Ethics in Costco
“Our business is to give the customer the best value we can. We’re going to be a company that is on first name basis with members. Strategic gives customers the best value, at the best price.”
Costco’s first location in Seattle opened in 1976 under the name “Price Club.” Costco was officially founded in 1983 by two veterans of retail, Jeffrey Brotman and James Sinegal, but the first seed of Costco was sown three decades earlier by a man named Sol Price. In 1953 Price Costco Inc became extreme in the warehouse retailing industry, challenging Sam’s Club (owned by Wal-Mart).
The member’s only club was created by Sol Price. In 1954 Price started Fedmart, which was a discount department store designed for government employees who paid a member fee of two dollars per family. The store’s first year was successful; however Price sold Fedmart Corp after losing company membership in 1976. Small business owners had few options to buy products, therefore Price and his son Robert formed the Price Company and opened the first Price Club in San Diego which originally served only small businesses (Company’s website). According to Glenn Llopis at Forbes.com price Club was born as the world’s first wholesale warehouse club. With Price Club, Sol Price single-handedly grew a new industry and with it, a perpetual harvest of good fortune.
Price Club’s concept was to offer a small selection of goods and sell them in bulk to keep prices low. To maintain low prices, overhead was kept to a minimum. Products were stocked on the sales floor, along with no advertising, besides the announcement of new store openings. Restricted membership was limited because fees would offset overhead costs. It also reduced bad checks, stealing, and allowed members to be financially secure. The store refused credit card payments to avoid fees, as of now Costco worldwide only accepts American Express credit cards under their company.
As business boomed annual sales were high and word of mouth from their
Costco’s first location in Seattle opened in 1976 under the name “Price Club.” Costco was officially founded in 1983 by two veterans of retail, Jeffrey Brotman and James Sinegal, but the first seed of Costco was sown three decades earlier by a man named Sol Price. In 1953 Price Costco Inc became extreme in the warehouse retailing industry, challenging Sam’s Club (owned by Wal-Mart).
The member’s only club was created by Sol Price. In 1954 Price started Fedmart, which was a discount department store designed for government employees who paid a member fee of two dollars per family. The store’s first year was successful; however Price sold Fedmart Corp after losing company membership in 1976. Small business owners had few options to buy products, therefore Price and his son Robert formed the Price Company and opened the first Price Club in San Diego which originally served only small businesses (Company’s website). According to Glenn Llopis at Forbes.com price Club was born as the world’s first wholesale warehouse club. With Price Club, Sol Price single-handedly grew a new industry and with it, a perpetual harvest of good fortune.
Price Club’s concept was to offer a small selection of goods and sell them in bulk to keep prices low. To maintain low prices, overhead was kept to a minimum. Products were stocked on the sales floor, along with no advertising, besides the announcement of new store openings. Restricted membership was limited because fees would offset overhead costs. It also reduced bad checks, stealing, and allowed members to be financially secure. The store refused credit card payments to avoid fees, as of now Costco worldwide only accepts American Express credit cards under their company.
As business boomed annual sales were high and word of mouth from their