@laurasmith9643 is that an implication that people on fs are riffraff?

[@blahblah8037]

@@fkbradley319yes. They are. If they are not then they shouldn’t have food stamps

[@PrinceVelli]

Im happy yall are seeing numbers now, remember when yall were only getting less than 30 likes, thats discipline right there

[@mrmeekcreices]

Welcome to Costco, i love you 🤣🤣🤣 pops in my head eveytime i hear the word costco.

[@joeykramer7282]

Costco is awesome! Thoroughly enjoy going to Costco ever 1-2 weeks. Great products, great prices

[@tpkdm71]

I used to love it. But it got so busy and crowded that we began to dread trips there and would plan out trips around when it was dead rather than when it was convenient. We let our membership lapse about 5 years ago, also the time four of our five kids had moved out. With just three of us now it’s not worth the haste or 25 minute drive. We can get pretty much the same prices just buying smaller quantities when they are on sale at local grocers, and I don’t miss repackaging bulk meat into smaller portions. Plus my daughter and her BF have a membership if I do need something.

[@Rhaspun]

@@tpkdm71 When I go to Costco I always go right when they open. If I were to wait a couple of hours it will become hectically crowded at Costco. I'll buy their rotisserie chicken once a week. I use the chicken breast all diced up to make a hearty salad.

[@RIQs_World]

Who remembers the Price Club ?

[@birdythebird]

in Canada before Costco took over

[@ednise69]

I remember Price Club, then Costco came along.

[@dstanley9203]

Fun fact. Price Club is Costco. They merged as PriceCostco then rebranded all stores as Costco. Costco website even references their first store as the original Price Club opened in San Diego in 1976.

[@xiaoka]

We were 100% Price Club til they merged.

[@codycast]

@@dstanley9203San Diego born/raised. I refused to call them “Costco” for the longest time. I’d say “price club” :)

[@thekoshertourist]

Wow....no clue they did 230B annually

[@azralast4713]

Hi, Costco deli worker here- Us employees stick around because we're treated very well, have better pay and benefits compared to most places around that don't require experience/degrees, and also (mostly) flexible schedules for college kids (like myself). I will say though, there's a reason Costco makes the money it does with so few employees in comparison. Next time you're in the store, just give the fresh departments a look and see how fast they're going. It's like that all day, every day. Go to another store, like Walmart, and you'll see that we work much faster. We get worked to death sometimes, but it's still well worth the pay and benefits we get from the job. Edit: I'd like to add that each employee is selected carefully selected. If you're lazy, you'll be let go within the first 90 days without question. All employees you see are almost certainly very hard workers.

[@212C10]

Costco member since 1999. Love their Kirkland line of products and the cashback from executive + Citi Visa

[@t5ruxlee210]

I miss Price Club. They moved much smaller batches of awesome priced stuff. If you did not go in two or three times a week, you completely missed about half their offerings.

[@nitemoves3157]

I want the Coca Cola products back in the fountain at the food court, also, I think bringing back the chocolate dipped, nut covered ice cream bar should make an appearance again!

[@BEAUTYnIQ]

that is kne thing abt costco.. sometimes their items are temporary.. if you love it go back and get more because it maybe discontinued..

[@boredom2go]

Costco's biggest innovation is that they get people in and out as quickly as possible. Every other retailer goes out of its way to waste your time with long slow lines and pointless questions at the register.

[@Toadaboticus]

Costco had the best brand recognition strategy in my region before they left. Every elementary, middle and high school student got backpacks and supplies for school every year.

[@sadface7457]

Costco is very slow growth. It's very hard to get the investment to match Costco.

[@BigRed2]

You are clueless

[@houserental5424]

@@BigRed2about which part? He is correct the PE ration doesn’t make sense relative ti growth. Likely the Buffet effect

[@sadface7457]

@houserental5424 I hate when some says I am wrong without saying why.

[@BigRed2]

@@sadface7457 Costco earnings has grown 500% over last 14 years and has reliable steady growth

[@jichaelmorgan3796]

A lack of short term growth does not mean it is not a strong company in the long run. Many companies sacrifice long-term for making investors happy in the short term. It eventually catches up because the if all the leadership, strategists, and bean counters are hired in order to be hyper focused on the short term to make the investors happy, of course they are going to lack long term vision. Everything has a tradeoff.

[@angelabolton4478]

I love Costco! Satisfied member right here.

[@GreenPaganWitch]

I just because a Costco member about 5 months ago, and I LOVE IT. I do as much of my shopping there as I can, and it has SIGNIFICANTLY cut my grocery bills.

[@lord_riman]

Current Costco employee here, and yes they treat us amazing. Full health insurance and great pay are just the beginnings of what they do for us.

[@aliceflanagan3672]

Greatest store. Their employees like it. That says a lot!

[@jmassey7125]

I believe that Costco does so well because they pay their employees very well and don't have any turnover and that is why I shop there

[@toomanymarys7355]

Thry pay their employees well because they need very few.

[@jmassey7125]

Costco has always been a well-oiled machine

[@frespects9624]

​@@toomanymarys7355and because it benefits their customers. They consistently have good experiences, with very infrequent bad experiences.

[@theillitistpro]

"Welcome to Cotco." "I love, you."

[@briansantarossa2331]

Trying to get a job at Costco where i am is borderline impossible, employees dont leave often lol

[@chipdoctorkent]

I only shop at Costco because they actually treat the employees fairly

[@MoeFokah]

True. They'd be my first choice, but a Sam's club is much closer

[@ObservationofLimits]

Almost all companies treat their employees fairly. Otherwise no one would work there.

[@114lak]

wish we had a Costco

[@Azide_zx]

Its unfortunate that many areas of the US just do not have any costcos nearby

[@linuxman7777]

It is a shame that the wholesale clubs are only in Big cities. I live near Pittsburgh and shop at Costco, Sam's, and Bjs

[@Azide_zx]

Sam's club has some locations in some somewhat smaller areas (small cities/large towns) within central pennsylvania like altoona, state college, and muncy and im sure some similar regions in other states too. You just have to have a location that has a far reach and high demand

[@sonyaskinner9670]

Costco kills it. It's a business model to follow! ❤

[@dennisboyd1712]

COSTCO Has been one of the Best Stock Picks I've ever made $$$

[@thegoldstandard55]

Relying on memberships for most of the profits requires a big moat to start with. It took Amazon enormous losses to get enough prime memberships to be profitable. Costco is what it is today because they merged with Price Club in the 90s and with further consolidation of with PACE being acquired by Sam's Club and Fedco going out of business.

[@autobreza7131]

I do miss Fedco… Chocolate dipped vanilla cones.

[@ObservationofLimits]

Yea Amazon roped everyone in with that 2-day shipping and then dropped it like it was hot

[@bgrimlan]

Wow... talk about old memories. I remember going to Fedco regularly when I was a kid. Still to this day "Price Club" pops into my head before having to catch myself and having to convert it over to "Costco".

[@mineking11]

Unlike most other big companies, Costco ALSO takes care I’d their employees

[@scoobtoober2975]

they have good foods at better prices. top notch service. I had my kids with me, took them and the groceries to the car. Brought my sleeping little one into her car seat. I left the darn whole prime filet strip in the cart. They tried finding who it belonged to. Someone brought it back inside. then they have to " throw it away" they gave me a new one no questions no bubbles. no troubles. My family has been a member no less than 20 years, probably 30. Do it right. Find foods with less garbage in it and offer a fair price. It will sell no problem Walmart listen up. Get the garbage out of your dumb stores. Do not do the + lines only. You will fail faster.

[@Ed70Nova427]

They sell quality stuff. I've never bought anything from Costco that wasn't good quality, whether it's food, shelving, tools, lawn care, computers, monitors, clothing, or delicious fruits. Everything, all good stuff. If they sold crap like everyone else, they'd be no better off then anyone else.

[@doug3318]

Costco makes 75% of its profits from membership fees - the products they sell are near or even sometimes below cost to keep people paying those fees. Walmart and other retailers make profits from direct CPG sales, so the business models are different. And Amazon well… they have AWS and other diversified revenue streams beyond retail sales.

[@TyuHeyheyhey]

No way.

[@TheBajamin]

They don’t at all. Go look up their financials. You guys just say shit you heard. 2023 earnings report, page 3. “Net sales 237.7 billion… revenue from membership fees was $4.6 billion…”

[@doug3318]

@@TheBajamin revenue and profit are two different metrics

[@TheBajamin]

@@doug3318 I’m very aware. 75% of their profit isn’t derived from their fees revenue. The numbers make no sense. Go read the report. Their profit is between $26-$30 billion…. So even if membership fees were 100% profit (they aren’t) it still doesn’t make sense.

[@bman6502]

Regardless, the membership dues are 99% profit.. I’ll give you one percent for expenses to manage the membership dues..

[@JacobMoretti-NotABot]

And then there’s single folks like me for whom Costco is useless

[@frespects9624]

Not necessarily. Good selection of quality products. Buy in advance

[@cliftonmcnalley8469]

Our small incorporated suburb town approached Costco, asking them to build a store to help increase the tax base. Took a few years to convince Costco to do so. After their first year, they truly regretted not building a larger store.

[@cari0783]

I love Costco. Will be a lifetime member. Their car insurance and customer service is top tier.

[@gruntslayer3524]

I love how Costco people act like Sam’s club doesn’t exist “no one else does Costco”

[@bman6502]

Everyone complains about Walmart, but everyone goes there.. and they’re really not that cheap…

[@cirrustate8674]

I don't go to walmart. I refuse.

[@deejayyy1681]

I don't shop at Walmart. Never have

[@tomcat8662]

They’re pretty cheap. And you don’t have to buy a massive quantity of an item like you do at Costco. But I try to keep my trips there to a minimum because it’s a madhouse.

[@frespects9624]

I Don't go to Walmart simply because the people that shop there, especially at the Walmarts in the poorer areas, tend to be sketchy. I've seen so sketchy shit at Walmarts 😂

[@DoubleDogDare54]

But Walmarts are everywhere and are convenient to get to. I'd love to joint Costco but the nearest one to me is over a half hour away via highway - and I live just outside of Chicago, not out in the boonies.

[@litlclutch]

They treat their employees well... I haven't worked for Costco for like 20 years and I still think and feel they are great employers... also their ice swirl is the shit and don't get me started on their hotdogs... SO GOOD!

[@michaeldodd3563]

“Welcome to Costco: I love you.”

[@EthanHyland]

Sam's Club is way closer to me, so my family has a membership there. Costco gets talked about SO much more on social media; I've never been to a Costco before.

[@Bob-lo2nb]

We just go to both

[@EthanHyland]

That's neat. 🤣

[@Hobbsthetiger]

My parents always went to Costco I think to get away from Walmart haha. now my roommate works for them and we get a discount at Walmart/sams clubs so sams it is.

[@EthanHyland]

@@Hobbsthetiger Actually, both of my parents work at Walmart. I don't know if their discount works at Sam's Club. I don't believe it does. Their discount at Walmart is for everything but food at Walmart.

[@Hobbsthetiger]

@@EthanHyland He’s a trucker so maybe it’s a different discount ! I do miss Costco pizza though

[@OzWorldChannel]

Thats easy: There are shelves to stock at COSTCO. They probably have more pallet jacks and stackers than people.

[@evansradmom]

Fun fact. I lived down the street from the first Costco (then it was called Price Club) on Moreno Blvd. in San Diego CA. The Price family owned it and sold the company. That is how Costco came about.

[@kathyrall813]

I have been a Costco customer for 20 years. The same employees that opened the store are still there and they are the best.

[@conradblume4274]

Does everyone with a camera have to make a Costco video?????

[@samfish6938]

it seems so

[@vivianamcdonald1910]

Do you have to watch it? Amd comment on it?

[@whitemailprivilege2830]

It’s in the terms and conditions agreement when you buy a camera from Costco.

[@robovac3557]

​His comment is as valid as any. ​@@vivianamcdonald1910

[@mandywhite6186]

Costco just isn’t a bargain anymore

[@orlock20]

Walmart sells Costco/Kirkland water. When stores are buying Costco products to sell themselves, Costco is going to stay in business.

[@Playingwithproxies]

Where Costco has kept their prices low better than anywhere else 😅

[@Matt-wf7ry]

They still are a bargain but even when they aren't the cheapest possible price available, people want the bulk purchases to avoid having to buy something repeatedly. People love being able to buy a package of toilet paper and paper towels and not have to worry about it again for quite a long time.

[@virginiafry3642]

Bought my refrigerator there. The water filter broke after the first time changing it. They say warranty was through kenmore but kenmore subcontracts to Sears and Sears subcontracts the work out to another place. It’s been MONTHS waiting to get help.

[@AnneFromAccounting]

One of my favorite stock purchases of all time