Costco Regional Sales: Risks

Some of the risks of regional sales are fairly obvious, even with just a basic knowledge of the buying structure. Clearly, regional sales will produce purchase orders in a smaller amount than national sales. Lower quantity production runs can be more costly than national programs, potentially lowering your margin. Additionally, you are limited to a smaller geographic area and a smaller number of warehouses. This challenges your marketing potential as well. Not all members will be aware of your product, and not all members will have the opportunity to purchase your product.

It is important to fully comprehend the regional buying and sales process in order to assess the risks and make a determination for your company. Other than experiencing the process first hand, a manufacturer representatives account can be the next best thing. Our partners learn from our experience and benefit as a result. To learn more, or to speak with a knowledgeable Costco representative, contact us today at regionalsales@vendorco.com.

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