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"But Mr. Sinegal warned that if Costco increased markups to 16 or 18 percent, the company might slip down a dangerous slope and lose discipline in minimizing co
by brett 19y ago
"But Mr. Sinegal warned that if Costco increased markups to 16 or 18 percent, the company might slip down a dangerous slope and lose discipline in minimizing costs and prices."
Costco's strict attitude toward product markup reminds me of 37Signals frequent assertion that often constraints are a good thing to be embraced.
- toffer 19y agoCostco also has parallels with Craigslist: 1) Wall Street can't understand why they don't "maximize revenue" by raising prices. 2) They are determined to never allow another company to come in under them and beat their prices. Both companies stay focused on their customers and the long-term, rather than their critics and the short-term.
- Jd 19y ago<blockquote>Costco's strict attitude toward product markup reminds me of 37Signals frequent assertion that often constraints are a good thing to be embraced.</blockquote> Rails, Grails, Unit tests, woo!