4 ms·
> If you aren't ripping them off you're leaving money on the table You're leaving money in their pocket that you might get later How do you quantify loyalty?
by alickz 2y ago
> If you aren't ripping them off you're leaving money on the table
You're leaving money in their pocket that you might get later
How do you quantify loyalty? Because it seems to me that it's very easy for individuals to prioritise short term gains at the cost of medium and long term losses due to trust erosion
I wonder how much client satisfaction and trust would be worth on the quarterly report, if it could be calculated. I think it would be immense for most companies
- Dalewyn 2y agoMoney in their pocket is not money on the table. You are in fact reinforcing my point: Client loyalty and trust is critical in business, you're a lousy businessman if you've damaged that by ripping off your clients too hard angering them. The most effective business is getting all the money on the table and making your client happy. Thusly the art of business, ripping off your client without pissing them off. Absolutely nobody gets ahead in business by selling wares cheaper than what they could have gone for, unless you are deliberately underselling the market to gain share by sheer force of will. Likewise by selling wares higher than what they could have gone for, clients will just look elsewhere because you're just another one of many merchants.
- queuebert 2y ago> Absolutely nobody gets ahead in business by selling wares cheaper than what they could have gone for, ... Explain Costco then.
- Bloating 2y agoVolume. Its all relative to your less efficient competitor
- BenjiWiebe 2y agoDidn't Costco get volume by selling things cheaper then they could have?
- brianwawok 2y agoThey also have less items for sale so each sells more.
- datavirtue 2y agoPeople with Costco memberships view shopping as a sport. Instead of golfing, they go buy shit and eat hot dogs.
- isk517 2y agoCostco makes the majority of profit from membership fees, they've already profited from you before you have even made your first purchase. Arguable any profit they make from what you purchase is where you are being 'ripped off' but because the savings and return policies are better than the competition they avoid the 'pissing off'.
- gopher_space 2y agoIsn’t a membership like $35 a year?
- brianwawok 2y ago$60 or $120
- queuebert 2y agoAre you sure about that? Their average markup is around 10%, so that would mean that the average member would be spending $600 or less in the store per year.
- isk517 2y agohttps://www.forbes.com/sites/shelleykohan/2023/10/24/costco-members-loyalty-seems-immune-to-changes-in-leadership-and-price/ https://www.forbes.com/sites/shelleykohan/2023/10/24/costco-... I've seen the same numbers in multiple articles state that 72% of Costco's profits came from the membership fee in a year that they saw record sales.