costco replaced ipod with zune

[OBLAMA2009]

it looks like they got rid of all the ipods and are now carrying zune and galaxy tab

 

[Soccerman06]

I was thinking they did something else completely.

As a side note, I went to Sam's Club for the last few days and ate their demo pizzas for lunch, yum.

 

[sivart]

it looks like they got rid of all the ipods and are now carrying zune and galaxy tab

Costco rotates stock all the time. Don't find this surprising at all. Sell what sells and gives you the greatest profit margin. Clearly Apple products don't give a good profit margin or else you would see discounts on these products at times. (Have you ever seen one (new) on sale for more than $5 off?)

 

[Tristicus]

Good. Best 2 products! :awe:

Costco rotates stock all the time. Don't find this surprising at all. Sell what sells and gives you the greatest profit margin. Clearly Apple products don't give a good profit margin or else you would see discounts on these products at times. (Have you ever seen one (new) on sale for more than $5 off?)

Yeah there is just about no profit on Apple products.

 

[rootaxs]

Costco reports strong quarter; will phase out selling Apple products

http://seattletimes.nwsource.com/html/businesstechnology/2013631005_costco09.html

 

[OBLAMA2009]

Costco reports strong quarter; will phase out selling Apple products

http://seattletimes.nwsource.com/html/businesstechnology/2013631005_costco09.html

i would have thought costco makes more than 300 mil a quarter. thats probably less than a million dollars per store with all the business they have

 

[Pliablemoose]

i would have thought costco makes more than 300 mil a quarter. thats probably less than a million dollars per store with all the business they have

Costco is a bit of a maverick corp, they actually treat their employees well, and settle for a slim profit margin.

 

[ponyo]

i would have thought costco makes more than 300 mil a quarter. thats probably less than a million dollars per store with all the business they have

Costco actually has a policy of not marking up product more than 15% from their purchased price. Most products have less than 10% gross margin. If you consider the purchasing power of Costco and how cheap they can purchase products, it means you'll rarely do better than Costco. Costco products are normally very high quality for the price. Costco earns most of their money from annual memberships. Majority of that $300 million quarterly profit is from membership. Membership is almost all pure profit.

I've been loyal Costco member and shareholder for years. They're my favorite B&M store.

 

[OBLAMA2009]

Costco actually has a policy of not marking up product more than 15% from their purchased price. Most products have less than 10% gross margin. If you consider the purchasing power of Costco and how cheap they can purchase products, it means you'll rarely do better than Costco. Costco products are normally very high quality for the price. Costco earns most of their money from annual memberships. Majority of that $300 million quarterly profit is from membership. Membership is almost all pure profit.

I've been loyal Costco member and shareholder for years. They're my favorite B&M store.

so they are hardly making money on the stuff they sell? they have to have the highest spending per visit amounts in retail, people rarely get out of there with less than a full cart. i would have thought before this that they would have made a million a year per store selling pizza alone

 

[ponyo]

so they are hardly making money on the stuff they sell? they have to have the highest spending per visit amounts in retail, people rarely get out of there with less than a full cart. i would have thought before this that they would have made a million a year per store selling pizza alone

Oh they make plenty of money. Just not much as they could. Analyst hate how they restrict their margin and want them to have higher margin like Target. Many say Costco is not shareholder friendly. But I like Costco because of their policy and culture.

I believe their margin cap doesn't apply to their own Kirkland brand. Kirkland brand is probably the best generic brand out there. Most of Kirkland stuff are superior to national name brand items. Costco has been aggressively moving and marketing Kirkland brand items. I see more Kirkland items available than ever before.