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Costco Membership: Added Benefits

Susan Walker - Tuesday, November 24, 2015

The operating philosophy of Costco is simple: keep costs down as much as possible and pass the savings onto its members. Since Costco has such a large membership base and immense buying power, members ultimately get the best possible prices. Costco is able to keep markups low due to making most of their earnings on membership fees.

A key selling point of Costco is its private label brands, such as Kirkland Signature which was launched in 1995. These private brands are comparable in quality and will always cost less than brand labels, it is no surprise that these brands generate 20% of total revenue.

If you think your product would sell at Costco, pair up with one of our representative to develop your strategy today! Call us at 949-600-7688 or email help@vendorco.com.


Understanding Costco Membership

Susan Walker - Thursday, November 12, 2015

In 1988, Robert Price, President of Price Club said, “We thought of it as a speak-easy. We tried to create a mystique.” At that time, the idea that you could charge people to shop was unimaginable and originally limited to businesses and members of select groups. However, Costco has created a business model that other retailers have since followed.

This month we will discuss Costco Membership, and shed light on the groundbreaking business model that no other retailer has quite been able to match. Included this month will be the following topics:

·         Gold Star Memberships

·         Business Memberships

·         Executive Cardholders

·         Rates and Retention

·         Added Benefits

·         Demographic

·         More Reasons to be a Member

If you are a supplier who is seeking to bring your product into a Costco warehouse or is interested to begin the process, VendorCo can help.  Call us at 949-600-7688 or email help@vendorco.com.

Inside Costco Warehouses: Paper or Plastic?

Susan Walker - Tuesday, October 13, 2015

"Paper or Plastic?" is not something you will hear at Costco checkout line. More often than not you will be asked "Box or No Box". Costco received thousands of boxed products which creates a box overage. Instead of throwing these boxes away, Costco protects our environment by using these boxes in place of shopping bags. Besides, how else can paper or plastic bags store large packaged products that can hold the 40lb bag of dog food or a 10 pack of baby wipes?  The box offers a sturdy solution for the shopper and a great outlet for Costco to reduce is box inventory each day.   

If you are a supplier preparing to work with Costco or is looking to begin the process, VendorCo can help.  Call us at 949-600-7688 or email help@vendorco.com.


Costco Return Fees

Susan Walker - Monday, September 07, 2015

This may be disheartening or concerning to some vendors; however, most Costco returns can be re-sold and occur within the first couple of weeks. Additionally, Costco maintains a delicate balance between satisfying the member with their return policy, while preventing vendors from being burdened with returns. One of the ways Costco helps to prevent massive returns is by only purchasing high quality items that will ensure satisfaction amongst members. If your product is high quality and lives up to its promise, then Costco’s return policy should not be a detrimental concern.

To help ensure that you will be successful in your Costco venture, contact sales@vendorco.com for more details about how our services will best serve you.


Costco Regional Sales

Susan Walker - Monday, June 01, 2015

The buying structure within Costco can be a major cause for error with new business programs. Of the myriad of ways that Costco buys new items, which is the appropriate method for your company? Often, there are several options available, and it’s simply a matter of pinpointing the area that will provide the greatest value for your company. This month, we will be delving into Regional Buys, one of the ways that Costco makes a purchase based on geography and often based on company size.


To be discussed this month will be the following topics:


  • Departments

  • Buying

  • Regional vs. National Sales

  • Benefits

  • Risks

  • Regional Sales Test

  • More information


Visit our blog throughout this month for more information concerning the titles above. If you’re interested in pursuing a regional sales program and would like an expert Costco Representative to assist, contact us today at regionalsales@vendorco.com.

Costco Shipping Containers and Trailers

Susan Walker - Thursday, May 14, 2015

If you have any experience with overseas shipping and/or domestic full truck shipping, then you understand that there are various container/trailer sizes and methods of loading. Vendors often make the mistake of quoting the method and size that is most familiar to them. Perhaps you ship internationally on a 20’ Size container on particular style pallets. Or you may ship domestically via a flatbed trailer with floor loaded master cartons. However, your methods may not be accepted by Costco.


Additionally, all load capacities should be based on maximum utilization of trailer space. For example, loads on pallets need to be turned inside the trailer in a very specific way. Failure to do so may result in additional freight charges to the vendor. Any small change or discrepancy can result in a significant price difference. Don’t make this mistake. Be informed of all Costco’s shipping container/ trailer requirements and load diagrams, by partnering with a knowledgable Costco representative company like VendorCo.


We help our clients understand the “do’s” and “don’ts” of Costco shipping before a price is quoted to Costco, so there are no false assumptions, no guessing games, and reduced potential for losses based on incorrect price quoting. Contact us today to get started, at help@vendorco.com.


Costco Shipping Terms

Susan Walker - Tuesday, May 12, 2015

When you develop your pricing for Costco, it’s important to clearly define your shipping terms, and to ensure that the offered terms are in a format that is accepted by Costco. There are various ways to go about this, each dependent on the avenue of Costco that you are selling to (ie: Costco-US, Costco-Int’l, Costco-ecommerce, etc.).


Many potential vendors approach Costco with a single unit price. Without duties, customs considerations, or freight added to the equation. The assumption is that the retailer will pick up the product from an overseas factory or port. This is one of the many options; however, it’s recommended that you proceed with caution when dealing with these terms. You may encounter unexpected fees.


Another option many vendors provide is a delivered cost. Again, it’s important to be very clear and detailed as to where the products are being delivered to and that your offer is in accordance with Costco’s requirements. Also, did you take into account Costco’s locations in Alaska, Hawaii, and Puerto Rico?

When it comes to shipping terms, it’s important to understand the various options. You cannot quote a price to Costco without having this clearly defined, in accordance with Costco’s terminology. This is an area where a knowledgeable rep can be extremely valuable. At VendorCo, we help our clients understand the options and account for shipping fees, so you have all the tools you need to make the best decision for your business. If you are interested in Costco representation for your products, contact a VendorCo Account Manager today at help@vendorco.com


How can I get a copy of the documents required for Costco vendor set-up?

Susan Walker - Tuesday, November 26, 2013

If your product is accepted by the Costco buyers, you will be provided with all of the documentation that you need to be set up as a vendor. Often, it can be beneficial for potential vendors to review these documents prior to submitting their offer, so they know exactly what will be expected of them if a program is accepted.

Unfortunately, these forms can only be obtained through the vendor extranet, or through Costco’s buying staff. These documents are considered to contain proprietary information, and are not handed out to any manufacturer that asks for them.

VendorCo clients benefit from advanced knowledge of what is required in the necessary documentation. Often, this knowledge can help vendors develop an appropriate price point and strategies for optimized success. We help all of our clients understand what will be expected from them, from beginning to end of any program.

For more information about how VendorCo can help, contact us at help@vendorco.com or (949) 600-7688

Is there a step by step guide to Costco placement?

Susan Walker - Thursday, November 07, 2013

Costco does not provide a step-by-step guide for manufacturers. The information needed to proceed with Costco placement can only be obtained through years of experience or through trial and error. This places many hopeful vendors at a disadvantage.

Luckily, there is help available through VendorCo. We are a manufacturer representative with years of experience, and we can help our clients through each step in the placement process.

If you are interested in becoming a VendorCo client or would like more information, contact us @ help@vendorco.com, or (949) 600-7688

Costco Sales Assistance

Susan Walker - Thursday, October 31, 2013

If you are looking for sales assistance with your Costco program, there’s no need to look no further than VendorCo. We are a representative company with experience, focus, success, and commitment to service.

Our focus on Costco Wholesale specifically guarantees that we communicate with the buyers on a daily basis. We are not distracted by the processes, procedures, rules, and regulations of other retail companies, because we ONLY serve Costco, making us experts in Costco product placement.

If you are interested in learning more about VendorCo, feel free to browse our website, send us an e-mail at help@vendorco.com, or call us at (866) 883-4480. We are happy to review your company and product to help determine your potential with Costco Wholesale.

We look forward to hearing from you!


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