VENDORCO Blog

Reason 3: Why manufacturers sell to Costco

Sat, 26 May 2012 17:41:00 GMT

Another reason why manufacturers sell to Costco is because of Costco's ordering structure. In the United States there are hundreds of warehouses, each of which requires at least one pallet of product and plenty of back stock - whether it is held in the warehouse or the depot centers. Given this structure, Costco often orders products based on truck load quantities. The high quantity of product orders is extremely attractive to manufacturers because it obviously yields high dollar amounts per purchase order.

Reason 2: Why manufacturers sell to Costco

Sat, 26 May 2012 17:30:00 GMT

A second reason why manufacturers strive to get into the Costco warehouses is the low margins that Costco places on their products. This allows manufacturers to sell their products at competitive prices without having to compromise their profit too much. Costco’s margin is static, and tends to be lower than other wholesale and retail chains. As you can see, this is structure is highly attractive to manufacturers and service providers.

Reason 1: Why manufacturers sell to Costco

Sat, 26 May 2012 17:32:00 GMT

The process of getting into a Costco warehouse can be grueling, but that does not stop countless manufacturers and service providers from trying. So why do manufacturers go to such great lengths to be placed in Costco warehouses, and why should your company?

One of the reasons why manufacturers reach for Costco wholesale is because it is the number one warehouse chain in the United States. This high status obviously yields high sales for its manufacturers over other warehouses.

New Warehouse Openings

Sat, 26 May 2012 17:24:00 GMT

Keep a look out for the following warehouse openings scheduled to open soon!

CORALVILLE, IA, USA | JUNE 27, 2012

CHICAGO (SOUTH LOOP), IL, USA | JUNE 28, 2012

PITTSFIELD TOWNSHIP, MI, USA | JUNE 29, 2012

SARASOTA SQUARE MALL, FL, USA | AUGUST 24, 2012

TAOYUAN, TAIWAN | AUGUST 28, 2012

ULSAN, KOREA | AUGUST 29, 2012

WHEATON, MD, USA | OCTOBER 18, 2012

SPANISH FORK, UT, USA | OCTOBER 25, 2012

WEST FARGO, ND, USA | OCTOBER 2012

W EDMONTON, AB, CANADA | OCTOBER 2012

GWANGMYEONG, KOREA | JANUARY 2013

HIROSHIMA, JAPAN | MARCH 2013

Warehouse Chains

Sat, 26 May 2012 17:21:00 GMT

There are three main wholesale chains that are geared toward consumers:

BJ’s Wholesale (mainly operated on the east coast)

Sam’s Club

Costco Wholesale

What are the appeals of each? Read our next few blogs for facts about each wholesaler.

Costco Wholesale continues to maintain its status as the top membership chain by sales in the United States, despite the fact that Sam’s Club has more physical locations. Costco also has a higher membership rate (approximately 55 million) and presumably a higher membership retention rate (around 87%)

Costco Facts

Sat, 26 May 2012 17:20:00 GMT

Founded by Jim Sinegal and Jeff Brotman in 1983

- Approximately 55 million members

- Nearly 600 warehouses worldwide

- President and CEO is Craig Jelinek

Craig Jelinek was the Store Manager for Costco 6thlocation, Tukwila, WA, and has worked for Costco for over 27 years

- Costco is currently the largest warehouse membership chain

- 6^th largest US retailer, 7^th largest worldwide retailer

- Membership cost: $55/year

Fun Fact: In 1991, Costco asked its employees to send in name suggestions for their private label products. The winner was Kirkland Signatures, chosen to reflect the city in which Costco had their corporate offices.

Ref: http://en.wikipedia.org/wiki/Costco

May Blogs - Costco Wholesale

Sat, 26 May 2012 17:19:00 GMT

May blogs will be dedicated to talking about Costco Wholesale, its growth, and 4 of the top reasons why manufacturers would want to sell to Costco

5/8/2012 – Costco Facts

5/10/2012 – Costco vs. other Wholesale chains

5/15/2012 – Warehouses opening soon

5/17/2012 – Reason 1: Why manufacturers sell to Costco

5/22/2012 – Reason 2: Why manufacturers sell to Costco

5/24/2012 – Reason 3: Why manufacturers sell to Costco

5/29/2012 – Reason 4: Why manufacturers sell to Costco

5/31/2012 – Reason 5: Why manufacturers sell to Costco

Stay tuned!

Where can I get help with my Costco Road Show?

Wed, 02 May 2012 02:58:00 GMT

VENDORCO offers a unique webinar, all about Costco Road Shows. If you are interested in Costco Road Shows and would like more information, you can count on VENDORCO to get your questions answered!

Click here for more information, or contact us today to sign up for a Road Show Webinar.

How should I pitch my product to Costco for Road Show placement?

Wed, 02 May 2012 02:51:00 GMT

Question to ask: How should I pitch my product to Costco for Road Show placement?

Each retailer typically has its own unique buying processes and procedures. As if this isn’t confusing enough, buying processes often vary based on the department and purchase type within a retailer. It is important to be aware of the unique buying aspects of the retailer, department AND purchase type.

Road Shows are unique from other departments within Costco, and being aware of the unique pieces will help you create a superior pitch to the buyers. Be sure that you are fully educated before proceeding.

How can you educate yourself? Sign up for a Road Show Webinar today.

How do I locate the appropriate buyer?

Fri, 23 Mar 2012 00:12:00 GMT

Question to ask: How do I locate the appropriate buyer?

This question may be a source of frustration for many vendors. Not only does Costco have unique staff for each department, but buyers also vary based on the type of placement (full roll out, ecommerce, regional, international, Road Show etc.) It is important to locate the correct buyer for the correct department; otherwise, your program may be seriously delayed.

So how do you do this? And what are the differences between Costco placement types? These questions (and many more) are also addressed through attending a Road Show Webinar. Sign up today!

What costs are associated with Costco Road Shows?

Fri, 23 Mar 2012 00:10:00 GMT

Question to ask: What costs are associated with Costco Road Shows?

The infamous saying “it takes money to make money” holds unavoidable truth; and Costco Road Shows are no exception. Selling to any retailer anywhere will require an investment up front, and you should be comfortably informed regarding the costs associated with producing your product or service to a general retailer. But what unique costs are associated with Costco Road Shows?

Before moving forward, you must have the answer to this question. You must have a clear awareness of what you are signing up for financially, and this information may not be readily available. Additionally, costs may vary from vendor to vendor, depending on the scope of your program.

Confused? We don’t blame you. Road Shows can be extremely confusing when you are not fully informed. That’s why we offer our Road Show Webinar to get your company informed and smooth the process of achieving Road Show placement.

What is the appeal of a Costco Road Show?

Fri, 23 Mar 2012 00:08:00 GMT

Question to ask: What is the appeal of a Costco Road Show?

Before pitching your product or service for Costco Road Show placement, you should know what the appeal of a Costco Road Show is, on multiple levels. First, how are Road Shows appealing to consumers? And second, how are Road Shows appealing to manufacturers/Costco vendors? Essentially, what value do consumers and manufacturers get out of Costco Road Show placement?

Having the answer to this question will help you develop your product offer in a way that is conducive to the intention of Costco Road Shows.

So what’s the answer? We talk all about the appeal of Costco Road Shows in our Road Show Webinar

What are Costco Road Shows?

Fri, 23 Mar 2012 00:07:00 GMT

Costco Road Shows are often referred to as Special Events. Special Events provide opportunities for manufacturers and service providers to sell their products in Costco warehouses, but are subjected to unique processes and procedures compared to full roll out items.

What are these unique processes/procedures? Find out by attending a Road Show Webinar hosted by VENDORCO. Follow the link HERE for more information or to purchase.

April Blogs - Costco Road Shows, Revisited

Wed, 02 May 2012 02:49:00 GMT

In response to popular demand, this month we are once again looking at Costco Road Shows. As the retail arena is constantly changing, our blog visitors have been asking for updated attention to Costco Road Shows. You asked for it; we are delivering.

This month we will provide a very basic overview of what Costco Road Shows are, and challenge you to ask questions about whether or not a Costco Road Show is right for you. HOWEVER, if you are looking for detailed information and/or step-by-step advice, then you should attend one of our Road Show Webinars. For more information, stay tuned or visit: http://www.vendorco.com/roadshow-info

Questions to ask yourself before moving forward with a Costco Road Show:

What are Costco Road Shows?

What is the appeal of a Costco Road Show?

What costs are associated with Costco Road Shows?

How do I locate the appropriate buyer?

How should I pitch my product to Costco for Road Show placement?

How can I get help?!

Stay tuned!

VENDORCO Telephone Consultation

Thu, 22 Mar 2012 23:00:00 GMT

Did you know that VENDORCO offers business consultations?

This option is perfect for starter companies, growing businesses, or anyone interested in Costco Product placement. A 20 minute phone call with one of our experts has the potential to radically reorient the direction of your business. Spring into action, propel yourself into retail and purchase a 20 minute telephone consultation today!