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Thread: Costco's Profit Soars To $459 Million As Low-Wage Competitors Struggle

  1. #101
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    Re: Costco's Profit Soars To $459 Million As Low-Wage Competitors Struggle

    Quote Originally Posted by ReformCollege View Post
    Then why did you continue to do business with Costco? Obviously Costco offered a better deal with high volume and low margins then getting better margins and a lower volume from another competitor. Which is why the suppliers were fighting to supply the company.
    I would think the answer was rather obvious. I determined the volume I was doing would not hurt me when it stopped.

    I originally did business with Price Club, the company that pioneered the club business. Costco eventually merged with Price Club and was then known as Price-Costco. Eventually they dropped the Price name.

    One product I supplied to them had it's highest sales around the holidays. Common for most businesses is the fact they can't manufacture sufficient numbers of products during November and December due to the holidays. That means they build inventory during the summer to carry them through.

    After 7 years of doing business, Costco dropped my product with one week notice, 3 weeks before the increased holiday shipments were to start. That was a $2 million hit they had no problem wipping their hands from. They didn't care about the existing inventory, or the special nature of the products involved. Now, that's the way it goes. It's business. Very cold way to do business, and many, many suppliers have been destroyed by the Costco way of doing business. I was big enough to absorb it and move on, but imagine how nice it would have been to lay off employees at Christmas.

    Costco is nothing more than another big business. Somebody always pays, and for Costco, it's their suppliers. Again, there is a vast sea of ruined businesses out there who got carried away with the idea of doing business with them.

    That's my experience. Again, I like the company, but this pedestal stuff is a bit much.

  2. #102
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    Re: Costco's Profit Soars To $459 Million As Low-Wage Competitors Struggle

    Quote Originally Posted by haymarket View Post
    But that is my point. Why would three gas stations at the same intersection all keep their price the same if the entire idea is to entice customers with a low price? None of the three are any lower than the other. They are clearly engaged in artificial price fixing.
    They are not price fixing unless they all get together and agree to post the same price without regard to cost. It is no different than a store offering to match a competitors price.
    There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences.
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    Re: Costco's Profit Soars To $459 Million As Low-Wage Competitors Struggle

    Quote Originally Posted by ocean515 View Post
    I would think the answer was rather obvious. I determined the volume I was doing would not hurt me when it stopped.

    I originally did business with Price Club, the company that pioneered the club business. Costco eventually merged with Price Club and was then known as Price-Costco. Eventually they dropped the Price name.

    One product I supplied to them had it's highest sales around the holidays. Common for most businesses is the fact they can't manufacture sufficient numbers of products during November and December due to the holidays. That means they build inventory during the summer to carry them through.

    After 7 years of doing business, Costco dropped my product with one week notice, 3 weeks before the increased holiday shipments were to start. That was a $2 million hit they had no problem wipping their hands from. They didn't care about the existing inventory, or the special nature of the products involved. Now, that's the way it goes. It's business. Very cold way to do business, and many, many suppliers have been destroyed by the Costco way of doing business. I was big enough to absorb it and move on, but imagine how nice it would have been to lay off employees at Christmas.

    Costco is nothing more than another big business. Somebody always pays, and for Costco, it's their suppliers. Again, there is a vast sea of ruined businesses out there who got carried away with the idea of doing business with them.

    That's my experience. Again, I like the company, but this pedestal stuff is a bit much.
    what was the product/products you sold to Costco?

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    Re: Costco's Profit Soars To $459 Million As Low-Wage Competitors Struggle

    Quote Originally Posted by Heebie Jeebie View Post
    They are not price fixing unless they all get together and agree to post the same price without regard to cost. It is no different than a store offering to match a competitors price.
    You can define it any way you want to define it - the practical end result is that they collude to all set the same price so they all have an acceptable profit margin.

    And it is very different that agreeing to match a competitors price.... very different, because the colluded price is the normal price - not something which has to me matched on a special "ask for" basis.
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    Re: Costco's Profit Soars To $459 Million As Low-Wage Competitors Struggle

    Quote Originally Posted by 66gardeners View Post
    what was the product/products you sold to Costco?
    They involved food packaging

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    Re: Costco's Profit Soars To $459 Million As Low-Wage Competitors Struggle

    Quote Originally Posted by haymarket View Post
    You can define it any way you want to define it - the practical end result is that they collude to all set the same price so they all have an acceptable profit margin.
    There is no evidence that any collusions has taken place is all four corner gas stations have the same price gas. It's not like the prices are on a tiny sign hidden from view. They are posted in big numbers for all to see.
    I have seen places where there were 4 different prices, places where they were all the same, places where the guy was changing the price in the middle of the day to be the same as the station across the street.
    There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences.
    P. J. O'Rourke

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    Re: Costco's Profit Soars To $459 Million As Low-Wage Competitors Struggle

    Quote Originally Posted by Heebie Jeebie View Post
    There is no evidence that any collusions has taken place is all four corner gas stations have the same price gas. It's not like the prices are on a tiny sign hidden from view. They are posted in big numbers for all to see.
    I have seen places where there were 4 different prices, places where they were all the same, places where the guy was changing the price in the middle of the day to be the same as the station across the street.
    I know these people. The owner of one station admits that all three keep their prices the same so that they all make money. He says that the occasional past price wars are simply destructive and cause nobody to make money.

    This is the real world and not the abstract world of economic 101 theory. This is how it really works out there.
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    Re: Costco's Profit Soars To $459 Million As Low-Wage Competitors Struggle

    Quote Originally Posted by Samhain View Post
    Trader Joe's has great food, but I get claustrophobic in there. Its just too damn small. I send my wife in there alone, but I prefer Aldi. They both have the same general business plan(internal marked goods), with Trader Joe's going for the "Joe" name on everything and Aldi doing generic.

    Most of the food is the same between the two, just packaged different.

    I dread going to Trader Joes. Mostly because the parking lot is a nightmare due to being over-packed and laid out atrociously. It is tight inside but I like the width of the aisles and that a worker is always nearby to ask any questions along with the fast moving checkouts so you get in and get out in a damn hurry. I like that a lot. I'm not much for shopping in the sense of gazing and looking around. I know what I want and in that fashion Trader Joe's is good for those who shop like me.
    Quote Originally Posted by Moderate Right View Post
    The sad fact is that having a pedophile win is better than having a Democrat in office. I'm all for a solution where a Republican gets in that isn't Moore.

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    Re: Costco's Profit Soars To $459 Million As Low-Wage Competitors Struggle

    Quote Originally Posted by PirateMk1 View Post
    Here's a another thing the former CEO, I don't know about the current one, made just under 12 time the salary of his LOWEST paid employee. That says something about the leadership of the company. I have two Costco's near me and many of the employees that work there have been there for over a decade. There's that little turnover.
    And on the flipside of that coin...

    Quote Originally Posted by Moderate Right View Post
    The sad fact is that having a pedophile win is better than having a Democrat in office. I'm all for a solution where a Republican gets in that isn't Moore.

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    Re: Costco's Profit Soars To $459 Million As Low-Wage Competitors Struggle

    Quote Originally Posted by Mr. Invisible View Post
    I work at Trader Joe's and I can definitely say that that is true. We are always packing stuff during the day and then packing even more stuff when the truck comes in at night. Yet, in places like Trader Joe's, we do have something of a night shift, the store closes at nine and we unload and work the stuff from the truck until midnight.
    My stepson has been trying to get on at the Trader Joe's but can't seem to get his foot in the door.

    I like the people that work there. They seem to be very friendly and team oriented.
    Quote Originally Posted by Moderate Right View Post
    The sad fact is that having a pedophile win is better than having a Democrat in office. I'm all for a solution where a Republican gets in that isn't Moore.

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