Costco Membership: Demographic

Did you know that 85% of Costco members are from upper income groups? In fact, more than 50% of Costco shoppers are from households with two to four people. Statistics also show about 70% percent of female wholesale shoppers are under the age of 55. These figures indicated the type of demographic segmentation Costco falls into.

This type of information can be valuable for manufacturers. What type of products would sell best to this member base? Costco has gained a reputation and is well regarded by prestigious consumer-goods makers. When Costco first started, well known brands such as Levi’s and Cuisinart would refuse to sell to Costco because of their misconception that it would degrade their reputation. Now, big brand names compete for the coveted and limited space on Costco’s sales floors.

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.

Costco Membership: Added Benefits

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 Memberships: Executive Cardholders

Are you a black Costco card holder? If so, you are at the most prestigious card holder level. Each executive member must decide if the card is used for personal use or as a business. Both offer the same rewards and extra benefits, such as lower prices on check printing, auto financing, and long-distance phone service.

Executive Gold Star Memberships and Executive Business differ for individuals who set-up under a business. This membership guarantees the “2% Reward” program, that allows members to earn 2% cash back each year. This exclusive membership costs $110.00 annually, but will receive numerous benefits. If you purchase an Executive Business membership, it is available to owners and operators of businesses who want the benefit of the added value of an Executive Membership. The executive member is offered an annual 2% Reward on most of Costco’s products and offered lower prices on member programs. These members are able to add extra cardholders for employees as an additional fee, which differs from only adding family under the Gold Star Executive Membership.

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.

Understanding Costco Membership

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.