An energy drink company was able to secure regional sales at Costco’s warehouses. After performing a sales analysis of their current distribution, which was largely to C-Stores, the company found that diet energy drinks were 30% of their sales volume, while regular energy drinks were 70% of sales volume. The company chose to base their Costco test on this sales data, providing 70% regular and 30% diet energy drinks to Costco. However, the company failed to take into account Costco’s demographic data provided to them, and they experienced a lack of inventory for diet drinks, and a surplus of regular energy drinks. Due to this miscalculation, the test failed.

What NOT to do with Costco? Never underestimate Costco’s demographic. It is extremely important to be cognizant of who you will see your product on Costco’s sales floor. VendorCo can help your company avoid costly miscalculations like this that can result in a failed test, 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.