Costco a good start in the retail market?


#1

I live in my RV 6 months out of the year. Makes it difficult to get my fill of 2.0 (3-4 bottles/day) having to change shipping locations. If Rosa Labs wanted to get their feet wet in the retail market, they might want to look into Costco. It could be sold in the 12 pack cartons (no singles).

Costco has 481 stores in 43 US states and 89 in Canada.

Thoughts ??


#3

It’s a nice thought but Costco requires a membership which to me equals HASSLE.


#4

Yeah, hassle and it doesn’t make sense, in a way:

Buy a membership for a grocery store so you can buy a product that gets you away from having to buy groceries.

:confused:


#5

Maybe just someplace like Best Buy.


#6

I always thought that it would first appear in health food stores and/or places like GNC before anywhere else. Or 2.0 in vending machines. Or maybe in the back of some random dude’s van on the side of the road, like how I get my fresh lobster.


#7

Good point. GNC and health stores seems more logical.


#9

I just don’t think that delivery in faster than four days is important. I’ve been a member of Amazon Prime for years and it’s obvious to me that the customer is simply being ripped off to pay for two-day delivery.


#11

I think Costco would be a great place to sell it. On the other hand, if they were to get into Walmart, they’d likely move a lot of product. Possibly more than they’d be able to keep up with. The same may be true of Costco and other stores. While it might increase volume, it would be a tough transition. Much of the food in supermarkets is from subsidiaries of just a few mega corporations who are really good at handling complex logistics. Give them time to grow and they’ll get there eventually.


#12

Maybe not to you, but I love 2 day shipping. Would pay additional for a 1 day option.

Just because your fiscal priorities differ than mine does not mean I am being swindled.


#13

You can pay additional for a one-day option. The point is, you are not getting free two-day shipping. You are paying extra for two-day shipping.


#15

How is having a membership payment due once per year a “hassle”? Which I take to mean is too much work for you to deal with and not that you don’t want to spend the money.


#16

Costco is WAAAY more than just a grocery store. So much more that I’m not even going to take the time to try and list everything it is besides just a grocery store for you. It’s not even funny how much more Costco is than just a grocery store. That was also my ignorant way of thinking before I wisely joined 9 years ago. And, I doubt that remittal is looking to get a membership so he/she can go buy Soylent or would suggest that for anyone else. He/she already has a membership and wants to be able to buy Soylent there, because he knows it would have to be sold at a good price to get on the shelf.


#17

I’d buy it at Costco if it were sold there. That said, I tend to think of places like Costco as only selling products they expect to be high volume.


#18

Costco fanboys. haha awesome

I’m familiar with Costco - we have one about 3 hours from here.


#20

The point you made was that the customer was being ripped off. Your second point about not getting free two-day shipping is also circumspect.

It depends on multiple factors, such as how much a customer values the additional benefits like video. How much the customer pays for the service. How much the customer would have paid for two day shipping.

In my case, I almost never use any of the benefits outside of 2 day shipping, so 100% of my annual fee goes toward shipping. My last bill for Prime was $49. In 2015 I placed a total of 63 orders. In 2016 I currently stand at 17 orders, so I may beat 2015’s numbers. Either way, I paid approximately $0.73 per order in 2015 to received 2 day shipping.

So no, in my case I do not get free shipping. But if I could get 2 day shipping for $0.73 from every vendor I use I’d be thrilled. So the service is definitely of value for me.

One last point in my example however. Once the new Wildebeest, Hamster, and Tortoise show drops exclusively on Amazon Prime, I will consider that a massive benefit. I would be willing to pay $20 for that show alone. That drops the shipping portion of my Prime subscription to $29. That drops my per order 2 day shipping cost to $0.46.

So. I guess my rambling could be boiled down to, a blanket statement on the value of services is not accurate.


#21

Yah I know this place pretty good, I went to law school here.


#22

You are naturally entitled to spend your money however you want, but your analysis is wrong. You apparently haven’t noticed that Amazon charges a few extra dollars for most products, which pays Amazon for the two-day shipping. The 73 cents you calculated pays them even more for the quick shipping. Amazon apparently forces its competitors who sell on Amazon to charge $4.00 extra for shipping so it is not disadvantaged much by their cheaper prices for the same items. Amazon has cleverly rigged things so it can’t lose.


#23

And you are wrong. Again. (Where’s the headshake icon?)

Do you think I only order from Amazon? I price shop. Within Amazon, and with other vendors outside Amazon. I don’t buy products from Amazon just because it’s Amazon and just because the product is Prime eligible. Again you make assumptions based on your own experiences. Now, granted, on occasion I will purchase something from Amazon even if I do find is slightly cheaper elsewhere (shipping prices included). This is due to the strength of customer support I’ve experienced in the past. That’s an additional value add beyond price,

If price were all that mattered, I’d prefer 1.5 over 2.0.

And can you link me the policy text where Amazon requires vendors to charge $4 extra for shipping? I’ve often found duplicate items with free shipping from non-Amazon vendors that are cheaper than “fulfilled by Amazon” items, so I have to call bullshit on this one.


#24

I can’t quote proprietary information, but let’s take an example. I chose a book at random, Rick Steves’ Italian Phrase Book & Dictionary. Why are there 17 third-party sellers of this book who charge exactly $3.99 for shipping? Coincidence? You’d think that someone could get it done for $3.97, but no. Interestingly, the cheapest offer by a third-party seller turns out to almost exactly match the Amazon offer, if you add the price of shipping. And this is a typical situation.

I’m sure there are general explanations, but the general environment is set up by Amazon to favor its interests, of course. Amazon is for itself first and for the consumer second, like any other merchant.

Now, to prevent hijacking this thread further, I’m not continuing further discussion.


#25

Yeah, hassle and it doesn’t make sense, in a way: Buy a membership for a grocery store so you can buy a product that gets you away from having to buy groceries.

Because… membership is just $5/mo.

Because… even if you don’t buy anything else, a very thin idea, I suspect it would be the lowest-cost at-retail Soylent you could find.

For those who don’t already know, the standard Costco markup is 11%, where most retail pricing is cost plus 50%. Most Costco stores sell top-tier gasoline now. In my burbclave, local Costcos beat the next (subsidized) outlet down the street - otherwise best price for many miles - by $0.10 to $0.15/gallon and stand-alone stations by $0.20 to $0.30/gallon most days.