Re: Costco in Hawai`i
Some good points have been made here about Costco's hardball stance on doing business with their suppliers.
The mention of them having zero brand loyalty is a tough one to swallow. There must be some point where customer demand for specific products (as reflected here) would have more leverage than the bottom line: price. Of course, Costco can pass any price increases on to the customers, but they're also driven at keeping their public reputation as the lowest price in town for the highest quality product, which is the core strategy of their business model.
It's a tough business. I'm sure manufacturer reps must cringe at just the thought of walking into Costco's merchandising office. Like going to war.
I've got an aunt in Alaska who used to package and sell smoked salmon at the Anchorage Costco. She too got ousted by a larger supplier who offered them a lower price.
Some good points have been made here about Costco's hardball stance on doing business with their suppliers.
The mention of them having zero brand loyalty is a tough one to swallow. There must be some point where customer demand for specific products (as reflected here) would have more leverage than the bottom line: price. Of course, Costco can pass any price increases on to the customers, but they're also driven at keeping their public reputation as the lowest price in town for the highest quality product, which is the core strategy of their business model.
It's a tough business. I'm sure manufacturer reps must cringe at just the thought of walking into Costco's merchandising office. Like going to war.
I've got an aunt in Alaska who used to package and sell smoked salmon at the Anchorage Costco. She too got ousted by a larger supplier who offered them a lower price.
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