Costco revenue exceeds $170B annually. They offer items from health and beauty to hardware and household. Their sales are driven by treasure hunt buying; focusing on purchasing items in mass quantity and distributing to hundreds of stores to be sold as quickly as possible. Items found typically have no competitive product, causing sales to be successful and resulting in a sellout. Members know to buy NOW or the item is likely to be sold out on the next visit. Sales are driven on perceived and experienced demand. The next item, likely new but similar, is then brought in with the same result. This phenomenon is what drives vendors to source seasoned Costco brokers. VendorCo can help-visit www.vendorco.com or email [email protected].
St. Patrick’s Day
St. Patrick’s Day is a celebration of Saint Patrick, the foremost patron Saint of Ireland. If you are having a party to celebrate St. Paddy’s day, you need not look further than Costco. Costco offers Irish beer, Irish butter, corned beef, cabbage, and apple pie. No matter the holiday, Costco offers their members high demand foods, unique seasonal and non-foods to support your celebration.
Costco looks high and low for great suppliers to provide new food products. As you can imagine, the choices are endless for Costco and it’s nearly impossible to meet and vet all the suppliers looking to sell to them. If you are a manufacturer with a strong brand or a major manufacturer looking to produce private label goods, VendorCo can help. VendorCo offers over 32 years of Costco expertise. Email [email protected] for more information.
National Pack Your Lunch Day
Wednesday, March 10 is National Pack Your Lunch Day. A great place to stock up on your lunch items is Costco. Costco’s worldwide (all 795 of them) offer great items for your lunch. If you are looking for a great deal on (49) Nature Valley Crunchy Granola Bars, Costco is the place to shop. Other great, jumbo packed lunch items include 3 lb club pack lunch meats, twin pack super loaves of bread and (24) 20-ounce Gatorades. Eat it, share it, freeze it… no matter your plan, Costco has what you need in bulk.
Why bulk? Costco prides themselves in offering items people will consume, stock up on or resell. This is a perfect model for manufacturers looking to sell pallets of product in full containers. The result allows Costco’s almost 100M members to purchase bulk packed goods at savings other retailers do not offer. If you are a supplier of food items or non-food items and would like to explore selling to Costco, please contact [email protected].
National Day of Unplugging
To help alleviate the stress of life, March 6th has been designated as the National Day of Unplugging. With life being so demanding, it seems appropriate that a day should be set aside to unplug from electronics. We at VendorCo suggest on this very special day to enjoy your day…perhaps while pondering what electronic items you may need on March 7th or in the near future. Costco offers a wide variety of electronic items such as cell phones, air fryers, lamps, saws, plug in air fresheners, TVs, hair dryers, grooming kits, treadmills and humidifiers.
Costco prides themselves on working with great vendors who supply top quality electronic and non-electronic goods. If you offer a fun, exciting and successful item to retailers across the United States and would like to see your item sold at Costco.com or in their stores, consider VendorCo to be your product broker. Contact [email protected] or visit our website for more information at www.vendorco.com.
National Read Across America Day
In celebration of National Read Across America Day on March 2, 2021, it’s the perfect time to appreciate Costco’s book selection for readers of all ages. Costco’s members (all 98.5M of them!) shop and enjoy new top selling books by their favorite authors at a nice savings.
Like books, Costco prides itself on offering new and exciting items to their members. If you are a manufacturer or supplier of a new and exciting product that has been well received at other retailers, perhaps you should consider Costco. Contact [email protected] or visit our website www.vendorco.com to learn more about VendorCo and how we may be able to be of value to your company and its goals.
Understanding Costco Memberships: Gold Star
Costco’s Gold Star membership is designed for consumers on an entry-level basis in terms of pricing and benefits. At $60.00, this membership is for individuals who do not qualify for, or do not need a business membership. It includes a free Household Card and gets you into Costco, saving money at any warehouse or online at Costco.com. This membership is suited for customers, who do not expect the return from the 2% “cash back” program.
If you are a supplier who is seeking to bring your product into a Costco warehouse or are interested in beginning the process, VendorCo can help. Call us at 949-326-8909 or email [email protected].
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 949-326-8909 or email [email protected].
Reading Price Codes
In all retail establishments, items found on the sales floor will be accompanied by a price sign. Costco signs include the same basic information: a description, an internal identification number, a price, and supportive details about the item. However, Costco signage can often give away secret clues that can add to a shopper’s experience, but may be easily overlooked if you don’t know how to identify them.
Important to note, prices typically ending in “.97″ have been marked down. Other non-standard prices — such as items ending in .49, .79, .89 — are a sign that this is a special deal from the manufacturer. Sometimes there will be an asterisk (*) on the upper right-hand of the price tag, this indicates Costco does not have plans to re-order that product once the stock is sold out, so it’s important to move fast!
It is important to understand how Costco establishes pricing among vendors. If you are interested in submitting your product into Costco, it is vital to calculate all of the costs associated to your product. Contact one of our experts at [email protected] for more details about how our services best serve you.
Costco Miscellaneous Program Costs
This month we will be delving into the various costs, allowances, and discounts to consider before starting a program with Costco. Calculating your price is paramount to the success or fail of your product. A price that is too low may undercut your margin and result in a loss, while a price that is too high may be entirely overlooked by the buyers.
Before quoting to Costco, consider these costs that can pop-up in most programs:
- Costco Advertising Fees
- Costco Return Fees
- Costco EDI Fees
- Costco Retainer Fees
- Costco Allowances
- Costco Discounts / Markdowns
- Building in these miscellaneous fees will allow you to obtain a practical margin and be successful long-term.
It is critical to secure a well-rounded cost structure before a program starts with Costco. To help ensure that you will be successful in this venture, contact [email protected] for more details about how our services will best serve you.
Demo Staffing
As a vendor, you can choose whether or not to enlist a third party for in-house demonstrations. There are many points to consider when making this decision, including location, pricing, training, and staff availability. Costco has 2 third-party companies that they recommend, both of which will abide by and adhere to all of Costco policies and standards. Additionally, all staff members will be food safety certified. If you choose to elect a third party for demo staffing, you will be charged an hourly fee by the designated company. Often, using third-party staffers is the more convenient, but more costly choice. The best choice can vary based on your company’s specific goals.
Need help deciding which staffing option is right for you? VendorCo helps coach all of our partners through the arduous decision making process that will arise throughout your Costco program. If you want to partner with experts to help you make the right decisions, contact VendorCo at [email protected].
