179 replies to this topic

[granto]

FWIW

Being a new Costco vendor I was told that Costco does not intend to make a lot on the mark up of product, the sheer volume of sales takes care of that. Most of their money is made by the membership dues. We pay those dues to have the ability to obtain product at good prices. Model numbers may vary to identify the originating retailer.

I can tell you that they are most likely breaking even on our cases but do not mind as it is a service that is being provided to the members that pay there yearly dues.

According to the shareholder report, the average is 14% mark up.

[Bill Z]

According to the shareholder report, the average is 14% mark up.

So, if that is true, then the previous statement

Most of their money is made by the membership dues.

is hogwash, cuz as soon as the average member spends $357.14, then the 14% mark-up matches the $50 annual membership. Yes, dues are pure profit so to speak, but they make their money on the volume of goods that goes through their stores.

[sty10k]

You're talking markup, not margin. The company does not see all of that 14% as profit; advertising, rents, salaries, utilities, etc. all come out of that 14%. So the actual profit is much, much less. (Unless of course the other poster is confused and meant 14% margin on all products sold, in which case nevermind.)

[Bill Z]

You're talking markup, not margin. The company does not see all of that 14% as profit; advertising, rents, salaries, utilities, etc. all come out of that 14%. So the actual profit is much, much less. (Unless of course the other poster is confused and meant 14% margin on all products sold, in which case nevermind.)

I know, but the average person I'm sure spends much, much more than $357 per year there. I know my gas purchases alone way exceed that amount and even though I typically only shop there every other month, quite often a single visit hits the $300 mark.

I'm sure i typically spend $2000 or so per year there, and I know the one year I paid for executive membership, i spent $3500 in one month on a handful of big ticket items.

And I bet I'm in the bottom tiers of typcial membership on spending there.

[a little bean]

I know, but the average person I'm sure spends much, much more than $357 per year there. I know my gas purchases alone way exceed that amount and even though I typically only shop there every other month, quite often a single visit hits the $300 mark.

I'm sure i typically spend $2000 or so per year there, and I know the one year I paid for executive membership, i spent $3500 in one month on a handful of big ticket items.

And I bet I'm in the bottom tiers of typcial membership on spending there.

Of course, no one makes money on gas. As far as I know, pretty much all stations sell it at cost and make money by luring you in to buy other things

[sty10k]

Found some numbers for Costco. (From Wikipedia, so as always, take with a grain of salt.)

Store sales for 2007 were $64.4b. Net profit was $1.1b. There are approx. 50m members (25m households). So the average sales per household for the year was approx. $2500. The average profit per household: $44.

[granto]

You're talking markup, not margin. The company does not see all of that 14% as profit; advertising, rents, salaries, utilities, etc. all come out of that 14%. So the actual profit is much, much less. (Unless of course the other poster is confused and meant 14% margin on all products sold, in which case nevermind.)

You are correct, and 14% is very very slim to run a retail company on, yet Costco keeps on rolling and growing.

[bunny]

No bunny, your wrong. Everything I stated was from the 2nd tier supervisor directly at Sharp. The products are made with the same specs but cheaper components to sell AT Costco at a cheaper price. They are the ones who showed me this on their website.

Please show me on their web site where theres a difference. Every specification is identical, down to the weight...to the ounce.

Of course, I have a little edge because I know two people on Avsforum who evaluated the sets closely and determined that they were the same. Same glass, same electronics, only a different colored case and model #. One got newer firmware on the costco one than the non costco one because they'd turned over all the old sets faster than the other retailer and gotten a newer version.

I would anticipate that the "2nd tier supervisor" would tell you what they said either because they were mistaken, or because they were toeing the company line that the warehouse model was different than their base model, because they want to protect their retailers. Or he was just speculating. It'd be pretty stupid to relabel a set for warehouse use and then freely admit that there was no difference to anyone who called, right?

I know your mind is made up, but all you did was make your dad feel bad about his bargain purchase of a very nice tv set at a great price, and presumably had him take it back and buy the same thing for more money with less warranty at another store.

But I'll tell you what. Go buy both sets with the model #'s I mentioned, take the backs off of them, and if you can find a significant difference between them I'll buy both of them from you and pay you $2500 for your troubles. I'm that sure.

On the other hand, if you find them to be the same, you'll own two tv's with no warranty since you've broken the warranty seals and you wont be able to return them either. But since the word of the 2nd tier supervisor makes you certain enough to say that someone else is wrong, taking out a bunch of screws for $2500 is a pretty good hours work.

Now I do believe that Walmart and perhaps Sams Club has special versions of products made to their lowered price and specification points. But I've never seen this done by Costco.

http://www.fastcompa...en_snapper.html

[Ski Bum]

Went over today to check out the G.O.B sale. Very disappointed, they are pacing themselves. Most everything in the store is 10% off full retail. The Blueray player I bought before Christmas is actually $20 higher than what I paid.

There are somethings that are 10% off that you never see like Nintendo Wii and iPods to name a few. Deals should start heating up mid Feb, I would guess.

[webuser]

Went over today to check out the G.O.B sale. Very disappointed, they are pacing themselves. Most everything in the store is 10% off full retail. The Blueray player I bought before Christmas is actually $20 higher than what I paid.

There are somethings that are 10% off that you never see like Nintendo Wii and iPods to name a few. Deals should start heating up mid Feb, I would guess.

You can already buy an iPod at Sams Club for more than 10% off of full MSRP.
If CC has no Wiis to sell, 10% off of vapor doesn't matter.
Maybe several more weeks for good deals or they may just save the deals for the very last weekend they're open.

[Ski Bum]

You can already buy an iPod at Sams Club for more than 10% off of full MSRP.
If CC has no Wiis to sell, 10% off of vapor doesn't matter.
Maybe several more weeks for good deals or they may just save the deals for the very last weekend they're open.

They had Wiis yesterday at about 3:30 pm.

[petro]

they also had 20% off dvds including blue rays (not a bad deal, unless u get them through ebay or other internet sources.

[webuser]

I saw an ad on TV that says they increased discounts this week.
20% off digital cameras
25% off plasma tvs (still only 10% off LCDs?)
25% off CDs and DVDs
40% off car audio.

Has anyone seen any real bargains in the Folsom store yet that make the "all-sales-final" policy worth it?

[eVader]

I swear I could have heard "Nothing to see here, move along people...." when I stopped by Friday. Std DVDs were 25% off $22 which isnt much of a deal. Watched a most people walk out empty handed so they must not have seen what they were looking for.

[webuser]

http://i.gizmodo.com...ttery-from-hell


I was thinking about seeing if I can find a bargain on a flat screen TV, but maybe not. 30% off of an inflated price still may not be worth it.