Luca Pietro on Why Costco Keeps the Price Low
Luca Pietro
Why Costco Keeps the Price Low
Claims and stances
Transcript
- 0:00 Have you ever wondered why Costco is so much cheaper than other competitors and other grocery stores and other wholesalers?
- 0:07 Well, obviously there's a few main reasons that everyone's pretty much aware of, such as the fact that they're buying bulk from these suppliers, um, allowing them to decrease the cost that they're selling to consumers at.
- 0:19 Um, however, there's a couple of things you might overlook.
- 0:22 First of all, we start with their iconic food court that sells hot dogs for $1.50, pizza slices for a couple bucks, and uh lots of variety of other things.
- 0:32 And this is a huge value proposition because you know, when you're at the grocery store, you're getting all your things you need to.
- 0:40 Um and then you also have if you want to get food, you need to go somewhere else.
- 0:44 Versus a Costco, it's all there.
- 0:46 You're gonna be at Costco for an hour or two if you're shopping there usually.
- 0:49 Uh so it's nice to be able to have that convenient cheap alternative right there.
- 0:53 On top of that, Costco is one of the few wholesalers who doesn't pay for labeling and shelving space.
- 1:02 Uh this really is evident in their stores.
- 1:04 Their employees aren't restocking shelves constantly, so they don't have to pay for the labor, they don't have to pay for the shelf space.
- 1:11 They just take the pallets that come in through shipments and lay them out on the floor in a super strategic manner, um, and making it a maze almost so that you have to walk through the entire store uh to get everything that you need if you're getting a few different things.
- 1:24 So uh some interesting things about Costco, let me know what y'all think.