Friday, May 26, 2006

I think it's important to note

the following tidbits, from Wikipedia: Costco.

"Costco's success is a result of its focus on selling products at low prices, often at very high volume. These goods are usually bulk-packaged and sold primarily to large families, small businesses and small business owners' families.

"Costco is able to charge sometimes astonishingly low prices by keeping overhead low, returning savings to consumers. In fact, many senior executives, including Costco's CEO, use office furniture that was purchased from the Boeing Company when Costco was started. Costco doesn't have a public relations department either, believing it is unnecessary. The corporate jet is not used unless it is filled to capacity....Costco caps its profit margin on most products at 14% and allows itself slightly higher margins only on its Kirkland Signature store brand (a name derived from its previous headquarters in Kirkland) with a strict 15% profit limit.[1]

"
Costco concentrates more on overall value than the lowest possible price for its product range. Many of the products it stocks are high quality at a reasonable cost instead of inferior quality at a low price.

"Costco is noted for providing full benefits and comparatively generous compensation to its employees. For instance, a cashier with four years of experience can earn more than $40,000 with full benefits, including medical, dental, Rx, disability, and life, and is even entitled to participate in a 401k program and purchase stock options....These perks are the highest in the industry and especially surprising considering Costco's price-centric sales strategy (similar to Wal-Mart's, a company criticized for its low pay and refusal to offer benefits to some employees). A recent estimate (New York Times, July 17, 2005) puts Costco's average pay at $17 per hour, or 42% higher than Wal-Mart-owned Sam's Club. Wall Street analyst Bill Dreher of Deutsche Bank criticized Mr. Sinegal in 2004, saying "it's better to be an employee or a customer than a shareholder."

"Costco has a very generous product return policy that allows customers to return most products indefinitely. Unlike other stores, Costco allows returns of opened media. Many people take advantage of this with DVDs, software and other media. Buyers effectively "rent" the product temporarily by buying and later returning it for a refund. Computers, which most retailers loathe to accept for a refund, have a six-month return period. Even the membership fee is fully refundable at any time. These policies are considered a significant factor in Costco's high rate of customer loyalty, although it is true that some people of questionable morals do abuse the generous return policy.

"Costco is also well known for its hot dog stands. These began as stand-alone impromptu arrangements outside of warehouses but are now built directly into current warehouses as actual mini-restaurants. The price of the hot dog and soda is still the same price as it was when they first opened ($1.50)- a price Jim Sinegal has stated will remain indefinitely. The hot dogs used are kosher and the brands used are Sinai Kosher or Hebrew National."

What a classy company. Such premium service.

21 comments:

JB said...

I think it's important to note that you posted this twice... blogger's having issues today?

Anonymous said...

Not twice but thrice. The same thing happened on Brozy's blog, so I'm guessing Blogger had some sort of hiccup.

Lunkwill said...

Gosh, when I look at that page, I see a big warning that the article is horribly biased. Apparently it was a little too breathless, so the community got together and edited out some things.

Braden said...

Dang it. And I so cheerfully mocked 'Brozy for triple-posting.

Also, it wasn't disputed *before* I wrote that post. Seriously.

Braden said...

Sorry, JB, but I'm deleting the other copies. Your comment on the second one:

"You're just updating like a madman these days! ;)

"Costco is really cool. Their membership fee seems a lot more worth it given the benefits they offer.

"Thanks for the info!"

Braden said...

HAHAHAHA. Ah, Lunkwill, your friend and mine, the Wikipedia community.

Braden said...

Wow. Can't say that I agree with the community's decision to remove such objective figures as average salary and turnover rate.

Lunkwill said...

Ah, but objective only if they're in fact true. They were posted without any source, which makes them suspicious -- they're exactly the sort of thing an insider might know and be inclined to post, in which case they're much more likely to convey a biased viewpoint despite being facts themselves. Wouldn't it seem strange to add a paragraph like that yourself, and then not even mention where you came across such data?

Anonymous said...

I have to admit that the more I read Wikipedia, the more I dislike it. It's a nice resource at times, but I just can't trust anything that's not properly cited. And then there's the fact that you could spend a lifetime just copy editing the darn thing.

Braden said...

The average pay, at least, was from the New York Times article at the bottom. You're right that they should have cited it in the text, but if you cut every uncited fact in Wikipedia as it stands, there'll be little left.

Th. said...

.

I was going to mention the NYT article, but I guess it's unnecessary now.

Less than a year ago, in either Science or Nature (this isn't Wikipedia so I'm not going to find my course), a comparison was made between Enclyclopedia Britannica and Wikipedia (hard science articles only). They found roughly the same rates of errors, from typos to serious mistakes, in both.

Interesting, no?

Braden said...

Quite so. I've heard that before, actually, but it makes more sense when we're only talking about hard science.

B.G. Christensen said...

Biased or not, the gist of the Wikipedia article rings true to what I've read, heard, and experienced with Costco elsewhere. I'm willing to pay the relatively inexpensive membership fee and the slightly-higher-than-Wal*Mart prices to get superior quality and to know that the workers are being treated fairly.

Braden said...

Thanks, Master Fob.

Emily said...

That's like Google.

I've heard they treat their people really nicely, too.

Katherine said...

Much-delayed answer:

I should probably be more concerned about online privacy, but I'm generally pretty open about things and only a handful of people regularly read my blog. Also, the odds of some psycho randomly coming across it and deciding to hunt me down are slim--and perhaps I underestimate the ease of finding someone with only a picture and first name.

What do you think?

Th. said...

.

I don't think. Not if I can help it.

And I meant to say that the survey was only of hard science articles.

I heard about it on NPR. The scientist who ran the survey and was interviewed also encourages his colleages in all fields to proof and improve Wikipedia articles in their field.

Braden said...

You did say so. And NPR rocks for that.

Th. said...

.

If you want to look for it, I heard it on All Things Considered in December.

Katya said...

Here's the ATC Wikipedia link:

http://www.npr.org/templates/story/story.php?storyId=5055388

Braden said...

Thanks, you two.