I wasn't expecting this!
“We sell quality stuff at the best possible price. If you treat consumers with respect and treat employees with respect, good things are going to happen to you” – CEO of Costco
According to Glassdoor Costco’s cashiers get paid $15.80/hour and supervisors get paid $22.94/hour. This compares to Walmart’s cashiers at $8.89/hour and department managers at $12.00/hour. Target’s cashiers receive $8.66/hour and team leaders receive $15.36/hour. Moreover Bloomberg reports 88% of Costco’s employees are on company sponsored health care plans, which is much higher than other retailers. Costco’s higher pay and benefits keep turnover low and increases the quality of service.
Despite paying more for their people, almost double Costco is killing the competition? How is it possible? I have never been in a Costco store but i will try to find out how is it possible that in a commodity business like Supermarkets (Everybody sells the same stuff) the low cost producer doesn't win! And Wal-mart is not winning!
I don't buy the quality of service argument because when i go to a supermarket i don't need a lot of service. I don't care if the cashier ask me if i have their credit card with a smile or not. There is something more to this ......................
Share story
Francisco, Costco is little different from a regular supermarket. They sell items in bulk or big packages. They consider themselves like a wholesale distributor that sells to other businesses in large quantities. They also sell to the a regular person who wants to buy items for a family because the price is cheaper when buying in bulk packages. For example, you cannot go in and buy a steak for one person. The package of meat is big and would feed a family and more. It is an interesting business model that works for the U.S. In Europe, many people would find it strange and wasteful to buy so much. Costco is probably a factor in Americas obesity problem.
ReplyDeleteD Phuong
Tks for the info, I have noticed that in USA it's possible to buy huge quantities of everything. Know i know that COSTCO is the king size of them all.
ReplyDelete