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One of Costco's biggest innovations was figuring out how to manage channel conflict for its everyday products.

• neonate 7y ago
  What's channel conflict?
  • _jal 7y ago
    I make widgets, and contract with you to sell my widgets exclusively in some geographic region. Then I start selling my widgets on my website, and people from your region start buying things via my site. We have a channel conflict. They happen in other ways as well.
    • Drdrdrq 7y ago
      Thx. So how does Costco manage this?
      • phamilton 7y ago
        Often by selling Costco specific versions of things. For example, Google Wifi is normally available in 1 packs and 3 packs, but Costco offers a 4 pack. It's literally just a 1 pack and 3 pack put into a bigger box, but it sells for $299 vs the 3 pack at $259.
        • foogazi 7y ago
          Yes this specifically I bought the 4 pack and it was weird that it was packaged 3 & 1