quote:

Originally posted by corsair:
The monthly promotion periods are planned long in advance. The mark-downs are provided by Costco's vendors, Costco is retaining the same margin as if they purchased at regular wholesale. Costco continues to grow their purchases, vendor shrinks their wholesale cost but, with Costco's captive audience they increase their overall market share; good partners get larger incentives.

This is the correct answer. The coupon books are basically driven by the vendor. The vendor gives the special pricing to be included in the book.

Also, Costco's entire business model is founded on analytics. They can predict with near certainty how much of each product will stay on the shelves and for how long, and they only carry product that they know they can sell before they even have to pay the vendor for it.

Lastly, Costco's membership already has incentive to come into the store on a regular, periodic basis because everyone pays a membership. The members have self selected themselves as people who would use the store often enough to justify the annual membership fee.

all I know is that we joined 30 years ago in Oxnard and we could find 9 or ten things to go get , from the mailers( when Price owned the company)

now when we get the mailers, we are lucky to find 2 items worth traveling the 16 miles for.

they know for a fact who will impulse buy ,
play on that.

I'd like to quit the Sam's club , but Costco won't do their part in helping me decide