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

I assumed they were also including corporate workers... marketing, finance, HR, etc. it doesn't seem unreasonable then.

My guess is they probably take "total number of employees / total payroll" and come out at $45k. Costco here in Central CA pays $10/12 an hour. Even at the later that would be $25k based on a full time job; and most aren't 40 hours either.

Right. DonSutherland pointed that out earlier in the thread. The problem I have with how it's reported is that they call that $45,000 the earnings of "a typical Costco employee." CalGun, the dollar amount you've stated is much closer to accurate for "the rank and file." (That's per Glass Door.)

It's a little misleading to use "typical employee." To include CEO's, CFO's, Directors, and upper echelon management and come up with a median or average calling that "typical" is misleading. Still, for comparison purposes between Costco and Sam's Club, it serves its purpose.

Are you a.dedicated Walmart shopper?

I've been a member of both Costco and Sam's Club. (Sam's Club right now.) I prefer Sam's Club for a very selfish reason. My closest Costco is in Oakbrook Terrace, an upscale community surrounded by upscale communities in suburban Chicago. It's always packed. My closest Sam's Club is in Addison...it doesn't draw the same crowds.

I don't shop at WalMart.
 
My
guess is they probably take "total number of employees / total payroll" and come out at $45k. Costco here in Central CA pays $10/12 an hour. Even at the later that would be $25k based on a full time job; and most aren't 40 hours either.

what does Walmart pay? Min wage?
 
what does Walmart pay? Min wage?

And that is wrong how? Wal Mart v Coscto is also wildly different in terms of SKU's or number of different items.

But I will say this, Costco has free shipping and I love their 42lbs of lentils for $74.99. That bucket last a whole year. I think that's how they need to feed the food stampers.
 
I guess it defeats the argument that min wage is just for teens, and not for working people with families. If we get rid if min wage, what would Walmart pay then?


And that is wrong how? Wal Mart v Coscto is also wildly different in terms of SKU's or number of different items.

But I will say this, Costco has free shipping and I love their 42lbs of lentils for $74.99. That bucket last a whole year. I think that's how they need to feed the food stampers.
 
Whatever people are willing to work for.

I guess it defeats the argument that min wage is just for teens, and not for working people with families. If we get rid if min wage, what would Walmart pay then?
 
Whatever people are willing to work for.

When illegals get the right to work legally what do you think happens to the supply demand ratio for unskilled labor.
 
Well, I don't believe it. I don't know how they arrived at "the typical Costco employee makes $45,000 a year," but I don't buy it. I don't care what the survey shows.

Unless it is the average for full time workers that they are comparing, the numbers are meaningless. I notice they don't say what they are comparing.
 
And that is wrong how? Wal Mart v Coscto is also wildly different in terms of SKU's or number of different items.

But I will say this, Costco has free shipping and I love their 42lbs of lentils for $74.99. That bucket last a whole year. I think that's how they need to feed the food stampers.

I heartily agree about how to feed people on food stamps.

Now, how much do government subsidies and welfare add to the cost of that $74.99 worth of lentils?

I can see the little smilie face price tags now:
Price: $74.99 (smilie face)
Plus sales tax, cost of food stamps, reverse income tax, free this, free that, the rest of the trillion dollars we spend on income tested welfare programs

Total price $??
 
Funny Costco does just fine with their pharmacy with paying their techs, pharmacists, and pharmacist cashiers above wages than average. Why don't you get back to us when you run YOUR own pharmacy.

I was referring to Digsbe's comment about paying his employees above average salaries. Why don't you get back to us when you learn to read what I actually wrote.

I've run my own business. How many businesses have you owned and operated?
 
Yes, government.should.force the min wage Walmart workers to spend their food stamps at Costco lol

And that is wrong how? Wal Mart v Coscto is also wildly different in terms of SKU's or number of different items.

But I will say this, Costco has free shipping and I love their 42lbs of lentils for $74.99. That bucket last a whole year. I think that's how they need to feed the food stampers.
 
So much for the notion our economy is being destroyed because lazy Americans are overpaid. Not to mention, unlike WalMart, Costco employees don't qualify for food stamps and soak up $2.66 billion in taxpayer subsidies to run their business. Amazing ain't it?

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

A typical Costco worker made $45,000 in 2011, according to Fortune. That’s compared to Sam’s Club workers’ average salary of $17,486 per year, according to salary information site Glassdoor.com. Walmart has also been the target of protests by some of its workers, who are protesting what they say are the company’s low wages.

The big box giant's profit jumped 19 percent to $459 million last quarter, thanks in part to the company’s efforts to offer discounts to lure more members, according to Bloomberg. The company was able to offer those discounts and boost its profits while paying its workers a decent wage, a claim many of Costco’s competitors can’t make.

Nor can Costco's competitors claim growth quite like the wholesale retailer. Walmart’s sales suffered last quarter as shoppers struggled with a delay in their tax refund checks and a payroll tax hike. The company’s Sam’s Club unit, which is comparable to Costco, contended with similar obstacles in 2012.

Target, another Costco competitor, lowered its earnings forecast for the year, after customers cut back, pushing the retailer’s profits down 29 percent.​

Costco is a subscription based PRIVATE wholesale merchandiser that charges a membership fee of $55.00 to $175.00 annually, hence Costco cannot be compared to stores like Walmart or Big K, Target etc.

Costco would NOT be considered a "retail" store.
 
Costco is a subscription based PRIVATE wholesale merchandiser that charges a membership fee of $55.00 to $175.00 annually, hence Costco cannot be compared to stores like Walmart or Big K, Target etc.

Costco would NOT be considered a "retail" store.

I would consider it a retail store. It certainly isn't a wholesaler.
 
I would consider it a retail store. It certainly isn't a wholesaler.

It's not a retail store because you just cant walk into Costco and make purchases without a club membership (which costs $55.00 minimum).
 
So you see, everyone? HuffPo's moral here is that Walmart and Sam's Club should fire half of their staff.
And shut down most of their stores, keeping only a relatively small number of Sams Clubs open.
 
I would consider it a retail store. It certainly isn't a wholesaler.

Well, it's semantics, isn't it? It would be more correct to call Costco a Retail Warehouse Club or a Warehouse Retailer. Although one is purchasing "at retail," they are buying wholesale quantities. Really it's whatever you want to call it. But one can't quite compare Costco to Target as an example. Their business models are very different.

Fiscal year ending in 2012 saw Costco's membership revenue contribute $694 million. Normal retail stores like WalMart and Target have no such opportunity. Costco profit rises on higher membership fees - Chicago Tribune
 
Well, it's semantics, isn't it? It would be more correct to call Costco a Retail Warehouse Club or a Warehouse Retailer. Although one is purchasing "at retail," they are buying wholesale quantities. Really it's whatever you want to call it. But one can't quite compare Costco to Target as an example. Their business models are very different.

Fiscal year ending in 2012 saw Costco's membership revenue contribute $694 million. Normal retail stores like WalMart and Target have no such opportunity. Costco profit rises on higher membership fees - Chicago Tribune

I don't think there is any comparison...

One store (Walmart/Big K/ Target etc sells items to customers on a walk-in basis and the other outlet (Costco) sells to club members only. Bulk has nothing to do with it.
 
I don't think there is any comparison...

One store (Walmart/Big K/ Target etc sells items to customers on a walk-in basis and the other outlet (Costco) sells to club members only. Bulk has nothing to do with it.

I think the point of the thread was that a business can make a good profit while paying their employees enough that they don't qualify for food stamps.
 
I think the point of the thread was that a business can make a good profit while paying their employees enough that they don't qualify for food stamps.

Obviously revenue plays a roll in that does it not?
 
Obviously.

Revenue comes from attracting buyers, which Costco does well, and so does WalMart.

But Costco provides merchandise to the small business which in turn sells its product to "walk-in" customers. Wallmart and the rest serve walk-in customers at good prices because they make their own crap.

Not to mention the taxes for both are different as is the consumer at the register.
 
But Costco provides merchandise to the small business which in turn sells its product to "walk-in" customers. Wallmart and the rest serve walk-in customers at good prices because they make their own crap.

Not to mention the taxes for both are different as is the consumer at the register.

Most Costco shoppers are buying for their families. Some obviously have small businesses, the ones buying a dozen cartons of Pepsi, for example, but they're the exception.

the consumer at the register is someone who has money, needs goods, and is willing to trade money for goods. How is that any different in any business?

I'm no sure about taxes. Costco does collect sales taxes.
 
Most Costco shoppers are buying for their families. Some obviously have small businesses, the ones buying a dozen cartons of Pepsi, for example, but they're the exception.

the consumer at the register is someone who has money, needs goods, and is willing to trade money for goods. How is that any different in any business?

I'm no sure about taxes. Costco does collect sales taxes.

The ones buying in bulk are NOT an exception - they're businesses or shop once a month or twice a year.

My family has a Costco membership and a couple weeks ago I was talking to my mom and she said "for this membership price do I really get savings" and we went into the same discussion/debate this thread is on and both me and her agreed that Costco is only useful for businesses and those who need to feed a family of 10+ and that no savings occurred if an individual didn't do their regular shopping there.
 
The ones buying in bulk are NOT an exception - they're businesses or shop once a month or twice a year.

My family has a Costco membership and a couple weeks ago I was talking to my mom and she said "for this membership price do I really get savings" and we went into the same discussion/debate this thread is on and both me and her agreed that Costco is only useful for businesses and those who need to feed a family of 10+ and that no savings occurred if an individual didn't do their regular shopping there.

simply not true, there are MANY items at Costco like milk, eggs, cheese, meat, etc that is a far better better than places like Walmart for the same quality. You may not be able to do ALL your shopping, but if you do it right the items you buy, even after your membership cost, are better deals. I too have a Costco kmembership and do not have a family of 10+ so please speak for yourself.
 
But Costco provides merchandise to the small business which in turn sells its product to "walk-in" customers. Wallmart and the rest serve walk-in customers at good prices because they make their own crap.

Not to mention the taxes for both are different as is the consumer at the register.

I don't think so. Small businesses buy there for things they consume themselves. How would one make a living marking up things that any tom, dick and harry can buy at Costco?
 
It's not a retail store because you just cant walk into Costco and make purchases without a club membership (which costs $55.00 minimum).

Why is a store with an admission fee that sells to the public not a retail store?
 
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