{"id":31522,"date":"2012-11-27T09:21:54","date_gmt":"2012-11-27T16:21:54","guid":{"rendered":"http:\/\/hill-kleerup.org\/blog\/2012\/11\/27\/the-costco-difference.html"},"modified":"2012-11-27T09:21:54","modified_gmt":"2012-11-27T16:21:54","slug":"the-costco-difference","status":"publish","type":"post","link":"https:\/\/hill-kleerup.org\/blog\/2012\/11\/27\/the-costco-difference.html","title":{"rendered":"The Costco Difference"},"content":{"rendered":"

Paying higher wages and better benefits to employees?\u00a0Even with the stock analysts telling them they're being too generous? \u00a0Inconceivable!<\/p>\n

'But not everyone is happy with Costco's business strategy. Some Wall Street analysts assert that Mr. Sinegal is overly generous not only to Costco's customers but to its workers as well. Costco's average pay, for example, is $17 an hour, 42 percent higher than its fiercest rival, Sam's Club. And Costco's health plan makes those at many other retailers look Scroogish. One analyst, Bill Dreher of Deutsche Bank, complained last year that at Costco "it's better to be an employee or a customer than a shareholder."<\/i><\/p>\n

'Mr. Sinegal begs to differ. He rejects Wall Street's assumption that to succeed in discount retailing, companies must pay poorly and skimp on benefits, or must ratchet up prices to meet Wall Street's profit demands. Good wages and benefits are why Costco has extremely low rates of turnover and theft by employees, he said. And Costco's customers, who are more affluent than other warehouse store shoppers, stay loyal because they like that low prices do not come at the workers' expense. "This is not altruistic," he said. "This is good business."'<\/i><\/p>\n

(h\/t +<\/span>Wendy Cockcroft<\/a><\/span>)<\/p>\n

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Embedded Link<\/strong><\/p>\n

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\t\t\t\t\t\t\t\t\t\t\t\tHow Costco Became the Anti-Wal-Mart – New York Times<\/a>
\n\t\t\t\t\t\t\t\t\t\t\t\tCostco Wholesale, the nation’s fifth-largest retailer, pays its workers 42 percent more on average than its closest rival, Sam’s Club.\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n

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Paying higher wages and better benefits to employees?\u00a0Even with the stock analysts telling them they're being too generous? \u00a0Inconceivable! 'But not everyone is happy with Costco's business strategy. Some Wall Street analysts assert that Mr. Sinegal is overly generous not only to Costco's customers but to its workers as well. Costco's average pay, for example, … Continue reading “The Costco Difference”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[106],"tags":[],"class_list":["post-31522","post","type-post","status-publish","format-standard","hentry","category-plusposts"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":6575,"url":"https:\/\/hill-kleerup.org\/blog\/2004\/08\/17\/yeah_but_do_you.html","url_meta":{"origin":31522,"position":0},"title":"Yeah, but do you need them in bulk?","author":"***Dave","date":"Tue 17-Aug-04 7:11am","format":false,"excerpt":"Costco test markets caskets. The folks in the Death Biz aren't amused. Those involved in arranging funerals were not as enthusiastic about discount retailers moving in on their business. \"If...","rel":"","context":"In "Big Business"","block_context":{"text":"Big Business","link":"https:\/\/hill-kleerup.org\/blog\/category\/big-business"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":129656,"url":"https:\/\/hill-kleerup.org\/blog\/2016\/02\/06\/costco-delays-the-switch-from-amex-to-visa-for-a-few-months.html","url_meta":{"origin":31522,"position":1},"title":"Costco delays the switch from Amex to Visa for a few months","author":"***Dave","date":"Sat 6-Feb-16 6:58pm","format":false,"excerpt":"These sorts of transitions are tricky, and I'm just as happy they aren't having to rush it.I sort of wish they were going with MasterCard instead, since my main card is already a Visa and I prefer to have a diverse ecosystem in my wallet (so to speak). On the\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":133109,"url":"https:\/\/hill-kleerup.org\/blog\/2017\/03\/20\/a-ballsy-law-suit.html","url_meta":{"origin":31522,"position":2},"title":"A Ballsy Law Suit","author":"***Dave","date":"Mon 20-Mar-17 2:59pm","format":false,"excerpt":"Costco has preemptively asked a federal court to rule whether Titleist's accusations (which they haven't file suit on ... yet) of copyright infringement and false advertising hold any water.The irony here is that, if they are of a reasonable quality, 99.99% of all golfers won't be able to tell the\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13164,"url":"https:\/\/hill-kleerup.org\/blog\/2008\/07\/06\/colorado_a_bit_less_blue.html","url_meta":{"origin":31522,"position":3},"title":"Colorado a bit less blue as of this weekend","author":"***Dave","date":"Sun 6-Jul-08 8:59pm","format":false,"excerpt":"I missed it when it passed the legislature in April, but Colorado, as of ... today ... allows purchase of wine and beer on Sundays. 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