Costco in-store sales can be defined in many ways. In-store sales may also be defined as in-line sales, national sales, warehouse sales, full roll out sales, or simply as Costco sales. In-store sales are the most common and the most sought after category of Costco sales; likely because they are typically the most profitable. When visiting your local Costco warehouse, most of the palletized items that you see on the sales floor are considered in-store sales (with the exception of Road Show and Test items).
Becoming a Costco vendor certainly has its benefits, one of which is the potential for a long term relationship with Costco, the number one warehouse chain in the United States. In fact, Costco appreciates and places a higher value on manufacturers and service providers that offer the potential for multiple placements down the road. So, if your company currently offers only one product, then your chances of becoming a Costco vendor are significantly more difficult than a competitor offering multiple products. Sure, you can make the argument that you will continue to transition the same product in and out of Costco for a long period of time, but the scope of your relationship remains limited.
If you are a company with only one product or if you have been turned down because your potential relationship is perceived as limited or temporary, there may still be an opportunity to gain a relationship with Costco. VendorCo is constantly researching unique ways to assist hopeful Costco vendors, and we have developed a unique program specific to smaller companies, or companies with a limited scope. If your company falls in this category, contact us today for more information on how we can help you.
The importance of your product presentation cannot be stressed enough. If your presentation is flawed, you risk missing out on an exceptionally lucrative relationship. It is important to note, that when we refer to flawed presentation, we do not mean simple errors that could be noticed by any writer, marketing expert, financial representative, etc. When we refer to flawed presentation, we are referring to presentations that do not provide adequate information that is specific to a Costco program.
Did you know that some Costco departments have a checklist for the information that they require to be included? Missing information may result in your presentation being overlooked entirely. Costco buyers view countless presentations on a daily basis, and they simply do not have the time to hand-hold every offer and provide you with a detailed list of what they need. It is the vendor’s responsibility to ensure that all necessary information is provided.
However, there is a balance between providing enough information, and providing too much. Too much erroneous information and fluffy dialogue can distract from the points that Costco finds exceptionally valuable. As previously noted, Costco buyers are busy! They certainly will not be interested in a 50 page presentation that requires a large chunk of their time to analyze, especially when the information they require should easily fit on just a few, simple pages. It is important to include all important details, while still respecting the buyer’s busy schedule. The easier you make their job…well, I’m sure you can imagine the benefits that will provide you.
VendorCo has perfected the presentation process based on years of experience working with Costco buyers. We are aware of the information the buyers are looking for, in the format they prefer, through the avenue they appreciate. As a VendorCo client, we can even create the presentation for you, providing you access to our trade secrets that can only be acquired through years of experience. If you are interested in taking advantage of VendorCo’s knowledge of the Costco processes, contact us today!
One of Costco’s top priorities is to ensure that members receive an added value from all of the products on their sales floor. You should ask yourself: what value does your item offer Costco members that they are not already receiving from existing products, services, or programs? It is not always enough to say that your product is available at a better price!
Do you know how your product compares to Costco’s current offerings? Does your product offer enough of a value to Costco members? Send us some information about your product, and we will let you know if we believe your product is a viable fit for Costco. Contact VendorCo today to take advantage of over 20 years of Costco specific expertise.
A furniture company designed a collapsible, all-in-one style camping chair that was perceived to be a great product for Costco members; however, when removed from its packaging, the chair could not self-assemble quickly. It did not open and close well, and was therefore not usable right out of the package. Faulty product functionality like this can result in an onslaught of returns, possible recalls, a bustling customer service department, and of course, an extreme loss in revenue and reputation. All products must be consumer friendly and easy to install right out of the box with all necessary parts and instructions included before it can reach a retail audience.
What NOT to do with Costco? Never place an item on Costco’s sales floors that is flawed, in any way. VendorCo can help your company avoid costly miscalculations that can result in buyer disinterest, as well as damage to your reputation and relationships with the buyers.
Find out if your product qualifies as a Costco ready item, and contact VendorCo today for expert representation
VendorCo is selective of the companies that we choose to represent. Our goal is to form long term relationships with established manufacturers and service providers, while continuing to strengthen our clients’ relationships with Costco. We seek to partner with companies that are also looking for long-term solutions to their Costco sales needs. Over time, we work for you to help the buyers recognize your company and appreciate your products. This relationship is not formed over night; it takes time, patience, and follow-through that VendorCo is prepared and qualified to assist you with.
At VendorCo, we tailor to your needs, assist you with preparation and presentation, and follow-up and follow through throughout the duration of our representation. If you are looking for a long-term partnership where you receive all of these benefits, contact us today!
Let’s say that you have now presented your product to the Costco buyers. What should you do if your program is denied? And what are the next steps if your program is approved? VendorCo’s clients receive ongoing assistance, whether it requires following up with a rejected program, or following through with one that is accepted.
If your program is denied, VendorCo can help gather feedback, as well as assist and consult you with repositioning your product pitch, redesigning elements of your product and packaging, or selecting additional items to present in your next round with the buyers. In addition, we provide a suggested timeline for following up depending on the department, product, and reason for rejection.
If your program is approved, VendorCo will be by your side throughout all of the various administrative tasks, as well as prepare you for what to expect when the program begins. With VendorCo’s assistance, our experts become part of your team, assisting you throughout all steps in the process. In addition, we continue to provide our feedback and suggestions regarding advertising and other opportunities that enhance visibility of your product and potentially increase revenue.
If you are interested in adding VendorCo’s experts to your team, contact us today.
Every retailer goes about their buying processes differently, and from our experience, many companies miscalculate Costco’s procedures. Unfortunately, even the smallest errors in presenting your product can result in a rejection of your program. At VendorCo, we work with the Costco buyers on a daily basis, and we know the processes and procedures that work in getting your items on the sales floor.
As a VendorCo client, you will receive assistance with all aspects of your presentation. This includes consultations that prepare you for what to expect, how to contact Costco buyers, what specific information should be included in your presentation, and much, much more. Additionally, we will not only be by your side through all steps in the process, but we will help pave the way to greater success.
We understand that you are the experts in your business, but we also recognize that most companies are not experts in Costco’s business. It is extremely difficult to reach this status and truly understand all that Costco has to offer. Fortunately, with over 20 years of experience our executive account managers at VendorCo are Costco experts, and we can help you position your company to reach its highest potential with Costco.
If you are interested in working with Costco and would like assistance with preparation and presentation from VendorCo, contact us today.
VendorCo is committing to serving the individual needs of our clients. Some manufacturers and service providers come to us with a Costco ready brand and product packaging, and they simply need assistance preparing, presenting, and moving forward with their program. Others come to us with a strong brand for retail, but the look and feel of their brand may not be appropriate or well-suited for Costco specifically. We witness a variety of different manufacturers and service providers with a variety of different needs that we are ready and willing to serve.
Many of our clients are unaware of just how much work is needed to move forward with a Costco program, but we perform a detailed analysis of your company brand, product, packaging, etc. to inform you of what will be required to move forward. Our feedback and recommendations are directed toward your specific needs. From customer service assistance to accounting and invoicing, VendorCo is prepared and qualified to provide tailored assistance to your company.
If you are interested in working with Costco and would like tailored assistance from VendorCo, contact us today. We will analyze your company and create a partnership that is customized according to your needs.
Deciding to form a business partnership is not a decision that is to be taken lightly. There must be comfort and confidence within both parties in order to form a cohesive relationship, and the servicing company should be able to clearly communicate the benefits of a partnership. VendorCo takes this commitment seriously, which is why this month we will be focusing on the services that you receive when you choose VendorCo as your manufacturer representative.
When you partner with VendorCo, your company becomes part of a team with over 20 years of Costco experience. This experience is tied to an array of invaluable benefits that can save you time and money – not to mention stress and strain associated with any unfamiliar retail program. Though certainly not an exhaustive list, the following posts will cover several of the benefits our clients receive:
Happy New Year!