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

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

    Quote Originally Posted by Samhain View Post
    Most gas stations make less than 10-20 cents on a gallon of gas. Its a safe bet that 70-90% of their profits come from the store.
    I don't disagree. What I'm saying is most people pick which gas station they use based on the price of the gas not the price of the stuff in the store. That is why gas prices a usually the same in an area.
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    Re: Costco's Profit Soars To $459 Million As Low-Wage Competitors Struggle

    Quote Originally Posted by Jredbaron96 View Post
    why not?
    Average Assistant Cashier: $11.82/hour
    Average Stocker: $12.59/hour
    Average Cashier: $15.79/hour
    Average Demo Services: $11.82/hour
    Average Food Demo: $11.00/hour
    Average Warehouse Demo: $23.35/hour

    $45,000/year would indicate an average of $21.63 hourly. It's just not there.

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

    Quote Originally Posted by ReformCollege View Post
    Costco is even better. Clean store, happy employees, AND ridiculously amazing prices.
    I like Costco. I've been a supplier to Costco.

    How do you think Costco is able to have those rediculously amazing prices?

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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 like Costco. I've been a supplier to Costco.

    How do you think Costco is able to have those rediculously amazing prices?
    Please. Their prices are hardly ridiculously amazing.
    The devil whispered in my ear, "You cannot withstand the storm." I whispered back, "I am ​the storm."

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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 like Costco. I've been a supplier to Costco.

    How do you think Costco is able to have those rediculously amazing prices?
    Because you work cheap?
    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 like Costco. I've been a supplier to Costco.

    How do you think Costco is able to have those rediculously amazing prices?
    Because they sell in huge bulk. Remember when I said I got nearly 4.5 pounds of choice sirloin steak for $20? Well they ONLY sell sirloin steak in ~4.5 pound packages.

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

    Quote Originally Posted by MaggieD View Post
    Please. Their prices are hardly ridiculously amazing.
    They sell meats a grade higher for a cheaper price then anything you buy at Walmart. You seriously can't beat that.

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

    Quote Originally Posted by ReformCollege View Post
    They sell meats a grade higher for a cheaper price then anything you buy at Walmart. You seriously can't beat that.
    So you say.
    The devil whispered in my ear, "You cannot withstand the storm." I whispered back, "I am ​the storm."

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

    Quote Originally Posted by ReformCollege View Post
    Because they sell in huge bulk. Remember when I said I got nearly 4.5 pounds of choice sirloin steak for $20? Well they ONLY sell sirloin steak in ~4.5 pound packages.
    Yes, that is part of it. However, if you're a supplier to Costco, you have to be able to meet their purchase demands 100% of the time. If another supplier comes along with a better price, you're out. Sounds fair, however, what would a supplier do with all the inventory they had built up to meet that demand.

    As I wrote, I like Costco, but their buying floor in Issaquah is littered with the carcases of suppliers destroyed by their purchasing department.

    I've told many company owners I know that they are making a pact with the devil when they sign on with Costco. The volumes are tremendous, and the profits slim, but when they get dropped, they better not be holding the bag for plant and personnel expansions they made to meet the volume, because it could destroy them.

    Believe it or not, this is some behind the scenes truth about Costco.

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

    Quote Originally Posted by MaggieD View Post
    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.
    The survey might not be off if one is dealing with total compensation (wages + benefits). At last word, Costco had 160,292 employees worldwide. Its selling and general administrative expenses (primarily salaries and wages according to Note 1 of the financial statements) came to $9.518 billion. That would translate into a mean figure of $59,379 per employee.

    However, that figure is likely skewed, as certain key employees receive far more compensation than the average worker. SG&A expenses also are comprised of other items. But even with a 25% reduction in the SG&A figure to account for those other items, one still comes close to $45K per employee.

    Sources of data:
    Costco - Company Profile
    Form 10-K

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