How Costco Became A Massive "Members Only" Retailer

my mom has a friend who had bought a couch at cosco circa 2009. in 2018, when they were getting ready to move, she realized she couldn’t take it apart and it being nearly a decade old, the manual was nowhere to be found. she went down to costco and asked them how she was supposed to take it apart. they explained to her that she shouldn’t worry and they’ll send someone. a week later, a moving truck shows up at their door. costco workers come in, take apart the couch and take it out. she asks where they’re going and they reply that they’ve been told to take this one and replace it at their new house. the thing was absolutely trashed, worn and torn with stains, the whole shebang. no way they could resell or salvage it. no warranty, nothing AND THEY JUST GAVE HER A NEW $2500 COUCH.

costco has paid every employee "covid pay" for months adding on 2-4$ more per hour. Thats an extrodinary amount of money and a classy thing to do to show employees their hard work and commitment is everything

A mere 3 visits to Costco to fill petrol in my car recovers my annual membership fee. All other savings thereafter are a mere bonus!!

8:15 Unmentioned is that Costco's turnover rate, around 7% vs 20% for similar retailers is a huge savings to their bottom line. It costs up to 20% of an employee's annual salary to hire and train a replacement. Helping achieve this is a perk that certainly reduces profits, providing health care coverage to all employees.

Knowing that Costco treats their employees right makes me feel good about shopping at Costco's. You generally don't feel like they're out to screw you over.

My cousin started working at Costco in the early 90s as a way to pay his way through college. He thought it was a temporary gig for him. He's still working there today.

Fun fact: You don’t need a membership to purchase alcohol or wine, to eat at the food court, or to be seen by the independent optometrists. You can also tour the warehouse before purchasing a membership if you’re unsure about committing.

My family has had the executive membership for around 15+ years and it’s been worth it this entire time. We’re a big family so we spend a ton of money there. It has always been a great experience.

Been working at Costco for the last six years. Honestly, it’s a decent place to work. If you can deal with certain, painful, customers then it’s a good place to work.
The benefits are also really nice.

I like the fact that they pay their employees well. That alone translates in good customer service (I feel good shopping there, seeing genuine smile or at least, not seeing defeat like at Walmart).

During the height of Covid, my Costco had line ups of members waiting to get in that wrapped around the warehouse. Costco limited the number of people in the store for social distancing, but the members never stopped coming and the sales and stock price prove it.

When I joined Costco in the early 80s, there was only one store, in Seattle. You had to have business license to join. There were times, during that period, I was the only person in the store. I told all my friends, the place would never make it...😂

The comments have convinced me to get a membership even though I’m single. 3 lb boxes of cereal, here I come.

We bailed on Sam’s a few years ago and joined Costco and never looked back. We’ve found the merchandise to be of generally higher quality, good value for the price, and customer service is excellent. The fact that their employees are treated well is important to us as well.

Treating the employees well shows because their customer service is always exemplary. Also, they're products are generally of high quality- lots of organic items and the return policy is easy and courteous. It's my favorite store!

" Members are fiercely loyal" ouch so true

My Dad and I were members #99 and #100 in Seattle when Costco opened, it was funny because back then everyone in line was giving each other nods and smiles like "Ain't we smart".

How do I love Costco? Let me count the ways: 1-The optical department alone saves me way more than my annual membership fee. 2-I can shop while I get my tires rotated. 3-I can fill up my gas tank when I'm done shopping. 4-I like to buy local. 5-They treat the employees well, unlike the jerk who owns Amazon. 6-Easy returns if you don't like something. 7-Great prices. My husband eats a ton of peanut butter, and I can get 56-oz of ORGANIC peanut butter for 10 bucks! Can't match that anywhere else. 8-...I could keep going, but you get the idea.

Its funny how don't even talk about gasoline. In my experience, on average they are 20 cents lower per gallon. For a 15 gallon tank for most cars, that's $3 in savings per visit. That makes up my $60 membership fee per year right there. Everything else is gravy.

One of the smartest things there is to make the costumers happy taking care of the employees. Mmmm this is like Ritz Carlton Motto. I love that.

$60 per year is not bad at all.
It pays for itself within 30 minutes of me entering the store.

I don't mind paying a bit more to shop. Treating and paying workers right is important.

Honestly, Amazon can never beat Costco… it’s just things you want but in bulk. I have an executive membership card and the reward ever year is over $60 so it basically half of the membership lol

We just LOVE Costco and have been members since price club opened. Executive membership always free every year since we spend as much as we can at their stores. Always a fun experience shopping there.

The gas prices alone is worth a membership imo.

Lol trying to imply Costco is in trouble. They were the most organized retailer and safest place to grocery shop during lockdown. Many stores were maxed out for months.

I've watched many videos about Costco over the years. This one is the best by far! I've been a member since 1985 (the Price Club back then), and this video gives great insight into the history of the company in addition to explaining how and why it grew over the years to a membership only store whose members are very loyal (me included!). Yes, I shop at BJs and Sam's Club for various items that either Costco doesn't sell at the time I need them (like a mattress in December), or the store is more convenient (my mother lives in a town with a BJs but the Costco is at least a 1/2 hour away.) With all that said Costco is my favorite. Our shopping there is close to 70% Kirkland Signature. The brand never disappoints!

I used to be a bread stocker at Costco, and yes I can confirm it is definitely one of the best retailers I’ve worked at, with Walmart being the absolute worst

Bruh I got a costco card when I was 20. Being a student and being able to bulk buy Ramen noodles and cheap food meant I spent less time shopping and more time getting my degree

Took a family trip to Mexico last year and one of the most memorable experiences from that vacation was to visit a Costco in Cabo. I’ve also had friends who’ve traveled to Taiwan and went to Costco there

I'm in Canada and while I cannot justify shopping at Costco because I live alone and I hate buying huge quantities just for myself, but it is worth it when you have a family and it's a great company.

I love Costco! I was able to get an eye exam and new contact lenses/glasses when I had no health insurance! Not to mention all the great values and deals they have! Plus they have the BEST bakery! I can only eat pumpkin pie from Costco aha

Buying in bulk was perfect for us when we joined Price Club in the 80's. We lived in a rural area and traveled 500 miles round trip once a month or two to get a truckload of groceries. There are other options much closer today like Sams but we still prefer the longer trip to Costco for better quality and items we cant get elsewhere.

Being a single dude, Costco has become an intrinsic part of my life. I buy almost everything there: food, protein powder, appliances. Their executive membership paired with their credit card gives me back more than my $120 membership fee.

I LOVE COSTCO. They treat workers well, which is so rare these days. And the better treatment of workers is definitely reflected on the customer's experience. Never ever ever had a bad experience shopping at Costco :D
Also i love love love the Kirkland brand. I can always buy anything Kirkland and I know I'm getting the best value for the quality of the product. Their toilet paper is amazing too. And their food courts. I can go on and on

I love Costco. Going there is a cultural experience. The experience can never be repeated online.

If Costco doesn’t have it, you don’t need it.

The hotdogs for 1.50$ really hits the spot :)

Yes, we are a Costco family. I always love going there if only to eat the free samples! But we have gotten a few good deals on big ticket items from Costco such as an HDTV back in 2009 and more recently, a sectional sofa for less than $1000. But we mostly buy food like organic produce and even those croissants from the bakery section.

Lots of valid points made about Costco...everything from going to its gas station, then its warehouse, then its food court on the way out. Can't beat its $1.50 hot dog & soda combo, & $1.99 pizza slice. And the moment the Chicken Bake is back on the menu post-pandemic, I'm getting one right away.

can count on Costco to not raise prices of soap when a virus hits

Here is a story that came to my mind after watching this video..
"Financial education is the key to success during time of crisis. Those that understands how money works will survive no matter which way the market is moving".

Costco system works so well that now that I live in Portugal and I found out is one in Seville, Spain (2 hours away), guess what, I already went to the store and odd part, once you inside the store you don't know in which country you are, everything inside resembles the US stores even the bathroom locations are the same. Costco's experience almost resembles an addiction. My two cents.

Why I keep my Costco membership?
-Maan, those paper towels... Can't switch back to any other brand.

The main advantage Costco has over other retailers and even e-commerce: their entire existence revolves around making you happy so you renew your membership. They have 90% renewal rates compared to measly 50-60% for other subscription services. They only focus on making you happy, and to do that, they treat their employees well (Costco employees are often twice as productive than Walmart/Target employees). Whereas Amazon ruthlessly sacrifices their employees to lower operating costs (they often lose money on shipping costs for Prime members), Costco gets their upfront payment and use the money you spend on products to keep you coming back, whether it be paying employees or just to break even on their operating costs.

Costco isn’t my primary grocery store. But it’s fabulous for a few useful things and IMO worth being a member if there’s a store or two nearby. Something about Costco which does make it appealing for young people is that you can get 2 memberships per household (not family). So if you live with another single person, you can have one person payback half the membership fee so you both get a Costco card at the price of one membership.
They also have the best return policy thanks to their database. My dad traveled all the time for work and had a Costco suitcase with a 10 year warranty. It failed on year 10 (which is really good because his earlier suitcases typically only were good for about a year with all the traveling). Anyway, they were able to find the one he purchased 10 years earlier on their database and replace it for no charge. No receipt necessary.
A couple years ago they even refunded people’s cut Christmas trees in January before eventually deciding that that was too generous and easy for people just trying to lie for a free tree. 😅

Loving these documentaries, have em running in the background. Been going through them all

Keep those hot dogs coming and I’ll keep shopping.

If Kirkland was it's own company it would have $50 billion in sales... damn

I will be highly loyal to Costco because: 1) they treat their employees well, 2) they offer excellent value to customers, and 3) they intentionally and defiantly keep their prices low.

Kirkland is actually a very popular brand in China as many grey market exporters sell in online and in stores in HK and China. I saw 2 stores in HK that basically just resold Kirkland brand items. I met folks in 3rd tier cities who asked why Costco hadn’t open stores in China like other western brands 5-6 years ago. It wasn’t a surprise to see the SH store mobbed.

I enjoy going to Costco for the experience and the quality of choice, plus I like supporting companies that don't subscribe to the idiotic notion that the only way to make money is to shaft the employee as much as possible

Shopping at Costco is an experience! I enjoy every time I shop

Not surprised that there are lines and lines at Costco. New Zealand just opened their first one and I know people driving hours to go there!

Costco is one of the last memberships I would cut

That China traffic jam thing happened here in India when IKEA opened their first outlet in India (in Hyderabad to be specific) two years ago. People flocked to IKEA like crazy. They were getting more than 40k people in the stores on a daily basis for the first couple of months.

This is the longest Costco ad I’ve ever seen

I just keep thinking, “Welcome to Costco. I love you.”

I have been satisfied with Costco in the way they treat their employees and customers. Whenever I have been on a road trip I look for all of the Costco's along the way to buy my fuel and get a bite to eat or even shop a bit. Many of the Costco's also have Teamsters Union Representation whereas Walmart will even close down a store to keep the Union's out. I was a member of the Teamsters when I lived in Washington and they were good for both the employees and the business because they had lower health care cost than the business could purchase on their own. I have been a member of Costco since 1988 and shopped at the first store in Kirkland Washington. I just wish they would put a store in Porterville CA. I have to travel to Visalia to get to the nearest Costco but it pays for the trip because Costco's fuel is 50 cents cheaper per gallon and I don't have to pay a surcharge to use my Costco VISA. I have always appreciated the quality and the lower costs of the products.

I see my $60 membership fee as as an Annual Pass to the food court 🤤

Well, I guess I'll switch from Sam's to Costco tomorrow... this video convinced me. Customer service at Sam's is horrible. Huge attitudes.

I love you Costco! Best wishes from SOUTH Korea!

Didn't expect the last name of the person who founded Price club to literally be Price, what a fitting name

My wife says I should get a "Kirkland" tatoo

I save a lot with Costco. I compared them to Kroger/Safeway/Etc that I was shopping and I realized I save way more buying bulk and deep freezing.

The big plus is that it’s simply clean and free of the homeless and crazies. I pay to shop in tranquility, thank you Costco!

I live in the greater San Diego area, and shopped in the original Price Club store. I still maintain my Costco membership, although my visits became much less frequent after COVID-19 made its appearance. As an aging widower, I don’t buy as much at Costco as I once did, but they still have things I can’t find anywhere else.

Costco is shopping pioneer. I have been member for almost 3 decades and never have a second impulse to leave it. As long as they have $1.50 hot dog and lowest price gas and my annual membership fee always paid.

Big large Pizza for 10 bucks.. Costco knows what they are doing.. and that pizza is great!

My family eventually dropped our membership because its not worth it. I asked a manager why they never label their aisles while moving stuff around often sonits impossible to find things. He said so people can wander around confused and end up "filling their carts with stuff they don't need". So I said "so you're trying to manipulate people into bad purchases." He said "exactly". True story. I don't play that game. Also, they don't pay as well as they claim. Only $15 in a city that needs $25 to afford rent. I'm out.

I worked as a wholesaler for a number of years. Knowing where
These companies get their merchandise can be a big plus.

I am fortunate to have a Costco about 4 miles away. That means we use it to buy gasoline. Ill stop in and buy the famous $5 rotisserie chicken on the way home. I also buy my pet products there. There teeth cleaning chews are less expensive than Greenies and they are grain free. Greenies charges more for their grain free dental chews. And the vets always say something about how clean my 10 year old Corgis' teeth are.
The quantities can be a problem but almost everything freezes well. They have great muffins and breads. With just two of us here anymore we are careful to buy what freezes well. There are interesting and tasty stuff in the back of the store. My wife takes their ravioli casserole to family functions and it gets eaten. She's even asked to bring it. The macaroni and cheese casserole is a hit too. I buy these oddly cut pieces of what is really filet mignon and use it for everything instead of cheaper tougher meats for Goulash or Stroganov. Or slice it really thin and make cheese steak sandwiches.
It's a shame that the food court had to be decimated. I always took a Churro with me on the way out.
I've done the numbers and $60 membership fee works for us because of the quantity of items we use from Costco. I bought my last laptop there and their tech support was very helpful in helping me clear out some junk people had put on it when it was a display item. I just purchased tires too. I also get about $1000 a year back from the credit card. Since I pay it off monthly and don't pay interest that's like a bonus.
The club's not for everyone but for us it works well. It's too bad it wasn't around when my mother was feeding eight kids.

Costco’s laptop insurance & concierge service are worth it alone.

I have been shopping there since there was Price Club and Costco owned by the same brothers in the early 80s.

My survey of local grocery outlets here in the Pacific Northwest showed Costco unit prices to be in the middle of the pack, and that was without considering the membership fees. That sure surprised me. I guess the feeling of buying in bulk gives most folks a sense of saving.

my membership will be one of the last things I give up

I knew that once Costco dropped American Express and took Visa payments that their stocks would go through the roof! Even with their $60 annual fees, I was able to save hundreds of dollars per year by stocking up on my favorite items whenever they’re on sales- which covered the annual fee. Costco made hoarders like myself looked sane during the pandemic rush when I didn’t have to panic buy anything because I was well stocked.

I had previously shopped at Costco when I went along with my brother or cousins or friends. But earlier this year I got my first membership here in Toronto and I'm sure the gas alone pays for my membership fees. I've bought high quality pieces of clothing (jackets, socks, sweaters etc., and I'm talking Canadian weather), buy majority of groceries from there, got my passport photos done there (can you show me anyplace else who do high quality passport photos for $6?), heck I even bought a new contract Samsung galaxy on an unbelievable deal this year. And don't even get me started on the food court. I would say, the two things that keep bringing me back to shop there are: unbeatable quality and price, and how good the service is (during both shopping and returns).

I have a Costco near my house, and i ended up going there more during the pandemic than before.
It's the perfect store for a lockdown, you have everything in big quantities. You can go there and do your normal errands, but everything you take in normal, you'll find there but in bigger quantities.
Then you don't have to go to errands for 2/3 weeks.
There's also the fact that this is a big warehouse, like Home Depot. Social distanciation is much easier than in a normal store, and there is less people in a Costco
I went there more frequently, and on regular stores less frequently

In Australia, Costco is the only place has toilet paper in stock earlier this year.

the savings on gas alone for me already paid off that $60 a year. The grocery savings is just bonus.

This report forget a few things;
1) Parking lot at Costco, I ended up only shopping at 30min before closing time to secure a parking.
2) vitamins selection, I only buy my vitamins at Costco and I can trust thier brands
3) Costco concierge/ tech support for my computer and camera with 90 days return policy
3) Costco employees are knowledgeable and will check if when their sold out items will be replenish or which other stores have it
4) my best purchase was the carry-on convertible under seat luggage 🧳 for $29.99.

The free samples alone makes me and the kids happy haha

No one beats Costco’s return policy

I love Kirkland products. Most of the stuff I try is awesome.

Costco is pretty much a one stop shop, especially for organic/non GMO. To beat the shortages of inventory items, you have to be aware of when these items are available or on sale every year. Most items that are rotated are seasonal which helps you to better understand when they will be in/out of stock. It takes a good solid year of tracking, minus a Pandemic or Ukraine Invasion. They did however raise prices unlike the video said of keeping them the same. We'll see once the pandemic and Ukraine Invasion is over if the prices return to previous levels. Sometimes the online price is cheaper than the instore. Compared to other subscriptions, Costco is a no-brainer to keep as you need food to stay alive.
The only momentary problems I've had with Costco was an item that was restocked with a newer model was mixed together in which I paid a more expensive price over the new one that looked the same. I also received an item that did not function, but did not care so long as it served its primary purpose. One time I bought a boxed drink item that was shy a bottle. Finally I wanted to get a compiled list of total yearly purchases that they gave me a hard time about since I was not the primary card holder (which the name made it obvious of who I was). This was so I could determine if I should downgrade/upgrade my membership.
The big Cons for me however is when they did away with the ink cartridge refilling service. Now I have to get a new printer (maybe an EcoJet) as online costs are much more for a cartridge vs. a refill. The gas stations seem to always be built 'bass ackwards' as they always create traffic, via a close stop sign or backed up traffic into an intersection. They need to dedicate a truck/RV/or pulled trailer gas pump as these vehicles can sometimes take up a whole row of gas tanks (like 3 at once). Not all Costco attendants fill up your gas for you so you don't have to leave your vehicle. Finally the subscription fee needs to offset sales prices from other stores as no coupons can be used in Costco. If food/gas prices go up then membership fee cost should go down to conteract.
Amazon is okay but when they add crap things from foreign countries, that's where I draw the line. Unlike Costco that does need membership to shop, Amazon doesn't.

Prior to the virus, the company that I worked for would use it for staffing coffee and other items. When we would purchase items for events such as food for a conference, the prices were really good.

21:42 - that expression on that womans face. LOL. "ayyyy!!!! you people!! stop fighting!!! ... or no chicken for you!" ROFLMAO

I have been a price club & Costco member since 1977. What keeps me renewing? The HIGH quality at very good prices.

I love Costco and we have a family membership mainly for groceries. My wife also bought like 7 pairs of glasses at the vision centre and I picked up my Bluetooth speaker from there (awesome for parties).
I shop on Amazon like most people do, but for totally different things. Amazon is more for random stuff like my movie memorabilia collection, whereas Costco is for household essentials which I almost exclusively shop for there. The rotisserie chicken and bulk boxes of protein bars alone warrant a membership.

Costco has saved me so much money!
As a single mother of 2 ever growing boys I need stock for them and Costco is it

As a younger millenial and 3-year Costco employee, Costco lags on these 3 things:
Their limited online options
Their store technology (return time, dated computer systems, etc)
Limited express options (self checkout, food court food app, etc)
Ultimately, they want you in the physical store to buy big ticket items.

I've been working there since May. I'm a senior in College & this is my 3rd retail job. It does not feel like I'm working retail at all. My workload is manageable & almost always stress free. I'm never running around doing 100 things at once. All of the work is streamlined perfectly.

I love Costco. Great deals and great customer service/return policy. It does help that I only live ten minutes away from one.

I'm a San Diego resident and life long Price Club member. Heck, we still called it Price Club for ten years after they merged. The first Price Club shown in the video is now a Costco and the store we go to most.

Costco and Trader Joe’s are the two places I shop most often. Costco weekly, Trader Joe’s monthly. Most other grocery stores only about once every other month, if that

You know you're getting old when they show Fedco in black and white pics and you shopped there as a kid.

YEP
When he said "over buying on what you planned"
My parents are like this all the time when they go Costco.
That's also why my dad is owes over $850 on his Costco card

I started working for Fed Mart in Escondido CA in 1976 as a gas attendant.. A great family of people back then,, thank you for this great Documentary,,

14:00 - The Kirkland brand meatballs are very good and actually are what broke my long habit of only buying big name products. I used to always view the store brand as inferior quality but Costco's Kirkland brand showed me otherwise.