The regional sales buying group for Costco is separate from the national buying group. The national buyer makes decisions for all regionals, including Alaska, Hawaii, and Puerto Rico. This does not necessarily mean that a nationally purchased item will be placed in every Costco warehouse; however, it is a possibility. It is important to differentiate between the two so you understand how to fine tune your sales strategy. As noted in the previous entry, regional buys are either a Costco requirement or vendor choice. Regional buys may be the superior choice for smaller companies with saturated distribution in just a few regions. It is an effective way to test the success of your products and a good solution for mid-sized companies not wanting to take on too much risk.

Before moving forward with Costco, vendors should understand the distribution of each region, including the number of warehouses per region and how the regions are broken up geographically. This will help you to pinpoint which region(s) to target. If you would like more information about whether or not regional distribution is right for your company, you may want to consider partnering with a manufacturer representative.

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