Are there any Costco apostates here? - Page 4 - Chevelle Tech
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post #46 of 52 (permalink) Old Feb 22nd, 19, 2:53 PM
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Ben
 
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Re: Are there any Costco apostates here?

Costco makes their money off memberships, not sales. That means everything they do is designed to generate member value.

Profit is capped at 14% on everything, so regardless what they buy something for, they will never make more than that much- which is why in some cases the costco prices seem amazing, because other vendors are inflating their costs to well beyond 100% profit in some cases.

In other items prices seem to rise and fall- the reason for that is because costco buys (and sells) in such bulk and so fast, the pricing reflect a much more accurate view of market cost.

Other stores that buy and then take 6 months to sell off a certain item, by the time they are ready to order again the price may be different, but it "appears" more stable because of the time it took to sell it off.

This is true of gas as well... costco buys and sells in such bulk that the cost of gas typically stays lower than other stations that have to buy a supply that takes them longer to sell. When gas prices rise and fall, costco is one of the first to reflect the fallen price, again because they are buying it at the new lower price while everywhere else still has tanks full of gas purchased at the higher rate.

Costco also offers a lot more than just the items on the shelf, there are member services, deals taht have been made, again with member value in mind.
The costco auto buying program
The Costco mortgage/refi program (which is fantastic btw, i've used it twice)
There are others as well.

The products INSIDE costco, sure you can get 25lbs of macaroni- but plenty of items on the shelves you'll notice that for the same price for the same item elsewhere, there is soemthing extra added in. Extra toothbrush heads, extra towel added, extra video game controller, etc etc... Costco actively pushes their vendors to add those extras to help provide that added value that you get by buying at costco.

The kirkland signature products as well are often made by the same MFGs as the brand name stuff...

How do i know this stuff? I work for Costco corporate.

Is Costco perfect? not a chance... I too prefer to use a local tire ship over the costco tire centers- But at the end of the day Costco is working FOR their members.

If you don't see any value in a costco membership, then don't be a member- Its not being shoved down your throat.

You may notice that Costco does not advertise on TV or anywhere else. There are no costco billboards on your drive home. There are no catchy costco jingles on your radio....

Thats by design. Keep it simple, and provide value to our members.
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Ben R.

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post #47 of 52 (permalink) Old Feb 22nd, 19, 2:56 PM
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Re: Are there any Costco apostates here?

Tony
The sidewall on the tires said 35 psi max. I have no idea what the actual pressures were as my tire gauge only went to 65 psi. They were inflated to at least that pressure. Could have been 100 psi for all I know. So in short my experiences with Costco as far as tires go are enough to keep me from going back. Especially when I can get better service from a private tire shop.
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post #48 of 52 (permalink) Old Feb 22nd, 19, 3:03 PM
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Krister
 
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Re: Are there any Costco apostates here?

X2 on all the positives that have already been said. I have been a Costco Member since 2002, and its 2 miles from my house. Shop there at least once or twice a week. All our gas is purchased there, and they have 93 octane which the Chevelle uses.

Two positives not mentioned yet. One is, if your rebate does not cover the difference in the regular membership fee and the Executive one, they will credit you the difference. Weve had the Executive one for years and get about $700 back each year. Second, Costco spends a lot of time researching, reviewing the items they carry. So, they might only have one or two types of lamp, chair or granola, but they have done the homework for you. They want only the best products in their store that are good value and will sell. Last month I bought four batteries, Interstate brand, all had longer warranty then the same Interstate battery offered else where and was 40% cheaper at Costco. That one savings alone paid for my membership.
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'66 SS, L34, 4spd (M21), 3.73 posi, #'s Matching, G 5C
- like I would have ordered, but I was 2

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post #49 of 52 (permalink) Old Feb 22nd, 19, 7:16 PM Thread Starter
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Re: Are there any Costco apostates here?

Ben: thanks for the input. My original post was about how I have been a member for over 20 years and have bought many good things at Costco. Even back when it was "Price Club". In recent years I have been shopping less and less at Costco, so I am looking for ideas on what I am currently missing. Things like eyeglasses I have overlooked; that alone is a real money saver. The fact that I do not have to wait for a super-sale at the local grocery to get a good price on things is another. Probably if I did a little more planning in my purchases I would find myself doing more business at Costco.
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post #50 of 52 (permalink) Old Feb 22nd, 19, 7:56 PM
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Re: Are there any Costco apostates here?

Quote:
Originally Posted by blm View Post
Tony
The sidewall on the tires said 35 psi max. I have no idea what the actual pressures were as my tire gauge only went to 65 psi. They were inflated to at least that pressure...
I definitely would have complained VERY loudly if that had happened to me...

I still use America's Tire (great service), but mostly for the Chevelles or my truck (when I am not buying ordinary, replacement tires)...

Once you go RAT, you never go back...
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post #51 of 52 (permalink) Old Feb 22nd, 19, 7:57 PM
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Re: Are there any Costco apostates here?

Quote:
Originally Posted by RAMBO View Post
Costco makes their money off memberships, not sales. That means everything they do is designed to generate member value.

Profit is capped at 14% on everything...

How do i know this stuff? I work for Costco corporate.
Excellent input Ben...

Once you go RAT, you never go back...
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post #52 of 52 (permalink) Old Feb 24th, 19, 12:33 PM
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Re: Are there any Costco apostates here?

Quote:
Originally Posted by RAMBO View Post
Costco makes their money off memberships, not sales. That means everything they do is designed to generate member value.

Profit is capped at 14% on everything, so regardless what they buy something for, they will never make more than that much- which is why in some cases the costco prices seem amazing, because other vendors are inflating their costs to well beyond 100% profit in some cases.

In other items prices seem to rise and fall- the reason for that is because costco buys (and sells) in such bulk and so fast, the pricing reflect a much more accurate view of market cost.

Other stores that buy and then take 6 months to sell off a certain item, by the time they are ready to order again the price may be different, but it "appears" more stable because of the time it took to sell it off.

This is true of gas as well... costco buys and sells in such bulk that the cost of gas typically stays lower than other stations that have to buy a supply that takes them longer to sell. When gas prices rise and fall, costco is one of the first to reflect the fallen price, again because they are buying it at the new lower price while everywhere else still has tanks full of gas purchased at the higher rate.

Costco also offers a lot more than just the items on the shelf, there are member services, deals taht have been made, again with member value in mind.
The costco auto buying program
The Costco mortgage/refi program (which is fantastic btw, i've used it twice)
There are others as well.

The products INSIDE costco, sure you can get 25lbs of macaroni- but plenty of items on the shelves you'll notice that for the same price for the same item elsewhere, there is soemthing extra added in. Extra toothbrush heads, extra towel added, extra video game controller, etc etc... Costco actively pushes their vendors to add those extras to help provide that added value that you get by buying at costco.

The kirkland signature products as well are often made by the same MFGs as the brand name stuff...

How do i know this stuff? I work for Costco corporate.

Is Costco perfect? not a chance... I too prefer to use a local tire ship over the costco tire centers- But at the end of the day Costco is working FOR their members.

If you don't see any value in a costco membership, then don't be a member- Its not being shoved down your throat.

You may notice that Costco does not advertise on TV or anywhere else. There are no costco billboards on your drive home. There are no catchy costco jingles on your radio....

Thats by design. Keep it simple, and provide value to our members.
Something most others haven't mentioned, the employees. Most seem happy to be there. I've never encountered a grumpy employee, and have always been helpful.

Here in Ontario, Costco accepts debt, MC, and cash.

Daren

Everything is a hammer, some hammers are better than others.


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