How profitable is Costco

[AccruedExpenditure]

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.

That's friggen awesome. I love capitalism... I would have done the same thing just to piss you off... your measly membership isn't going to make or break me

bwahhahah

I'm only partially joking.

 

[spacelord]

Its been a couple weeks since I picked up diapers at Costco, but I think the QTY was different. More in the Kirkland brand, and a couple bucks cheaper. Need to always look at the per unit price.

For those parents wondering, the Kirkland diapers are pretty good though.

 

[archcommus]

What's so awesome about Costco? I've never been to one.

 

[Kalbi]

Their Profit Margin is only 2%

 

[jdub1107]

Originally posted by: archcommus
What's so awesome about Costco? I've never been to one.

It feels like a huge storage warehouse where everything is sold in larger quantity and cheaper.

 

[Rudee]

Not only does Costco convince people to buy large amounts of stuff they don't need, but they make you take it out of the store in cardboard boxxes, thus you're taking the trash out for them at the same time. Very clever.

 

[Shadowknight]

Costco's increasing their profit on a linear, not exponential basis. This is the reverse of Wal-mart. There was an article that covered this, apparently investors are mystified/annoyed that they're not getting more cash out of Costco and don't understand why the employees are treated well.

Because the head of the company isn't a jerk that puts Benjamin, Jackson and Washington ahead of his own employees.

 

[msparish]

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.

This is because Costco is not trying to target those who want the best deals. Many times, their Kirkland signature brand is produced by a brand name company. Those diapers were more than likely made by one of the makers of Pampers, Huggies, etc. Costco more deals with good prices for brand name products, whereas other places (e.g. Wal-mart) offer the cheapest thing possible.

As such, you can save more by shopping at other places. But oh, I love teh Costco!

 

[yellowg555]

Not to mention the yearly membership fees add to their annual bottom line as well.

 

[SVT Cobra]

Originally posted by: jadinolf

Originally posted by: oldsmoboat
They gross elventybillion dollars a day.

More than that. :laugh:

:laugh: