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Awesome company, I just hope it's sustainable. Good pay + Low prices seems like a difficult combination
by hayksaakian 13y ago
Awesome company, I just hope it's sustainable.
Good pay + Low prices seems like a difficult combination
- mikeash 13y agoThey've been around for almost 40 years and are highly profitable. You don't have to "hope" it's sustainable, as it clearly is.
- hayksaakian 13y agoI was also thinking about them in terms of tech, relative to the marketplace. If Amazon decides to open "Costozon" will Costco be able to compete?
- mikeash 13y agoIf you mean a giant retail store, I think Costco will do fine. They have a lot more experience in that area, and they've done fine so far against existing cost-cutting retailers like Wal-Mart.
- lawnchair_larry 13y agoYou say that like it hasn't been around for 30 years...
- Centigonal 13y agoThey pay their employees well and actually limit profit margins so that they're sustainable. I watched a documentary[1] a few months ago wherein it was outlined that the company's former CEO witnessed the rise and fall of several other big-warehouse wholesalers. He noticed that what kept happening was that companies would start with lean margins, capture lots of customers, raise the margins, and collapse as soon as another wholesaler with leaner margins appeared. To avoid that fate, he apparently put a hard cap on Costco's profit margins. That said, now that Costco's so big, they could theoretically raise their prices and still muscle out competitors. Let's hope that doesn't happen. [1] https://www.youtube.com/watch?v=1f6gRxwHGII https://www.youtube.com/watch?v=1f6gRxwHGII