VendorCo created an innovative program for Costco that involved the sale of artificial turf. Our Executive Account Managers contacted a reputable artificial turf company to fulfill the program, and it was quickly approved by Costco. Because there was no preceding product like it, the expected return rate was unknown, and the vendor grew fearful of Costco’s return guarantee. VendorCo recognized that a new product carried enormous potential, and strongly advocated for follow through with the program. However, against the direction of VendorCo, the company informed Costco that they would no longer be moving forward with the program. Still, the Costco buyers believed in the program that VendorCo created, and they were able to source out another company that was willing to adhere to Costco’s return policy. Within the first year, the program sold over 2 million dollars worth of product. Unfortunately for VendorCo’s client, they lost a potential relationship with Costco due to fear, and the revenue that could have been theirs ended up in the hands of a competitor.
What NOT to do? Never pull out of a Costco program, unless you are sure that your company cannot handle the account. However, if your company is unable to handle the account, you should never waste the time of Costco buyers by even presenting it until you are. At VendorCo, we screen our clients for Costco readiness, and we are happy to tell you our opinion on whether or not your company is ready for Costco. If you are an established company that is willing to serve Costco and its members, contact VendorCo today and we can help you position your product for maximized potential.