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> Unless you're in a niche that people are willing to pay a margin for or serve upscale customers who also don't mind paying margins (Costco, Whole Foods, Nords
by kevinconaway 8y ago
> Unless you're in a niche that people are willing to pay a margin for or serve upscale customers who also don't mind paying margins (Costco, Whole Foods, Nordstroms, Apple, etc)
Is it fair to lump Costco in with these other companies as an example of places where consumers don't mind paying higher margins?
From a quick google search on gross profit margins:
- Costco: 13%
- Nordstrom: 38%
- Apple: 38%
- Costco: 33%
Costco's is also likely skewed due to their house brand where they likely make a much higher margin than the name brands
- lotsofpulp 8y agoI lumped Costco in there just because its known for paying above average wages. I don't see these 4 stores outside of affluent, or at least upper middle class areas. I would say even Trader Joes can be lumped into there. But the point is that if Walmart or Sams club wanted to raise their wages to match Costco, it would hurt their business because their customers can't afford it.