Jose Manuel Ruiz on LinkedIn: HAPPY 10th BIRTHDAY COSTCO SEVILLE !!!   In 1983 the first Costco… (2024)

#CNN #FakeNews #COSTCO most popular seller - not #GoldBars, not even #RotissiereChicken - it's 1 Billion rolls of #ToiletTissue each year. CNN #AdDisguisedAsNews for promoting both the Gold Bars and the Chicken carcassdoubtful 50,000 gold bars in last quarter ( = 3 months ) outsold the chicken um, #CommonSense would tell you that Chicken @ $4.99 would sell more than Gold Bars at over $2,000....Costco supposedly 128 million members as matter of fact only 1 single Costco location would only need to sell 500 Hotdog combos a day to sell 45,000 in a quarter year ( 90 days ). #NathanielMeyersohn #DoTheMath Do your Homework and do your research and ask tough questions when common sense tells you otherwisebiggest profit is also the toilet tissue ( see link in comments ) and worst profit would have to be selling gold bars at $2000 near market value - if the gold bars aren't at market value - only morons would buy them article leads people to believe Costco members are running around buying gold bars like rotisserie chickens with their heads off Costco also is probably selling more soap bars and chocolate bars more than Gold Bars quick #FactCheck indicates only 25k - 50k members out of 128 Million could have bought gold bars ( for $100 Million in sales at 2 bar max per customer ) - way less than buy the COSTCO #HOTDOG & Drink combo for $1.50 in a week#CNNbusinessmeyersohn bio (in comments ) shows experience as doing an " #Enterprise " story on the $4.99 chicken at Costco before... I'm guessing Meyersohn has never even been inside a Costco I'm also guessing there are hundreds of other products at Costco that sold 50k units over 3 months by among 128 Million potential members buying their regular favorite staples - um, like the zillion cases of bottled water that moves off the floor every day.Maybe a better story would be to find out where Costco is getting the gold bars, when they are buying them - and if Costco execs are moving any gold market by buying huge quantities of gold during the year and if the execs are personally trading personal gold investments based on when Costco makes purchases

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Costco made a $3B investment in price image. Price for hotdog combo should have climbed 335% over last 40 years but instead they have been stable for 40 years. Costco hot dogs are a vehicle for Costco to shape its price image. It gives you a peace of mind that you are at a place with low prices, regardless of the overpaid products 2 aisles down.They didn't just keep pricing low by taking a price cut and taking huge losses, instead:1) They shrank drink sizes2) They bought production in house3) Kept choices at minimumIn a world where every retailer is struggling with its pricing strategy and image, we have yet to hear complaints about pricing at Costco. It took 40 years of prudent investment in this strategy. It takes a lot of discipline to execute something like this. Costco is not the only one: 1) Trade joe did it with bananas2) Ikea does it with their food court3) McDonalds with dollar menuHow much are you willing to invest in your price image ?If not then its worth considering. When done right its an investment that keep giving....... ----------------I write about #pricing #discounts #revenuemanagement and #careers and share actionable pricing techniques everyday. Join 9000 other pricing professionals.

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(CNBC)Costco is well-known as a place to get bargain prices on any variety of items, from food to luggage to appliances to gold bars.Wait, gold bars?Yes, the retail warehousing giant is your one-stop shop for 1 ounce gold PAMP Suisse Lady Fortuna Veriscan bars, handsomely detailed and ready for purchase.They’re available for the bargain price of … well, you have to be a member to know that, but apparently they were selling for a little shy of $1,900 recently, according to chatter on Reddit. Spot gold most recently was going for $1,876.56 an ounce as of Wednesday afternoon.Regardless of the price, gold is selling like hotcakes, judging by comments Tuesday from Costco Chief Financial Officer Richard Galanti. Speaking on the company’s quarterly earnings call, Galanti said the bars are in hot demand and don’t last long when in stock.“I’ve gotten a couple of calls that people have seen online that we’ve been selling 1 ounce gold bars,” he said. “Yes, but when we load them on the site, they’re typically gone within a few hours, and we limit two per member.”A couple of important points from that thought: The bars indeed are only available online, and only if you’re a Costco member, which costs either $120 or $60 a year, depending on which program you pick. The retailer also is limiting the purchases to two to a customer, meaning it would be pretty hard to build a position that would lead to financial security.Costco seems to have accelerated its offerings of dried foods and other survivalist goods at a time when worries about the future are running high. For example, the company markets a 150-serving emergency food preparedness kit that could come in handy, you know, just in case. Gold meshes with that type of product.#costco #goldbars #survivalistgoods

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I went to Costco today, and I couldn’t find my favourite brand for coffee filters. So, I approached an employee to ask if they still have the brand I’m looking for. “There’s been some strikes happening in the States, so we’re behind in our orders. I don’t think we’ll get your brand anytime soon…*word for word what this employee said to me coming up* 🌟🤩… BUT, considering you’re a member, please feel free to try a different brand, take the product for a spin, and return it if you don’t like it.”I’ll let you take a wild guess whether I bought coffee filters from Costco or not. Here are a few observations I had from our conversation:✅ Customers want two things: peace of mind and convenience. Costco’s employee I just mentioned gave me peace of mind. ✅ Although I believe this employee was a superstar, I still have to imagine that Costco’s management did something for him that motivated him to be unreasonably hospitable. Why do people like working at Costco? It made me curious. From what I understand, it’s their benefits package❓✅ Selfishly enough, this is a question I walked away with: how can I make sure that my truck drivers act the same way that employee did? If they are delivering LTL orders, for example, how can they create memorable experiences with our customers? Thank you, Costco, for reminding us that unreasonable hospitality exists, and making me think about how I can apply the same philosophy to my business 🙏🏼#dailygrowth #logisticsolutions #unreasonablehospitality

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20 Facts Of Costco 40th AnniversaryShocker!! I only got 10 questions right! !😱🙀How many can you answer correctly?* When was the first hot dog cart introduced?* Bonus: In which warehouse was it located?* Super Bonus: What was the original price of the hot dog and soda combo?* What was the price of the first membership available at #01 Seattle, Washington?* What was once the only way to qualify for a Price Club membership?* In what year did the first gas station open?* Bonus: At which warehouse was that first gas station?* In what year did Kirkland Signature™ debut?* What was the first item sold with the Kirkland Signature label?* The day #01 opened, Jim asked employees to do what to make the warehouse look busier?* In what year was Costco Travel introduced?* Bonus: When were travel purchases included in the annual 2% Reward?* The Executive Membership debuted in what year?* Costco celebrated the opening of its 500th warehouse in which California city?* Craig Jelinek was named president and CEO in what year?* To help maintain the price of $1.50, Costco opened what type of facility in 2011?* The company officially changed names from Costco Companies Inc. to Costco Wholesale in what year?* In 1995, Costco rolled out one of its hottest items to date. Which product is still flying off our shelves?* Costco’s first car wash opened in what year? * Bonus: At which location was the first car wash?Costco Wholesale #costco #kirkland #signature #kirklandsignature #hotdog #costcotravel #travel #costcogasoline #toptier #gasoline #rotisserie #chicken #KScheese

What do you think is the real reason that Costco’s Hot Dog And Soda Combo Is $1.50 even after 37 years? I don't think I have ever been more in love with a company and its business model more 🥹584 locations → United States123 million members→ February 2023304,000 employees → Global$222.7 billion of revenue→ 2022 Read on⬇️Costco is the sixth-largest retailer in the world and the third-biggest in the US, behind Walmart and Amazon, and here's what's fascinating:Its origins can be traced back to Sol Price, who pioneered the concept of a membership-only warehouse club in 1976 with Price Club. Price Club was initially targeted at small businesses but later expanded to serve individual consumers as well. Price Club merged with Costco in 1993, creating the largest warehouse club chain in the US. Costco’s co-founder and former CEO, Jim Sinegal, was a protégé of Sol Price and learned from his mentor’s philosophy of putting customers and employees first. Sinegal was known for his frugal and humble leadership style, often wearing a $20 watch and driving an old Volvo. He also paid his workers well above the industry average and offered generous benefits, resulting in low turnover and high productivity. (for comparison, avg $26/hr vs Walmart where it was about $20/hr)Costco’s business model is based on four simple pillars: low prices, limited selection, high quality, and high volume→ Costco keeps its prices low by buying in bulk, eliminating intermediaries, and charging an annual membership fee (you cannot even enter without one!)One hack: Ask your friend who is a member to buy you a Costco Cash Card;)→ It offers a limited selection of about 4,000 items, compared to 40,000 in a typical supermarket (and in fact, they have been reducing it further) → It focuses on high-quality products, often under its own Kirkland Signature brand, which accounts for about a quarter of its sales. (Amazon Basics, anyone?) → And it generates high volume by attracting loyal customers who shop frequently and spend more per visit than at other retailers (only multipacks!)Costco is also known for its innovative and unconventional practices, such as selling hot dogs and pizza at its food court for $1.50 since 1985, selling luxury items like diamonds and caviar at deep discounts, and refusing to advertise or mark up its products more than 15%. These practices help Costco create a sense of value and excitement for its customers, who often discover new products and deals every time they visit. Visit one next time you're in the US, you won't be disappointed :)Costco is not just a retailer, but a cultural phenomenon that has millions of fans around the world. It is also a case study of how a company can achieve remarkable success by staying true to its core values and mission. If you are interested in learning more about it's history, business model, and more - sharing a couple of links in the comments below ⬇️#businessgiants via The Founder Folks

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Sam’s Club’s War Against Costco Started With $1.38 Hot Dog Combo (Article from BusinessWeek)"The price cut tapped the rival’s playbook of targeting upscale shoppers to expand its business again.In November, Sam’s Club took aim at one of the most iconic prices in US retail. No longer would the membership warehouse chain match Costco Wholesale Corp.’s $1.50 hot-dog-and-soda combo. Instead, Sam’s Club said, it would charge just $1.38.The strategic moves that Sam's Club that follow the playbook of Costco and something new is insightful and of course the result from the moves, and of course, as many business supply and compete directly and indirectly with Sam's Club and Costco, it is interesting to see how it is impacting your strategies 1. "Aggressive pricing is only part of McLay’s ­strategy to ­reinvigorate the chain. “We want to create a member-obsessed culture,” she says, using a phrase she’s made into a mantra inside the company.""Now it’s trying harder to woo more upscale shoppers, thereby boosting the number of customers paying the annual fees that are the cornerstone of the ­business. So Sam’s Club has ­streamlined its ­product ­assortment and invested heavily in higher-­quality goods—in effect becoming more like ­arch­rival Costco."2. "Costco, which declined to comment on its rivalry with Sam’s Club, ­dominates California and other affluent markets on both coasts. Its customers ­typically earn more than $100,000 a year, compared with about $80,000 for Sam’s Club and BJ’s, according toJPMorgan Chase & Co.With wealthier shoppers and high customer loyalty, Costco averages twice as much revenue from its US stores as Sam’s Club."3. "McLay spotted an opening in the early days of Covid-19 by offering greater convenience. Americans were buying all kinds of goods but didn’t want to spend much time in stores. Within months, Sam’s Club rolled out curbside pickup, which has proven popular. Costco has remained wary of such services, saying customers who enter its stores tend to buy more."4. "Technology is another area where Sam’s Club sees a potential advantage. Emblematic of its efforts is Scan & Go, which lets a shopper use the Sam’s Club app on their phone to buy products while shopping in the store, avoiding checkout lines. First rolled out in 2016, the service is now used by more than a quarter of the retailer’s customers and was recently expanded to the stores’ cafes and gas pumps. Costco has yet to offer a comparable service."5. "Perhaps none of that would have mattered much without a revamp of Sam’s Club’s merchandise. ""McLay also stepped up the focus on quality at Member’s Mark, Sam’s Club’s answer to Costco’s extremely popular house brand, Kirkland Signature. That meant investing more to increase quality, and in some cases jettisoning even popular items that didn’t meet its rising standards."#costco #samsclub #treasurehunt

Most know Costco for the $1.50 hotdogs and the story of Costco co-founder Jim Sinegal telling the current CEO "if you raise the (price of the) effing hot dog, I will kill you", but I don’t think people understand the level of operation and thought that goes into each Costco location:- They aim for a low ~14-15% markup on most of their products (for comparison — Walmart aims for ~45%, while Ulta / Sephora aim for ~70%)- There are only 4,000 SKU’s (products) per store and ~40% of those are curated for each region (most grocery stores have 30k+)- Costco starting pay rate is $18.50/hr, and employees get 1.5x on Sundays- Rotisserie chickens are sold at a loss and on avg only on shelves for ~2hrs per day- Was the first company to grow from zero to $3B in sales in less than six yearsLong live Costco!

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The Masters and Costco Wholesale, two of my favorite things, share 1 thing in common: unparalleled pricing strategy. Both have premium products with dedicated fanbases. As such, they can charge a hefty sum for access to their product. Yet they get all this credit for keeping their food prices low.COSTCO - memberships are $60-$120/year but let's be honest, you aren't walking out of there with a cart <$200 unless you have some magical willpower. Depending on how many times you go, Costco is making hundreds or thousands of dollars off of each member every year. Yet what's the story that's always written?"Why Costco will never get rid of the $1.50 hot dog combo!"That's right, they make billions every year, yet the story is about the underpriced hot dog.THE MASTERS - If you can win the lottery, tickets aren't too bad. If not, you'll pay thousands for a ticket to the event, thousands on airfare and lodging, and even more for merch. All that but yet the experience is truly a tradition unlike any other. Scroll through Masters stories this week and you'll inevitably see the "Prices keep going up except for concessions" article. Where else can you get a Pimento Cheese sandy for $1.50 or a Georgia Peach Ice Cream Sandwich for $2.50?The point is both these brands have built an immense following but the story isn't about the admission price, its about the amazing deal once you get in. Just an absolute masterclass in pricing strategy and narrative framing.

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Retail Today / Retail Renaissance: Costco’s not so secret weapon, “Kirkland Signature”, the private label powerhouse. The envy of the retail world! #costco #kirkland Yes, WalMart has their new premier line “Better Goods”, Target’s “Good & Gather”, even Trader Joe’s and Aldi are known for their private brands. #walmart #target #traderjoes #aldiBut nothing comes close to “KIRKLAND”, this asset is worth $60 Billion Dollars in sales a year! 💥See attached, it’s a “who’s who” of vendor partners. From nuts, to socks, water, wine, apparel, peanut butter, olive oil to booze. #vendorpartners #apparelindustry“Kirkland Signature” spirits, gin, vodka, bourbon, whiskey, even single malt whiskey from Scotland. Costco is the largest seller of alcoholic beverages in the U.S. at $7 Billion Dollars! Costco’s business model just keeps growing stronger, with a people-first mentality and product driven. With 876 stores worldwide, producing +$260 Billion Dollars in sales. #peoplefirst #product PEOPLE - PRODUCT - PRESENTATION - PROCESS = PROFITABILITY Sales Trend: 🔥🔥🔥February +5%March +8%April +6%#retail #retailtrends #retailindustry #groceryindustry #wine #spirits #shoppingexperience #privatelabel #TopRetailExpert

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