Costco requiring membership for food court

[Quattro Pete]

Originally Posted by JustinH
does someone really want to go out of their way to get a dollar hot dog, if they aren't already in costco shopping?

Maybe they're going there to buy booze (which does not require membership in many states), and loading up on wieners while there?

 

[bullwinkle]

I'll have to ask next time I'm in to work on their yogurt & smoothie machines, they've always told me that one doesn't have to be a member (to eat there or go to the pharmacy), and they're generally PACKED at lunch. This will hurt their lunch business, for sure.

 

[eljefino]

The guy at the door checking cards is to make you feel special, like you're getting a deal only a select few qualify for.

I'm an on-again, off-again BJs member. They sell me propane at the member price when I tell them I don't have a card.

Food court's only gonna care if someone makes them care.

 

[hatt]

Originally Posted by JeffKeryk
Costco hot dog and soda have been $1.50 since they opened.
I think it is a loss leader, like the $5 chickens and tire shop.

Listening to the Costco brass a few years ago, they don't make much/anything on pretty much everything in the store. They're in the membership selling business.

 

[spk2000]

We have a hospital being built next door and across the street in Louisville, KY. Contractors pack the parking lot and if you go in to order a pizza or get a hot dog the lines are full of contractors. Makes it a pain on both of these for members that have paid for a membership.

 

[Hall]

Originally Posted by DBMaster
You still do not need a membership to use the Costco pharmacy.

That's a legal thing apparently. You're in TX it seems and I know in Ohio it's the same - anyone can get prescriptions from Costco, Sam's Club, etc as well as eye exams. I'm guessing there's a federal law that says you can't require any sort of "membership" for non-over-the-counter medical products or services (??). Glasses and contacts don't count though. I can get an eye exam at Sam's w/o a membership but I can't buy glasses or contacts there.

 

[DBMaster]

When I had a Costco membership my son always had to have a hot dog when we went there. They are actually high quality beef hot dogs - if you are a fan of processed meat like I am. I never cared enough to stand in line for them, honestly.

 

[pitzel]

Originally Posted by hatt
Originally Posted by JeffKeryk
Costco hot dog and soda have been $1.50 since they opened.
I think it is a loss leader, like the $5 chickens and tire shop.

Listening to the Costco brass a few years ago, they don't make much/anything on pretty much everything in the store. They're in the membership selling business.


That's a bunch of nonsense. Costco prices are easily higher than most discount retail grocery outlets that compete with them. The big Costco 'advantage' is that they generally have what they advertise, ie: you can actually run a business by buying inputs at Costco because they have a supply chain that can keep the shelves stocked.

 

[PW01]

Why would anyone expect to buy anything from, or use any service of, Costco without buying a membership?

 

[simple_gifts]

Originally Posted by pitzel
Originally Posted by hatt
Originally Posted by JeffKeryk
Costco hot dog and soda have been $1.50 since they opened.
I think it is a loss leader, like the $5 chickens and tire shop.

Listening to the Costco brass a few years ago, they don't make much/anything on pretty much everything in the store. They're in the membership selling business.


That's a bunch of nonsense. Costco prices are easily higher than most discount retail grocery outlets that compete with them. The big Costco 'advantage' is that they generally have what they advertise, ie: you can actually run a business by buying inputs at Costco because they have a supply chain that can keep the shelves stocked.


Plenty of places report the majority of profits for costco come from membership fees; i have no issue with that

 

[bdcardinal]

The Costco here has an outdoor food court, I wonder if this would only apply to stores with indoor food courts?

 

[doitmyself]

Costco is a pretty good place to work for. After approximately 3 years you can top out around $27/hour ($41 on Sundays). They have very good benefits too. Stepping up to salaried positions is not too hard, but the extra hours put in has to be considered, along with the extra stress. https://futurefuel.io/employee-benefits/costco-careers/

 

[CKN]

It's a well known fact and on their last quarterly report that as a whole THEY WOULD LOSE MONEY if not for the membership fees. Again-per their quarterly report.

So yes-the amount they pay their workers would not work with what they charge for their products without the membership fees.

 

[Hall]

Originally Posted by pitzel
That's a bunch of nonsense. Costco prices are easily higher than most discount retail grocery outlets that compete with them.

Huh ? You're mixing prices up with profits. Groceries typically operate in the 10% margin on the goods they sell. Granted, Costco sells more than just 'food' items. A membership is almost 100% profit. Even Costco, in their annual report, says "The membership format is an integral part of our business and has a significant effect on our profitability".

 

[bbhero]

Originally Posted by CKN
It's a well known fact and on their last quarterly report that as a whole THEY WOULD LOSE MONEY if not for the membership fees. Again-per their quarterly report.

So yes-the amount they pay their workers would not work with what they charge for their products without the membership fees.




There ya go ^^^^^^^^^^^^^^^^


Post of the day winner here...

 

[Rmay635703]

Originally Posted by PW01
Why would anyone expect to buy anything from, or use any service of, Costco without buying a membership?


Membership stores are a recent advent and unnecessary.

Reality as mentioned is that many groceries even Aldi have sales and clearance priced far below Cosco

Only reason to go there is for "unique " overpriced name brands.

Nice once and a while but certainly not worth a member ship fee for the small amount I would purchase

And yes feel the same way about Sams

 

[Nick1994]

Originally Posted by Rmay635703
Originally Posted by PW01
Why would anyone expect to buy anything from, or use any service of, Costco without buying a membership?


Membership stores are a recent advent and unnecessary.

Reality as mentioned is that many groceries even Aldi have sales and clearance priced far below Cosco

Only reason to go there is for "unique " overpriced name brands.

Nice once and a while but certainly not worth a member ship fee for the small amount I would purchase

And yes feel the same way about Sams

My savings at Costco's gas station easily pays for my membership.

 

[Wolf359]

Originally Posted by Rmay635703
Originally Posted by PW01
Why would anyone expect to buy anything from, or use any service of, Costco without buying a membership?


Membership stores are a recent advent and unnecessary.

Reality as mentioned is that many groceries even Aldi have sales and clearance priced far below Cosco

Only reason to go there is for "unique " overpriced name brands.

Nice once and a while but certainly not worth a member ship fee for the small amount I would purchase

And yes feel the same way about Sams


Basically the way Costco works is that they have about an 18% markup on their costs. Other stores have bigger markups. For instance on books, the lowest you go on a wholesale purchase is probably in the 40-60% of list price. Assume the larger stores pay 40% of list price. They can still discount 20%-25% off list price and make 35-40% of list price. If Costco just tacks on 18% you could be paying 47.2% of list price. Books tend to have big margins but other grocery items are much less. Because Costco doesn't really have big sales like the grocery stores that basically have sales that sell at cost, you can sometimes find better deals at the local grocery store than Costco. But if you buy a lot at Costco, you might average out paying less for the same grocery basket. If you only buy stuff on sale at the grocery store, then Costco probably isn't that cheap. But sometimes you can't wait for a sale and just have to grab stuff.

As for the membership fees, the point has been made multiple times, if you look at their total profit, it's about what they make in membership fees.

 

[NO2]

In Michigan you can only purchase alcoholic beverages without a membership. Same price.

 

[Mad_Hatter]

Originally Posted by Wolf359
Basically the way Costco works is that they have about an 18% markup on their costs. Other stores have bigger markups. For instance on books, the lowest you go on a wholesale purchase is probably in the 40-60% of list price. Assume the larger stores pay 40% of list price. They can still discount 20%-25% off list price and make 35-40% of list price. If Costco just tacks on 18% you could be paying 47.2% of list price. Books tend to have big margins but other grocery items are much less. Because Costco doesn't really have big sales like the grocery stores that basically have sales that sell at cost, you can sometimes find better deals at the local grocery store than Costco. But if you buy a lot at Costco, you might average out paying less for the same grocery basket. If you only buy stuff on sale at the grocery store, then Costco probably isn't that cheap. But sometimes you can't wait for a sale and just have to grab stuff.

WinCo foods is a big warehouse employee owned chain here in the PacNW. I think they're based in ID. Anyhow, they're about as cheap price wise as it gets. It's kind of a frenzied shopping experience, which I'm not fond of, and you bag your own groceries. But it's hard to beat, even for Costco, their day to day prices and you don't do memberships. But like I said, it's pretty bare bones shopping.. don't expect employees roaming around offering to assist you. The checkers there can make good money and since it's employee owned they do some ESOP thing I think.