Costco's Profit Soars As Low-Wage Competitors Struggle

[g5000]

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.

 

[syrenn]

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...

its a sound good talking point for agenda. The link flat states the reason for the jump in profits.....

 

[ClosedCaption]

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

 

[Missourian]

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.

 

[ClosedCaption]

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

 

[boilermaker55]

Now, wouldn't it be so exciting, maybe, if you could have the ability make a different choice and shop where you wanted. Maybe if your employer paid a more liveable wage you could make more free choices.
Then walmart could not dictate to you where you can afford to buy products.
But that would be so counter-productive in what many close-minded people cannot see.
Let the clothes manufacturers exploit third world countries by paying slave wages and working condition and pay American workers minimum wage. What a great concept.

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!~

 

[Politico]

According to Right wing Math this guy shoulda jacked his prices through the roof and the free market would've determined ppl go to other places and Costco goes out of business. The cost of higher wages gets pushed onto the customer right?

W.R.O.N.G.

Full of shit much?

Good for them. Crush tiny and rock on.

 

[g5000]

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.

 

[DiamondDave]

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

Respouting your idiotic assertion and talking point does not make it relevant.. nor does it make it the belief or assertion of your opposition

Ain't it about time for you to start another thread that is destined to go to the rubber room or badlands??

 

[Uncensored2008]

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

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


The Huffington Post
05/30/2013

At a time when other retailers are struggling to get people into stores, Costco is enjoying a moment in the sun.
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.

.

You know Sams Club pays virtually identical wages to Costco, doncha fucktard?

 

[Uncensored2008]

Bingo


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

CostCo (Price Club) and Sams Club (Pace) have identical business models. Pace Warehouse was the first general public club store, started by Sears. They based their model on FedCo; but where FedCo only allowed Federal Employees and their family, Pace was open to anyone who would pay the yearly fee. By limiting the SKUs carried, and offering only bulk items, Pace kept overhead to a fraction of what competing retailers paid. Price Club soon copied the Pace model. Both were enormously successful. CostCo sprang up in the late 80's and actually merged with Price Club, rather than buying them. About the same time, KMart (which had acquired Sears) sold Pace to Walmart, who rebranded Pace as "Sam's Club."

Throughout this, both organizations have paid well for retail, which offers a generally better quality of worker. The pay for similar positions is virtually identical in both stores. A checker can expect $16 to $18 to start in either organization. But getting hired is tough - Sam's Club will only hire on recommendation. CostCo does personality testing to ensure prospective employees fit the culture.

Both pay better than KMart, Target, et al; because the margins are greater and the model supports a more professional workforce.

 

[ClosedCaption]

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

Respouting your idiotic assertion and talking point does not make it relevant.. nor does it make it the belief or assertion of your opposition

Ain't it about time for you to start another thread that is destined to go to the rubber room or badlands??

Quoting posts without passing judgement or opinion upon thee a point does not make. No refutation suggests an inability to do so coupled with the need to go to such important topics of discussion such as said "rubber room" also suggests that you take this message board and what occurs on it to a level more than "hobby"

Go find ye Real Hobby and give no more importance to what section a thread goes to my son. It rewards thee none

 

[blastoff]

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

 

[Dont Taz Me Bro]

House Republicans Vote to Keep Millions in Poverty by Refusing to Raise the Minimum Wage
.

Raising the minimum wage a dollar an hour isn't going to raise anyone out of poverty, dumb ass. If you're an adult making the minimum wage then you need to reevaluate your life and figure out how you became such a fucking loser to begin with.

The minimum wage shouldn't even exist in the first place.

 

[Wyatt earp]

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.

missed that part did you?

Nice eye, I have been saying it for months, the reason this Costco CEO has been in the news for wanting a higher federal minimum wage is only because of one reason... He dont want to have to chose between raising prices or to lower employees wages. I would be curious to know how many costco employees shop at Walmart or dollar general btw.

 

[DiamondDave]

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

Respouting your idiotic assertion and talking point does not make it relevant.. nor does it make it the belief or assertion of your opposition

Ain't it about time for you to start another thread that is destined to go to the rubber room or badlands??

Quoting posts without passing judgement or opinion upon thee a point does not make. No refutation suggests an inability to do so coupled with the need to go to such important topics of discussion such as said "rubber room" also suggests that you take this message board and what occurs on it to a level more than "hobby"

Go find ye Real Hobby and give no more importance to what section a thread goes to my son. It rewards thee none

Show where your opposition stated that increased wages to a level around what you suggest increases the price of something by close to 100%

And your continual troll threads that end up where troll threads belong shows your propensity for bullshit...

Son

 

[ClosedCaption]

Respouting your idiotic assertion and talking point does not make it relevant.. nor does it make it the belief or assertion of your opposition

Ain't it about time for you to start another thread that is destined to go to the rubber room or badlands??

Quoting posts without passing judgement or opinion upon thee a point does not make. No refutation suggests an inability to do so coupled with the need to go to such important topics of discussion such as said "rubber room" also suggests that you take this message board and what occurs on it to a level more than "hobby"

Go find ye Real Hobby and give no more importance to what section a thread goes to my son. It rewards thee none

Show where your opposition stated that increased wages to a level around what you suggest increases the price of something by close to 100%

And your continual troll threads that end up where troll threads belong shows your propensity for bullshit...

Son

No, because as soon as I post it you'll find another excuse. Here's your chance to be honest Dave don't disappoint gramps. Repubs always say that a raise in wages results in the employer having to raise prices. I can link to several...

Now, are you denying that Dave?

 

[DiamondDave]

Quoting posts without passing judgement or opinion upon thee a point does not make. No refutation suggests an inability to do so coupled with the need to go to such important topics of discussion such as said "rubber room" also suggests that you take this message board and what occurs on it to a level more than "hobby"

Go find ye Real Hobby and give no more importance to what section a thread goes to my son. It rewards thee none

Show where your opposition stated that increased wages to a level around what you suggest increases the price of something by close to 100%

And your continual troll threads that end up where troll threads belong shows your propensity for bullshit...

Son

No, because as soon as I post it you'll find another excuse. Here's your chance to be honest Dave don't disappoint gramps. Repubs always say that a raise in wages results in the employer having to raise prices. I can link to several...

Now, are you denying that Dave?

Uh huh... you won't post it because there was no claim to the exaggerated level that you tried to use for shock value

Raises in wages will lead to increased prices, unless cuts in expenses are made ELSEWHERE...

You care to show us how the raising of wages does not impact pricing?? We'd LOVE to hear that explanation

 

[ClosedCaption]

Just like I thought saved 5 minutes of searching because Dave was going to blow it out his arse anyway. FTW!

 

[JoeNormal]

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.

You're right. It didn't used to be that way but it is now. They've kind of 'trained' customers to shop there in some ways. You can still get some bargains but it's nothing like it used to be.