Mhugh220
Former ETL-Logistics
- Joined
- Nov 8, 2012
- Messages
- 829
Here is a good documentary on Costco's business model and why they are successful: http://www.cnbc.com/id/46603589#.
I've read several threads about TM pay and comparing themselves to Costco employees. This documentary sheds some light on Costco's business model and things they do differently to save money and generate revenue.
Thoughts-
1. 64 Million members x $50 annual membership fee = $3,200,000,000 before ever selling a product
2. The "Costco Effect," the routine tendency of its members to succumb to the store’s discount-chic allure and spend more than they expect, often buying more than they need
3. Total Sales - Costco ($105 Billion 2013) vs Target ($72 Billion 2013) - $33 Billion difference
4. Costco has 600 stores vs Targets 1,700+ - Less overhead for Costco
5. Costco is a warehouse where customers can shop. Target is a showroom where TMs must maintain "Brand".
I'm not saying TMs (this includes all positions from TM to STL) don't deserve more for what they do. This is just a comparison of how Costco operates. Costco seems to have a good leadership team. Even if Target increased sales I still don't see their executives sharing that with the stores.
All retail stores have the threat of bankruptcy. After watching this documentary you see how Costco tries hard to avoid similar fates (i.e. Sears).
I've read several threads about TM pay and comparing themselves to Costco employees. This documentary sheds some light on Costco's business model and things they do differently to save money and generate revenue.
Thoughts-
1. 64 Million members x $50 annual membership fee = $3,200,000,000 before ever selling a product
2. The "Costco Effect," the routine tendency of its members to succumb to the store’s discount-chic allure and spend more than they expect, often buying more than they need
3. Total Sales - Costco ($105 Billion 2013) vs Target ($72 Billion 2013) - $33 Billion difference
4. Costco has 600 stores vs Targets 1,700+ - Less overhead for Costco
5. Costco is a warehouse where customers can shop. Target is a showroom where TMs must maintain "Brand".
I'm not saying TMs (this includes all positions from TM to STL) don't deserve more for what they do. This is just a comparison of how Costco operates. Costco seems to have a good leadership team. Even if Target increased sales I still don't see their executives sharing that with the stores.
All retail stores have the threat of bankruptcy. After watching this documentary you see how Costco tries hard to avoid similar fates (i.e. Sears).