Sam's Club

The advanced pricing technique that would be most appropriate for a Sam’s Club or Costco would be second degree price discrimination. Second degree price discrimination is defined by Thomas and Maurice (2010, p. 583) as, “When a firm offers lower prices for larger quantities and lets buyers self-select the price they pay by choosing how much to buy.” Therefore, when the same consumer buys more than one unit of a good or service at a time the marginal value placed on consuming additional units…

Costco Wholesale Corporation is a membership-only warehouse club from the USA. The first price club warehouse was opened in 1976, thus the new concept of the ‘retail warehouse club’ was established. And then Costco opened its first warehouse in 1983 in Seattle. As to the consumer goods industry, there exist numbers of competitors, such as Sam’s Club, Walmart and Target. Up till now, it has already had almost 85 million members. The attraction of Costco is the offer of a great variety of goods.…

warehouse club where consumers and businesses can subscribe to Costco’s Membership Plan. Members of their Warehouse Club can purchase goods in bulk. With the growth of the company, Costco also added services that could be purchased at a reduced rate. Costco now offers a travel agency, optical services, a food court, and Home improvement installation. Costco offers name brand products but also has a signature brand called Kirkland Signature. Costco is a Fortune 500 company second only to…

Costco Wholesale Corporation started in September 15, 1983 by James Sinegal and Jeffrey Brotman. This wholesale company climbed its way to the top as one of the largest retailer in the world. Costco manufacturers’ food and beverage focusing more on selling a bulk of food featuring its quality. This everyday shopping revolutionized the wholesale industry. Throughout the years, Costco went beyond its way to sell products that are not in the food and beverage department. They started selling…

In the highly competitive U.S. Retail Industry, Costco strategy of driving more customer traffic at its stores through attractive product offerings at discounted prices has helped it gain a better market share and grow its sales base. In fact, these sales growth initiatives have been gaining popularity among low-to-mid income groups. And the success of the company's sales growth plan is very evident from its healthy sales growth. Then as it continues its growth, Costco will need to identify…

otherwise not available in other retail outlets. This allows the customer to buy products in bulk, have access to rear luxury goods and much better discounts. Low prices allow for more offensive competition, and low overhead for less money spent per each club. Each register has 2 employees one ringing up the product the other boxing the product in the boxes to cut on the time spent at the register (perhaps the most annoying part of shopping in general). Although Costco is not valued as a high…

Personal Evaluation In my opinion, the Costco Wholesale Corporation has placed high importance on both customers and employees. Furthermore, they not only have warehouse chains all over the US, but they also have chains in multiple countries all over the world. If I were to be hired by Costco Wholesale, I would be able to travel outside my hometown as well as receive multiple employee benefits. Furthermore, Costco places a great deal of value in corporate social responsibility and environmental…

membership warehouse club chains in the United States. It is also operating in more than 672 locations worldwide. Its mission anchors on the provision of good and services of high quality to the market at an affordable, friendly and low prices possible (Costco Wholesale Corporation, 2015). To meet the pledge, it has to strategies in its marketing objective that articulate to record high sales per warehouse, be the lowest cost retail operator, and increase the number of the clubs across the…

Opportunity Increasing Online Sales Expending Store Locations Threat High Level of Competition Foreign Exchange Rate Fluctuations Increasing Labor and Healthcare Costs Strength Permanently Capped Low Margin Prices Costco’s business philosophy is to maintain lower prices, as well as offer the consumers high quality products. Costco’s prices are very competitive, maintaining a maximum markup price of 16% for branded and private label products, while average markup price for the industry is…

wesco logoThe WESCO Gas Stations History In the year 1952, WESCO started out its name in Michigan by Mr. Bud Westgate as its founder. Mr. Westgate started the business by building up a small cement block building having also bought 3 gas pumps which were already used for the cost of $75. With this small business, it has expanded into a huge company having 51 convenience stores operated in all areas of Michigan. The expanded company, WESCO, was owned by the Westgate brothers, Mr. Bud Westgate’s…