Re:Sears has another chance to avoid closing down
by OldHand2018 on Tuesday January 08, 2019 @12:21PM
(#18857305)
In Chicago a Costco membership is worth it just for the gas. It's usually at least 50 cents per gallon less expensive than nearby stations. I have no idea how they do that.
Also, for new parents: you can easily save the cost of the membership on diapers and wipes for the year or so your child wears them.
They always have a car parked in front or by the customer service center to advertise their auto purchase program. It has almost always been a Lexus, but for the past few months the one near me is a Maserati. I think this may be their signal on who their ideal customer is. Yet my parents used it to buy a Subaru and it was a good deal.
Re:Sears has another chance to avoid closing down
by jboy55 on Tuesday January 08, 2019 @01:32PM
(#18858052)
Costco loves the concept of price anchoring. That's why the diamond rings and tvs are right near the front, and their liquor isle has $1,000 bottles.
The concept is that when you decide against buying the $1,000 thing, the $50 thing seems a good comprise. If all you had were $10 things, the $50 thing would seem to be 'too much'.
Re:Sears has another chance to avoid closing down
by xnyan on Tuesday January 08, 2019 @01:01PM
(#18857726)
Costco makes ~75% of their profit from memberships, gas is like their iconic $5 rotisserie chicken - sell it at cost or a small loss as a incentive to buy and maintain membership. Gas prices are posted outside so it's a particularity public ad for costco membership and as such they have a strong incentive to push the price as low as feasible.
Re:Sears has another chance to avoid closing down
by dragonwriter on Tuesday January 08, 2019 @01:06PM
(#18857771)
> A couple of factors act as a "filter" that makes Costco less worthwhile for lower income shoppers:
You missed a big one in many areas: buying in bulk requires facilities for storing inventory.
Re:Sears has another chance to avoid closing down
by dllthomas on Tuesday January 08, 2019 @02:09PM
(#18858498)
With sufficiently stable social circles (also not available to everyone, but at least not an identical requirement) you could replace storage with distribution.
Re:Sears has another chance to avoid closing down
by dragonwriter on Tuesday January 08, 2019 @02:19PM
(#18858624)
Sure, but the poor are less likely to have stable social circles for shared purchases and distribution as well as less able to afford storage.
Re:Sears has another chance to avoid closing down
by dllthomas on Tuesday January 08, 2019 @03:53PM
(#18859571)
Certainly. I'd meant to imply as much.
A couple of factors act as a "filter" that makes Costco less worthwhile for lower income shoppers:
- Buying in bulk requires a bunch of cash up front, which not everyone has.
- Buying in bulk normally works best for families, and individuals with families have higher average incomes than those that don't.
- Costco stocks almost exclusively mid- to high-quality food and products. Shoppers may be able to have a lower grocery bill by buying lower-quality store-brand products elsewhere.
There are obviously individual exceptions, but these factors drive up the average income of a Costco shopper.