How profitable is Costco

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E

eflat

Platinum Member
Feb 27, 2000
2,109
0
0
Does anyone know how well Costco does? You never hear much about their financial well being since I assume it's not a public company.

That said, their business model is close to perfection imho and I have never seen a business run more efficiently in my entire life. I know their employees get paid well and get good benefits.

Just how big and profitable is Costco?
 
Fenixgoon

Fenixgoon

Lifer
Jun 30, 2003
33,613
13,311
136
costco does very well, their CEO is a multibillionaire, even though they treat their employees much better than most other places

costco = profit / time versus profit now
 
I

iwearnosox

Lifer
Oct 26, 2000
16,018
5
0

If Costco were a woman I would make sweet love to her. Then eat a bag of beef jerky and a case of red bull afterwards.
 
A

aplefka

Lifer
Feb 29, 2004
12,014
2
0
I wish I worked there. It'd be like working in the B&M version of the Hot Deals forum.
 
vi edit

vi edit

Elite Member
Super Moderator
Oct 28, 1999
62,484
8,345
126
Not as profitable as they *could* be. But that's what makes them kind of cool. They cap the markup values of inhouse brands and "name" brand products to a certain amount. They pay their employees very well, and offer great benefits

Kind of an Anti-Sam's Club.

:p
 
Z

z0mb13

Lifer
May 19, 2002
18,106
1
76
Originally posted by: iwearnosox

If Costco were a woman I would make sweet love to her. Then eat a bag of beef jerky and a case of red bull afterwards.
Click to expand...

after you eat the steak of course..

:D:D
 
olds

olds

Elite Member
Mar 3, 2000
50,128
781
126
Originally posted by: iwearnosox

If Costco were a woman I would make sweet love to her. Then eat a bag of beef jerky and a case of red bull afterwards.
Click to expand...

Eating a case of Red Bull has to be hard on the teeth and gums.
 
A

axelfox

Diamond Member
Oct 13, 1999
6,719
1
0
Originally posted by: Fenixgoon
costco does very well, their CEO is a multibillionaire, even though they treat their employees much better than most other places

costco = profit / time versus profit now
Click to expand...

:confused:

So, he is billionaire, despite how he treats his employees? Sounds like you gotta be a jerk to be rich.
 
ultimatebob

ultimatebob

Lifer
Jul 1, 2001
25,134
2,450
126
I think that Fenix was trying to compare Costco to Walmart, who has turned the entire Walton family into billionaires while treating their employees like dog crap.
 
mugs

mugs

Lifer
Apr 29, 2003
48,920
46
91
Originally posted by: vi_edit
Not as profitable as they *could* be. But that's what makes them kind of cool. They cap the markup values of inhouse brands and "name" brand products to a certain amount. They pay their employees very well, and offer great benefits

Kind of an Anti-Sam's Club.

:p
Click to expand...

They're criticized for that, but I think it's great.
 
C

Conky

Lifer
May 9, 2001
10,709
0
0
Originally posted by: z0mb13
a floor manager at costco makes 100-120k a year
Click to expand...

Yeah, I know a guy who is a complete imbecile and a drunk and is also the manager of a Costco in San Diego. He makes mad bank. It's not right, lol.



 
D

deftron

Lifer
Nov 17, 2000
10,868
1
0
I'm beginning to think Costco is ripoff, besides the cheaper gas.


I filled out a comment card a couple months ago (first time ever doing that)

to ask why Kirkland Generic diapers were the exact same price as name brands
like Huggies and Pampers ($29.99)

About a week later, Costco calls me and says the Kirklands are now 10% cheaper.

I'm thinking ... big whoop .. .10% ... most generic stuff is like 25 -35% cheaper than name brands...


Anyways.. next time I was in Costco.. Kirkland diapers were still $29.99 ... however
name brand diapers were now $32.99

Yeah, nice 10% savings :roll:

Almost canceled my membership right there.. but I use Costco for gas like every other day.
 
R

Rogue

Banned
Jan 28, 2000
5,774
0
0
Originally posted by: deftron
I'm beginning to think Costco is ripoff, besides the cheaper gas.


I filled out a comment card a couple months ago (first time ever doing that)

to ask why Kirkland Generic diapers were the exact same price as name brands
like Huggies and Pampers ($29.99)

About a week later, Costco calls me and says the Kirklands are now 10% cheaper.

I'm thinking ... big whoop .. .10% ... most generic stuff is like 25 -35% cheaper than name brands...


Anyways.. next time I was in Costco.. Kirkland diapers were still $29.99 ... however
name brand diapers were now $32.99

Yeah, nice 10% savings :roll:

Almost canceled my membership right there.. but I use Costco for gas like every other day.
Click to expand...

And how much was an equivalent amount of diapers at any other retail location?
 
C

Conky

Lifer
May 9, 2001
10,709
0
0
Originally posted by: deftron
I'm beginning to think Costco is ripoff, besides the cheaper gas.


I filled out a comment card a couple months ago (first time ever doing that)

to ask why Kirkland Generic diapers were the exact same price as name brands
like Huggies and Pampers ($29.99)

About a week later, Costco calls me and says the Kirklands are now 10% cheaper.

I'm thinking ... big whoop .. .10% ... most generic stuff is like 25 -35% cheaper than name brands...


Anyways.. next time I was in Costco.. Kirkland diapers were still $29.99 ... however
name brand diapers were now $32.99

Yeah, nice 10% savings :roll:

Almost canceled my membership right there.. but I use Costco for gas like every other day.
Click to expand...

Cloth diapers only cost you detergent and a wash cycle. ;)

*So freaking glad I don't have kids!*

:beer:


 
D

deftron

Lifer
Nov 17, 2000
10,868
1
0
Wal Mart has the huge Huugies/Pamers box for like $35

But the Wal Mart Generic boxes are like $19.99

 
M

MithShrike

Diamond Member
May 5, 2002
3,440
1
0
Originally posted by: vi_edit
Not as profitable as they *could* be. But that's what makes them kind of cool. They cap the markup values of inhouse brands and "name" brand products to a certain amount. They pay their employees very well, and offer great benefits

Kind of an Anti-Sam's Club.

:p
Click to expand...

Price Club and Costco were around before Sam's Club. The cap is 14% for retail markup.
 
L

lagvoid

Senior member
Dec 4, 2000
732
1
81
I read that BJ is more profitable but that information may be out of date.

in 2001 BJ's ROI ~18% vs Costco's ROI ~12%
-strategic management theory 2004
 
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