Costco's Profit Soars As Low-Wage Competitors Struggle

[Yurt]

comparing costco to walmart is not intelligent. costco is a membership based store. their membership fees net them hundreds of millions of dollars a year. further, there is nothing here to suggest that their wages are responsible for their profits. wages have zero to do with memberships and customers buying their products.

 

[Synthaholic]

I seriously can't shop at Costco. Their home, and lawn/gardeng items are just too expensive. The only thing I really like is the Kirland Lavendar laundry detergent and fabric softener, but you can get it from Wally World under a different brand name for half the price. It's definitely yuppie discount shopping at Costco. But, while I may have been yuppie for a bit, I'm not stupid. I did buy a laptop there and felt like I got a good deal, then I looked here in KY where things tend to be a bit cheaper anyway and the local Office Depot of whatever it is called had it for less.

They do have some lovely cashmere sweaters in the winter, though!~

This post confirms some things for me.

Their items are better quality, and if you have a problem with anything, just bring it back. No receipt, no original packaging. They will give you full credit.

When you bought that laptop there, it included 2 years of worry-free use. The first year is from the manufacturer, the second year is from Costco. If you were smart enough to pay with your Costco American Express, AMEX adds a third year of warranty.

 

[Synthaholic]

.
Republicans hate this --- Costco pays a little more than the food stamp companies like Walmart -- well OK, a lot more.

You apparently aren't aware (Surprise! Surprise!) that most of the executive leadership of Walmart are so-called liberal Democrats.

Link?

 

[Synthaholic]

Googled "Costco Missouri", page one results.

Yep...they're doing great...

Apparently, Independence cannot support a Costco. Or, they are just stupid in Independence.

 

[Synthaholic]

Costco is not a discount store. Their prices are, ounce for ounce, identical to my local grocery store. The only reason to go out of your way to shop at a Costco warehouse is if you have a lot of kids who eat a lot of food. But check their prices. Even though you are buying larger scale, you are not paying less for buying bigger.

And if you end up throwing away half of that gallon jar of mayonaisse you bought at Costco because it spoiled before you used it all, then you are actually losing money.

That is patently false. Comically so.

 

[Missourian]

Some of you should spend a moment thinking about Costco's membership fees vs. no such profit center for Walmart.

Exactly...Bloomberg states as much in their headline...

Costco’s Profit Advances 19% With Boost From Membership Fees

​

 

[Synthaholic]

Costco is not a discount store. Their prices are, ounce for ounce, identical to my local grocery store. The only reason to go out of your way to shop at a Costco warehouse is if you have a lot of kids who eat a lot of food. But check their prices. Even though you are buying larger scale, you are not paying less for buying bigger.

And if you end up throwing away half of that gallon jar of mayonaisse you bought at Costco because it spoiled before you used it all, then you are actually losing money.

That is patently false. Comically so.

I just did a quick example.

Cheerios

Costco: $5.50 for 40.7 oz = 0.135 per oz.
Wal8Mart: $3.68 for 18 oz = 0.204 per oz

So, 13.5 cents at Costco, 20.4 cents at Wal*Mart

 

[Synthaholic]

If they pay their employees $17 and hour that means their toilet paper must be $75 or something right?

Kirkland brand is $14.95 for 32 rolls.

 

[Synthaholic]

If their model is successful.. good for them.. that is what business is all about

And if WalMart beats them.. still.. good for them too

It is not about favorites.. it is about the freedom of business to do what they want and succeed or fail all on their own because of those decisions and practices

And Costco is successful in areas where there is an enormous customer base...but when they move out of the metropolises, they get crushed by their competition.

Wal-mart is everywhere...their business model works in all locations.

In Missouri there are five Costco's, three in St Louis and two in Kansas City...they tried to expand and failed.

Wal-mart...100 locations in Missouri...no closures.

WalMart is not everywhere.

 

[Synthaholic]

Costco is not a discount store. Their prices are, ounce for ounce, identical to my local grocery store. The only reason to go out of your way to shop at a Costco warehouse is if you have a lot of kids who eat a lot of food. But check their prices. Even though you are buying larger scale, you are not paying less for buying bigger.

And if you end up throwing away half of that gallon jar of mayonaisse you bought at Costco because it spoiled before you used it all, then you are actually losing money.

I don't know G5000...I usually agree with you on a lot and even the stuff I don't you source it and give reasonable explanations to back it. I think Costco might be cheaper, not by a WHOLE lot but cheaper

Source it? Use your own eyes! Do you not compare prices when you shop? I do. And Costco's grocery prices are nearly identical to my local grocery store's prices when you do a little simple algebra and figure out what you are paying per ounce, pound, pint, or whatever.

And when you factor in your annual $50 membership fee, plus the gas and travel time to get to Costco, you are losing money on the deal.


Seriously. Bring a calculator with you next time and do the math.

You do not have a clue what you are talking about. Seriously.


And algebra never enters into it.

 

[Wyatt earp]

Costco is not a discount store. Their prices are, ounce for ounce, identical to my local grocery store. The only reason to go out of your way to shop at a Costco warehouse is if you have a lot of kids who eat a lot of food. But check their prices. Even though you are buying larger scale, you are not paying less for buying bigger.

And if you end up throwing away half of that gallon jar of mayonaisse you bought at Costco because it spoiled before you used it all, then you are actually losing money.

Great point.
www.huffingtonpost.com/blackberry/p.html?id=1819340

Aug 21 (Reuters) - Americans throw away nearly half their food every year, waste worth roughly $165 billion annually, according to a study released on Tuesday. "As a country, we're essentially tossing every other piece of food that crosses our path. That's money and precious resources down the drain," said Dana Gunders, a scientist with the Natural Resources Defense Council's food and agriculture program.

 

[Star]

I doubt seriously their profits are becasue they pay better then walmart



costco profits are better becasue they sell a better quality and type of product.

Bingo


I am still waiting for Star's and CloseMinded's explanation of how paying higher wages actually equates to higher profits...

Since Republicans hate education, most have probably never heard of/or taken an economics class that included Efficiency Wages, but to answer your question in simplest terms -- Balance-Native Intelligence-Efficiency Wages-Incentive

and...

..."people tend to prefer working hard for people and organizations that acknowledge their worth and respond in kind"


Any questions?
.

 

[DiamondDave]

I doubt seriously their profits are becasue they pay better then walmart



costco profits are better becasue they sell a better quality and type of product.

Bingo


I am still waiting for Star's and CloseMinded's explanation of how paying higher wages actually equates to higher profits...

Since Republicans hate education, most have probably never heard of/or taken an economics class that included Efficiency Wages, but to answer your question in simplest terms -- Balance-Native Intelligence-Efficiency Wages-Incentive

and...

..."people tend to prefer working hard for people and organizations that acknowledge their worth and respond in kind"


Any questions?
.

And this has nothing to do with your assertion... this has to do with motivating employees to work.. not the effect on the PRICE OF GOODS nor TOTAL PROFIT

You are a dense one

 

[Yurt]

an increase in wages will almost always result in a price increase. to assume otherwise shows you're ignorant as to business models.

 

[Yurt]

If their model is successful.. good for them.. that is what business is all about

And if WalMart beats them.. still.. good for them too

It is not about favorites.. it is about the freedom of business to do what they want and succeed or fail all on their own because of those decisions and practices

And Costco is successful in areas where there is an enormous customer base...but when they move out of the metropolises, they get crushed by their competition.

Wal-mart is everywhere...their business model works in all locations.

In Missouri there are five Costco's, three in St Louis and two in Kansas City...they tried to expand and failed.

Wal-mart...100 locations in Missouri...no closures.

WalMart is not everywhere.

hyperbole....learn it moron

 

[Connery]

Moved to proper forum.

 

[Yurt]

comparing costco to walmart is not intelligent. costco is a membership based store. their membership fees net them hundreds of millions of dollars a year. further, there is nothing here to suggest that their wages are responsible for their profits. wages have zero to do with memberships and customers buying their products.

Some of you should spend a moment thinking about Costco's membership fees vs. no such profit center for Walmart.

Exactly...Bloomberg states as much in their headline...

Costco’s Profit Advances 19% With Boost From Membership Fees

​

i win again

 

[Uncensored2008]

Since Republicans hate education, most have probably never heard of/or taken an economics class that included Efficiency Wages, but to answer your question in simplest terms -- Balance-Native Intelligence-Efficiency Wages-Incentive

and...

..."people tend to prefer working hard for people and organizations that acknowledge their worth and respond in kind"


Any questions?
.

So, were you born mentally retarded, or did you go head first into a concrete pylon at 90 MPH?

 

[ClosedCaption]

an increase in wages will almost always result in a price increase. to assume otherwise shows you're ignorant as to business models.

Yeah Dave!

 

[Obamanation]

Isn't Costco one of those nasty corporations?

The SuperBanks pay janitors in the mid-teens - don't hear the moron lefties praising them... No. Instead they ascend on the banks en' masse and urinate in their lobbies...

...they call the GOP the party of hate!! Goose meet gander...