Costco Demos

One of the best ways to introduce new products into Costco Warehouses is through Demos. Demos are one of the most popular attractions that Costco has created, especially for foods items. This month, we will be probing into Demos, specifically the process of how Costco chooses to put products to demonstrate based on the geography and often based on company size.

To be discussed this month will be the following topics:

  • About Demos
  • Food Demos
  • Non-Food Demos
  • Demo Staffing
  • Demo Training
  • Demo Pricing
  • More Information

Visit our blog throughout this month for more information concerning the titles above. If you’re interested in having your product demonstrated at Costco warehouses and would like an expert Costco Representative to assist, contact us today at costcodemos@vendorco.com.

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.

Costco Shipping Third Party

As part of Costco.com’s shipping options, vendors may have the opportunity to utilize a third party shipping account. Regardless of the amount of shipping your company does, it likely does not amount to the volume Costco.com experiences on a daily basis. Higher volumes lead to better, more competitive shipping rates, which is great for the vendor, Costco, and the member.

There are specific steps that you must take in order to qualify for and/or obtain a 3rd party ship account, and this starts with the presentation process. Is it in your best interest to obtain a 3rd party shipping account? Are you having trouble deciding? What more do you need to know about this process before moving forward?

A knowledgeable rep can help answer all of these questions, and more. If you choose to partner with a representative company like VendorCo, you will be more equipped and prepared to make the best decisions for your Costco program. Contact us today to get started, at help@vendorco.com.

November Blogs – FAQ’s

Every day we receive thousands of visits to our website from people like you looking for answers or help with their Costco program. VendorCo is a Costco representative company, helping countless companies reach success with their program. We understand that not all manufacturers wish to work with a representative, and some of you are simply looking for answers to common questions.

Over the past 6 months, we have compiled a list of the top questions we receive through our website. Through this month and next month, we will address the top questions that we receive. November will be focused on answering your Costco questions. Here is a list of the top questions received through our website:

Is there a step by step guide to Costco placement?

How can I get a Costco buyer list?

How can I get a Costco vendor guide?

How can I gain access to Costco’s vendor portal?

Where can I send my products for Costco review?

How can I get a copy of the documents required for Costco vendor set-up?

What are Costco’s vendor requirements?

If you have additional questions that are not addressed here, contact us to see how we can help @ help@vendorco.com

Costco In-Store Testing

Before the buyers will commit to reserving space on their sales floors for you item, they need be absolutely certain that the item will be valuable to Costco members. One way Costco does this is by putting products through a Costco test. If your item is under review for Costco placement, you will most likely be required to participate in a test program before proceeding to a full roll out.

It is important to understand exactly what a Costco Test entails, so you are aware of how to proceed before, during, and after the program. For assistance, preparation, and answers regarding a Costco test program, contact VendorCo at help@vendorco.com.

About Costco.com

Initiated in 1998 by David Sinegal, son of former CEO Jim Sinegal, Costco.com is a fairly new and growing avenue of Costco. In 2012, approximately 30% of Costco members shopped on Costco.com. While this may seem like a low and perhaps even discouraging number for potential vendors, Costco.com still manages to receive millions of monthly page views and billions in annual sales. In 2008, only 12% percent of members shopped on Costco.com. This large increase in member traction speaks to the enormous potential Costco.com holds for the future.

While Costco.com product sales are certainly not as high as in-store sales, Costco.com does offer several advantages to vendors and members alike. Both parties have a lot to gain from pursuing this avenue, and our next posts will explore the many advantages Costco.com offers.

Visit our next blog to read all about Costco.com member advantages

Costco Regional

If you are interested in regional distribution, or if your item is a foods item, then you should focus on Costco regional sales. The regional sales buying group is separate from the national buying group, so you will need to keep this in mind before you move forward.

Additionally, you should understand the distribution of each region, including the number of warehouses per region and how the regions are geographically broken up. Once you understand how Costco regions are separated, you will have a better idea of which region(s) to target.

If you would like more information about whether or not regional distribution is right for you, contact Vendorco at regional@vendorco.com

Costco Business Delivery

Costco Business Delivery serves both the ecommerce and the brick and mortar markets, with a limited number of Business Deliver Centers spanning the US. This avenue of Costco is intended specifically for business owners, which make up a significant portion of Costco’s member demographic.

Items found in a Costco Business Center differ from a typical warehouse, in that many items intended for personal use are omitted and replaced with those serving a business purpose. For example, instead of personal garments you might find scrubs or janitorial uniforms. Instead of daily use pots and pans, you might find commercial kitchen appliances and equipment.

If your item serves the small to medium business market, then Costco’s business delivery may be a good fit for you. For more information about Costco Business Delivery, or to speak to a VendorCo sales representative, call us at (949)326-8909 or e-mail costcobd@vendorco.com

Become a Costco Supplier

When you become a Costco supplier, you have the potential to help your business grow in many ways. Costco serves millions of members throughout the United States from a high end demographic. These members continually renew their memberships from year-to-year (with a renewal rate of over 85%!), and their shopping habits are generally resilient to the changing economy. For these, and many more reasons, becoming a Costco supplier can be extremely beneficial and lucrative.

However, you cannot simply walk into Costco and ask to sell your product. You have to know who to talk to, how to talk to them, and you must have a valuable product that is in high demand. Equally as important, you must understand the Costco business model and follow appropriate guidelines. But this is not always so easy to do. Information about how to become a Costco supplier is not readily available for research. Many important pieces of information are considered to be trade secrets, and information that IS available may not always be completely reliable or accurate.

So how do you become a Costco supplier? You can do what many companies do, and spend hours upon hours researching information that may not be available regarding Costco’s procedures, and hope that your product in its current package is Costco material. OR you can seek help through a Costco professional, and gain an edge against the competition. This is where VendorCo comes in. Having VendorCo on your side provides you with access to a team of experts that are committed to helping you become a Costco supplier. If your product is not appropriate for Costco, then we can steer you in the right direction rather than allow you to waste your precious time.

Give one of our representatives a call today to get started! Contact VendorCo: help@vendorco.com or (949) 326-8909.

Become A Costco Vendor

To become a Costco Vendor is a dream of many (if not most) manufacturers and service providers. With the potential to place your products in hundreds of stores nationwide, with millions of members to view on monthly basis, who wouldn’t want to partner with this retail/wholesale giant?

However, only a select number of manufacturers and service providers actually succeed at becoming a Costco vendor. This is partially due to Costco’s limited SKU count of approximately 4,000 items per store (compared to WalMart and Target with upwards of 100,000 SKU’s!). But for most vendors, this is because the processes and procedures required to navigate Costco Wholesale can be vastly distinct from other retail avenues. Most executives and administrative personnel, even those who are avid Costco shoppers, are unaware of the unique buying strategies utilized by Costco’s corporate contacts. Obtaining this information can prove to be exceptionally difficult, if not impossible, and the sales techniques you are accustomed to using may actually serve to undercut your potential relationship.

So how do you become a Costco vendor? How do you become a Costco.com vendor?

Fortunately, VendorCo can help you. VendorCo is a full service manufacturer representative company specializing exclusively in Costco Wholesale programs. With over a decade of Costco specific experience, our Senior Account Managers can be an invaluable asset to your Costco program. We have helped many companies become Costco vendors, and you could be next! Read just a sample of our success stories, and imagine what you can achieve when you partner with a global retailer like Costco.

Ready to get started now? Contact VendorCo to speak with a Costco expert at help@vendorco.com

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