Costco purchases are often made by the Truck Load. Even regional items can be purchased as full trucks, depending on the product and the pallet loads. If a product is not successful, a full truck load purchase can result in a huge surplus of inventory which is costly to the vendor and to Costco. In order to protect the vendor and limit liability, Costco will often perform a sales test before launching a full roll out.
The structure of a regional test will be very similar to that of a national program, with the exception of the geographic breadth and units purchased. Product will be sent to a small percentage of stores covering a diverse geographic areas in order to determine if and where a product will see the most success. This allows the buyers to see if sales are strong in one area over another, so they can order accordingly during a full roll out.
Will a regional test be required for your product? How many units will be purchased and to how many warehouses will the product be distributed? These questions and more can be explained by a knowledgeable Costco expert. At VendorCo, we have over 10 years of Costco specific experience that lends us the ability to prepare our clients for the worst, so they can achieve the best results. To partner with VendorCo, contact us today at email@example.com.