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Thread: How Honest is COSTCO?

  1. #1

    Default How Honest is COSTCO?

    What Do You Think?

    In August of 2020 i purchase Costco's GoPro 8 Bundle for $289.99. A great price considering the retail was $339.99. I knew the GoPro 9 was coming out but i went ahead & got the current bundle. Since then the bundle price dropped all the way down to only $239.99. Costco was selling these bundles fast at this price.

    Then on Dec.27 Trump signed the $600 stimulus bill. The following day Costco changed the price of this bundle by upping it by $100. Also the store moved the display from the middle section back to the main isle where the customers enter the store.

    Nothing is wrong with trying to make money. It wasn't illegal. Just wanted to point out how Costco saw this opportunity.

    https://youtu.be/ikW528EQWPY
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  2. #2

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    Quote Originally Posted by Scuba Chris View Post
    In August of 2020 i purchase Costco's GoPro 8 Bundle for $289.99. A great price considering the retail was $339.99. I knew the GoPro 9 was coming out but i went ahead & got the current bundle. Since then the bundle price dropped all the way down to only $239.99. Costco was selling these bundles fast at this price.
    Considering how lax Costco's policies are where someone can return a Christmas tree in January because it was 'dead,' and get their money back, I'm sure they may have price adjustment policies?

    When I was a wee lad, I used to work at the Gap at our local mall. Aside from having friends come in from high school who wanted to use my employee discount, every day, we got the ladies that would come in, with a stack of old receipts, checking to see if they were eligible for price adjustments. In other words, if within 30 days any price was lower for any items they had bought, we were supposed to give them the difference. (I know that is true for most major retailers in the US. They obviously don't advertise this, as it will hurt their bottom line.)

    So, if Costco uses the same '30 day policy' for price adjustments, you could've been eligible for some coin if the price would've dropped within that 30 day period.

    If not, embrace supply and demand, and the overall tenets of capitalism. ;-)

  3. #3

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    I don't embrace capitalism. In fact, I practice social distancing with it. I wear a mask and stand at least 6 feet away from it. ;)

  4. #4

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    the average markup at costco is under 7%
    that in theory pays for store overhead

    they make their money selling shelf space and membership fee's

    a little over 100,000,000 members pay on the average $70.00 a year with a 87% renewal rate
    that's the gravy

    i would think they got a temporary extra rebates from the manufacturer and when that changed so did the price

    as far as moving merchandise to different locations in the store
    that is part of their normal marketing plan they engage in
    you want something you need to look around for it and view new products

  5. #5
    Join Date
    Jan 2019
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  6. #6

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    too many costco dogs
    that the problem

  7. #7

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    Quote Originally Posted by capoisok View Post
    too many costco dogs
    that the problem
    A problem? That's the solution!

    $1.50 for a hot dog AND a soda? I could buy 400 of those things with my $600 stimulus bill.

    And what's up with the soda at Costco now? You have to stand in line separately with your receipt, and there is a designated soda guy (or gal) whose sole job is to check your receipt, and grab the soda for you. What if you want 'the right amount' of ice? Or if you want to mix the orange soda with the Sprite? Or if you wanna weeze the juice?



    I blame Obama.

  8. #8
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    Quote Originally Posted by DarkShadow View Post
    A problem? That's the solution!

    $1.50 for a hot dog AND a soda? I could buy 400 of those things with my $600 stimulus bill.
    It's no secret that Costco's food court is a loss-leader designed to draw folks into their stores. And it's working.

    Costco’s secret weapon: Food courts and $1.50 hot dogs
    By Nathaniel Meyersohn, CNN Business
    Updated 10:22 AM EDT, Thu October 4, 2018

    (CNN Business) — $1.50. That’s been the price of Costco’s signature hot-dog-and-soda combo for more than three decades.

    It sells at 750 no-frills food courts that look like throwbacks to the 1980s, with picnic tables, umbrellas and giant menu boards over the pickup windows.

    And it’s a hit. Costco sold 135 million combos last year.

    The humble $1.50 hot dog is a secret weapon for the big-box warehouse club. It’s one of the perks that helps persuade shoppers to dish out $60 or $120 for a membership every year.

    “I know it sounds crazy making a big deal about a hot dog, but we spend a lot of time on it,” Costco co-founder Jim Sinegal told The Seattle Times in 2009. “We’re known for that hot dog. That’s something you don’t mess with.”

    Hot dogs are emblematic of Costco’s broader strategy to distinguish its warehouses. Costco finds ways to improve quality while holding prices down on merchandise — TVs to furniture to groceries. To stand out against the likes of Amazon, Walmart, Target and Kroger, Costco masters the basics.

    Costco (COST) makes little to no profit on its $1.50 dogs, and inflation makes the price seem more dated every year. But it’s unlikely to change.

    “It’s somewhat sacrosanct,” Richard Galanti, Costco’s longtime chief financial officer, said in an interview.

    ’Halo effect’

    Costco and its retro food courts stand in sharp contrast to the glitz that many other retailers offer to compel shoppers to head into stores. Think personal stylists, spa services and free wine and beer.

    Costco has thrived in the online shopping era and created a loyal membership base by perfecting the blocking and tackling of retail: Low markups. Popular name brands and Kirkland Signature on the shelves. Conveniently located and easy-to-navigate warehouses. And ketchup and mayonnaise jugs big enough to last customers for months.

    Food courts give Costco another weapon to distinguish itself. They are part of what Costco calls its “ancillary businesses” — gas stations, pharmacies, hearing aid centers, and optical departments.

    Service plays like food, tire changes, and travel booking create a “halo effect” for Costco that extends beyond selling merchandise on the shelves to fulfilling a variety of customer needs, Campbell said.

    “Food courts are a part of the larger Costco ancillary and service ecosystem intended to make the club a top-of-mind solution,” he said.

    The services Costco offers help the club become an established part of customers’ routines and lead to high renewal rates. Nine in 10 customers in a given year re-up on their memberships.

    Stops at the food court also get shoppers to hang around. That extra time increases the chance that they will make an unplanned purchase after they’re finished with their food.
    The food courts produce about $1 billion in sales for Costco.

    Quote Originally Posted by DarkShadow View Post
    And what's up with the soda at Costco now? You have to stand in line separately with your receipt, and there is a designated soda guy (or gal) whose sole job is to check your receipt, and grab the soda for you. What if you want 'the right amount' of ice? Or if you want to mix the orange soda with the Sprite? Or if you wanna weeze the juice?



    I blame Obama.
    Welcome to pandemic times. As part of the protocols to prevent spreading of COVID-19, customers are not allowed to use self service items like soda fountains, coffee dispensers, buffets, etc.

    If anything, you should be blaming Trump.

  9. #9

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    Quote Originally Posted by Panshot View Post
    It's no secret that Costco's food court is a loss-leader designed to draw folks into their stores. And it's working....
    Thank you Simone.


  10. #10
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    Simple just stop going to Costco. If they do not earn a profit they will be gone!

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