Behind Costco's Treasure-Hunt Shopping Strategy | WSJ The Economics Of 

Onkel Samuel. you work there , i can tell.

@@PHlopheActually, Costco gets high marks from the Dept. of We Look at These Things re: employee compensation & benefits; & Costco points to that as the reason for the high retention rate of employees. Happy workers are productive workers.

@@PHlophe I work there, and yes the benefits are pretty nice compared to similar stores.

Costco is overrated. Almost all produce products are more expensive that most of the retail stores. The only reason to keep membership there is their return policy

@@AzeriN01 I’ve found their products a few dollars cheaper than my local super markets. Never had a rude employee, and always a good experience shopping there.

Thank You

god bless you!

Oh my! Sole bless you!

invested it, instead

You’re a good soul.

@Ned Lowe Nobody needs to be paid to write the truth.

@@Cason40 yes you do, if the power brokers make it dangerous to write the truth.

My boy works at Costco and says they treat you really well but, ever since the pandemic, they haven’t been able to hire anybody so all their senior staff has been getting some serious burnout from having to work harder/do more and no overtime or added benefits for the effort! Still better than other retail/service jobs but, there comes a point where you have to bring on more help. Otherwise, the business will collapse from an exhausted workforce!

Government employees should never make more than taxpayers.

@@jeffw8218 government employees also are taxpayers

It’s WSJ... pretending they care is “off-brand”.

andrew100z das crazy

@andrew100z you sound like a very happy and healthy person

@andrew100z are you talking to me? None of those things apply. I think you should think about maybe finding why you're so stressed out and think about what triggers you to write something that's hard for others to make sense of. I have no idea what your context is. Nothing you said applies to this video or to me

I hear vendors do amazing as well. Many businesses built their entire business just on Costco. They big huge amounts and pay on time.

And you feel it in there, the employees are happy, they are there for YEARS, and as a result they are good at what they do. It's refreshing.

@@ahill4642 the employees do always seem upbeat and nice at a fast pace. One reason I hate shopping at Walmart is that their cashiers move super slowly and are frequently rude.

Yes. It is so nice to go into a retail store and actually be able to ask the employees questions. You can have a human conversation. Most other retail employees are burnt out, eyes glazed over, with a “please let me be anywhere but here” look. It shouldn’t be rocket science to treat your employees and customers well to ensure repeat business. Yet, here we are.

Agree !!

I think my cousin said there’s a limit of like 3 years now but I could be wrong

That "return policy" is really a satisfaction warranty with no time limit, except for electronics. Return clerks say all sorts of things to scare people from making crazy returns which I personally have seen way way too much, just to name a few, I once saw a guy returning a 2 yr old rusted BBQ because the igniter doesn't work anymore, and a lady returned a half eaten watermelon because it wasn't sweet lol...

wwwm mi ionic lol ilium I’m I’m w Mmmmmnhhm eh J mmm ha When we nm m n gh now Me M Mmwnm Jmnwhh L Jukebox

Well they did ask me a question but that's okay. The return policy is what keeps me shopping at Costco. They are honest to me and I am to them. It works for us and I am happy.

That’s because the food court actually loses Costco money

It's a loss leader meant to give you an extra sense that you got a deal

Delicious is a stretch. Most everything there is high fat, high sodium and/or high sugar. I buy the hotdog once every few months and that's it.

@@OMGWTFLOLSMH ...and the pizza sucks by NJ standards

Delicious?? Are you serious

and really costco is just organized. walmart has trash everywhere and everything is locked up and wait forever

@@kalidilerious Agreed. Costco just feels like a much nicer place. I guess people steal things at Walmart a lot.

Same here!!!

I'd go there just fornsamples

once in a lifetime deals on a 5 gallon jug of mixed nuts lol get a grip

I really miss the free food samples. I've bought many a product at Costco because I was able to taste test them first.

@tommy aronson who is they

@@jiankuo In Tommy's situation it means "I"

@@jiankuo omg windshield wipers ALWAYS at costco

..with radish

the soda price went up 10 cents but the hotdog combo is still the same :P

It really is amazing that the hot dog has never gone up in price since it first launched

you think a hot dog for $1.50 is "high quality"?

Many here in Chicago praise the Costco hotdogs 🌭!

If an employee consents to work for that wage, then it's fair. So yes, the employees would agree the wage is fair

@@stuflikethis hold on let me put on my IQ Lowering 2d 4bit glasses real quick. Yeah I see what your saying...

Their prices are competitive, and their goods are superior.

@@SisyphusJP the only people with low IQ’s are you and those that liked your comment as the previous comment makes perfect sense. But then; we do have a great education system in our country.

@@xr6lad some people agree to work because they need work not because they believe the wage is fair.

I’m 0.6 miles away from Costco 😆

Oh dear.

@HahThatsWhatSheSaid LOL 😂 3 miles is like 500 feet in Texas units. It is at the highway exit we always use so that’s handy. They have over 100k members at our Costco alone 😮

Well played sir. I too am 3 miles away from one 😁

It was interesting when the narrator mentioned that being a good thing. Typically consumers dislike it, and are not going to shop more because of the sense of urgency? Or whatever tf 😂

Lol i am the same

Why is this so true

Me too

girl, SAME. like the betrayal is REAL

My husband gets insulted if I go without him

You are correct. And the only economics based thing they said I question. I keep hearing about how Costco makes its money from membership fees, but the executive card I had for my 2 person household paid us back a couple times over, so I'm calling bs. If an absolute lightweight like me was upsold something that even I profited from, then how could they be making money with them? And there's no way their margins could be that small on their items that they essentially break even on thousand of dollars annually of purchases. They say there's an 11% markup, yet there's no profit in that when all is said and done? C'mon. $166 billion in sales, and they break even, and that's with 1/4 of that coming from and in house brand? C'mon.

@@jasondashney i was told 12% at my employee orientation there(still work there). Costcos income is mostly memeberships. Im sure there are tons of ppl who pay for the membership and only shop there a couple times a year. My parents for example have shopped there only 3 times in the last year which creates a huge profit margin. Costco also will often lose money on the gas just to lower the price to entise ppl to buy the membership for said gas. And the gas is detergent gas which is much better for your car. I did the math and if you spend over 3000 dollars a year(250 a month) at costco then you make up the difference between regular and executive memberships. And if you spend double that then your membership is essentially free

@@Tim_Marshall73 maybe you are right. Maybe it's like how gyms rely on the fact that the vast majority of people with memberships don't really go to the gym.

They are happy because they have great benefits and pay well.

Fastest checkouts I've ever experienced, even if you have a buggy piled full of stuff.

The managers keep stats of the cashiers speed. If it drops too low they don’t stay cashiers for long

Sure.. if you define waddling around leaning on a cart at a slow pace an “Incredible” source of exercise.. Maybe if you’re 80...

BananaChipzzz hey man.. most ppl don’t walk much, not everyone is training to be an Olympic athlete

Nothing better than wandering around in a cart traffic jam, inhaling Covid spores.

Chicken bake/hotdog is also good

Never dared try the food court. But I do love buying the rotisserie chickens.

@@beverlyanne5699 the food court has really good food. They literally lose money because they use good ingredients. They lose money there to get people to buy more things in the rest of the store

Too doughy

Because it doughy and greasy? Americans wouldn't know good food if it smacked them upside the head. Hence more than half the population being obese or overweight.

I agree for the price but is there really a quality in gas? Gas with an octane rating is the same everywhere, isn't it?!

@@Seskoi i believe Costco gas has the chemicals similar to Chevron gas that help keep the engine clean. I feel like cheaper gas stations, the mileage isn't as good. Maybe it in my brain but I would advise you test it out if you can. Zero out your trip odometer after fill up then at the next fill up divide your miles by gallons filled and compare it. Its a fun experiment

@@Seskoi Costco is Top Tier fuel, as is many major fuel brands. Most auto manufacturers recommend it. Top Tier simply means it has a certain amount of cleaning additives that are above the EPA mandated amount.

@@Seskoigosh no. You would think but no. I notice that gas from certain places definitely ‘burns faster’ than other places. I can fill up at Costco once a week and still have plenty leftover when I refill for the new week on Sunday.

Or they couldn't get into graduate school...

Absolutely agree. Where else can you work 20 hours per week, for better than minimum wage, *and* still get medical insurance, PTO, 401(k) etc. There's a reason I've seen the same faces serving me at Costco for the last 20 years.

Amazon is capitalism on steroids

I got full benefits working part-time at Amazon.

@@olivierauberger nice try Jeff

@@NamaDoodoo Sorry to burst your bubble, but I've had several kids work at Costco while at college. They all got full benefits while working part time.

Another reason not to shop there. Quality suffers

@@Isochest L take

*undercutting

Kind of like a trained ape

I use money to better my life and solve my financial problems from the profits I make from every investment, I invest on Bitcoin that's why money come to me easily.

Buying Bitcoin doesn't make you a winner, the ability to make profits daily out of your capital is what makes you a winner. stop depending on the market price to make profits, choose trading over holding.

@Chris Davis This lady is no joke, she's a genius when it comes to technical analysis. Love her.

I saw the recommendation but I didn't bother chatting her up I keep loosing tally i still don't understand how the forex market works tho.

My cousin recommended her to me. He has been investing with her for some months now, but the profits he gets is not that large, I've seen other traders who offer to give you 500% of whatever you invest

Self discipline helps

Your friend spends 30k+ in Costco every year?

@@LednacekZ Didn't ask, but how did you get to that number? I do know someone who spends over a quarter million a year at Costco. Runs a business. Different guy, not the same fellow.

Is anybody is under the impression that they have their own dedicated microwave popcorn factory, battery factory, jeans factory, socks factory, bottling plant, butchers etc?

@@jasondashney😂😂😂😂 LOL I will say the KB socks are top tier and only $9.99 for 10 pair!

@@tailorforeman7082 I’m wearing some right now.

You never been to México bro

@@justinwil4365 Mexico is too dangerous

I wish the Canadian Costco stores would sell churros! Every time I go stateside I like to hit up a Costco just for the churros.

@M E Philippines to

@@justinwil4365 My Spanish teacher in high school bought Costco churros to show us how they are supposed to taste lol. They are so good m8

And yet, my Executive membership gives me a check each year which more than covers my membership fees, and that is primarily from buying staple goods (cleaning supplies, bread, milk, eggs, and vegetables) for a family of five, and cheaper than I can get it elsewhere. So I guess the money they make from membership is from those who haven't done the math and upgraded to Executive. Having EM didn't make me shop there more - I just added up my expenses at the store for a year, and worked if 2% of that would cover at least the difference in membership prices. Then it became a "no brainer".

@@stainlesssteellemming3885 They also make money from your credit card fees. There's nothing wrong to entice you to get that when they can easily make it back with the fees.

@@randomname9758 Not sure what you mean here ... unless you are referring to Costco branded credit cards. Yes they make money on those, but they also pay CC fees for every non-Costco Visa card which is used in store. I actually have a cash-back card from a different supplier, so wen I shop there I get a rebate from Costco, and a rebate from my CC company (probably about 4-5% in total).

But 275,000 employees on the dot.

And 342 employees per location. Hmm. are they including all former employees too lol

Blake Petipas tons of corporate too

over 804= about 804 (but at least 804)

Talking about what the rich do to earn more money, can you risk losing 20%--30% of your investment if it did not go in your favor, can you stand it.

@@samuelteddy.439 To me I believe investment is meant for the already rich, the rich invest their money in commodities, bonds, stock and now crypto when they are tired of working all day long and having sleepless nights.

@@vikramayang190 I will partially accept this your claim.

Few weeks ago elon must bought some billions dollar worth of Bitcoin, which today with the current rate of Bitcoin the profit already generated by elon must is more than the profit he could have made selling tesla cars for about 4-5years. Just imagine that.

Investment isn't that easy the way you guys sees it..

i know.tons of folks go there cuz of how cheap those things r. it's a great deal.i wish i can go there all the x.:(

I'm that guy, I buy my coffee, booze, and meat, then I leave

I did it. I bought a home safe. It was right up front so I could get it & hit the self-checkout before the fever hit.

I bought a bag of chips, some meat and cheese and the guy at the exit jokingly said, is that it! Man you must go back and shop more... I still love em

I once just needed underwear so I went to Costco to get it. I got a couple comments while in line about that. "Short shopping trip eh?" "Huh, that's it?" "A 1-item Costco trip, if only I had the restraint"

Electric cars take hours to charge. If you're stuck at Costco for 2-4 hours that quickly turns into a shopping trip.

I avoided the food bank times. Sucks having people block aisles.

If you and a friend spend enough money, you might as well get the executive star membership and it could pay for itself.

Thank you! I have a good mechanic that I would never change, but I love Costco and their tire shop too. Keep on living the dream!

I totally agree. I actually have seen that the website and store are like two different companies. Its kind of annoying really. Especially if you find someone you love in the store, but they have the wrong size. The website doesn't help you. Its better to have a manager check others stores and drive to that store to get the item you want.

I work for Costco and you are correct. The phone app is awful and other areas of IT in the business need a major overhaul. That said it is pretty much the only area that is like this, they have nailed everything else.

I agree. But based on this video it seems likely that they intentionally aren’t investing much in the online experience because it’s not their focus and they don’t want to compete with Amazon.

I never have any problem with Target. I feel their products are a bit pricey for me😂

Search up Yosemite Prepper on RU-vid. He has prepping videos (I’m a fan)

i live by their vodka. The price is insane.

I think the wine might the "like cocaine" part of that metaphor...

@@amypark667 $16.99 in the USA would be $60 in Canada once the government gets their taxes. Gotta pay for that free healthcare somehow.

Wine is icky

I think costco has become an option for those on a tight budget. 5 dozen eggs $11.99! rotiserrie chicken $4.99, xl pizza 9.99, hot dog with soda $1.50. Also a lot of the necessity items are cheap. detergent, TP, bread, etc etc

I think it is actually great on a budget, their goods have great expiration dates and their milk/egg prices are atleast the best in my own area.

I can't speak for Australia but as cashier for costco that is not how our store is run. People working the sub departments like Deli, Bakery, hearing and optical rarely get called upfront as they have their things to take care of. Clothing, Majors (TVs etc) and the rest of the store have to have at least 1 employee working in each of those areas. All other employee's are fair game to get called up when its busy, the managers and even the store manager will and have worked checkout. Getting people through the checkout is a major priority, If the lines are more than 2 carts waiting they will try to open more lanes if at all possible.

Nope - you're not alone. But then that's how I shop generally - not a big "impulse buyer". I don't quite see how people can blame stores like Costco and Target for their own lack of discipline and self-control.

Not alone. I made a commitment to bring a list and stick to it. No more wasteful items to “try” or captivated by a different thing. I go with a list, grab what I strictly want (few items) and get out quickly.

I saw a comment by steve that made exactly the same points. Is this what you've become? A Steve derivative?

@@thursdaythought7201 IDK who Steve is. We probably watch similar things and came up with the same observations independently. That is something you don't expect from WSJ, who should've done research on what their main competitor has already came up with.

Costco probably bought an advertising package with both WSJ and CNBC - which included a business-focused RU-vid video, some print ads, and some online advertorials.

Maybe CNBC is actually the WSJ integration and not the other way around

@@omi_god says a guy watching CNBC that is censoring any videos of your new Presidents dementia that we are seeing in the rest of the world and who the lies of CNBC and CNN don’t air. Hilarious you support censorship of what the world sees as a dangerous developing situation from a man that often doesn’t know who he is talking to, gets confused and don’t even recognize family members.

They have to prove that Costco is actually popular among the peasants to the Park Avenue elites who have never set a foot inside one

How is a grocery hall cringe? There are much worst.

Why do you think RU-vid wants to look at a picture of your weak back?

@@b4u334 😂

For real 😂

or when you find a really good product, but its not there anymore the next time you go

What does Trader Joe offer that other grocery stores don’t?

@@wackyworkbench OMG! Unique environment, one-of-a-kind and innovative foods, great value and friendly staff!

Loyal American consumer

I wish there was one of either store near me, but they are built few and very far apart unless you live in a large metropolitan area.

Market cap is only 1/10th of Amazon currently. Some sold off their Costco stock in the recent dip. I just laughed and bought more.

Maybe if it were only comparing retail, but Amazon has so many product lines. Video, web services, etc..

lol did u really?holy.u sure got sidetracked.i hope it was worth it.:D

You remembered you’re vegan and threw in a TV

That is part of the Treasure Hunt part of Costco marketing. They want you to cruise every aisle and see what is new. They want youto find something more to buy while you are there.