Costco COST:US?
Page 1 of 3 123 LastLast
Results 1 to 10 of 24

Thread: Costco COST:US?

  1. #1
    Senior Member
    Join Date
    Jan 2011
    Posts
    1,454

    Costco COST:US?

    (Is there already a thread - couldn't find it?)
    What do you guys think of this one as sort of a 'core' US holding? I've watched it go up & up & never jumped on board... Comments?


  2. #2
    Senior Member
    Join Date
    Feb 2010
    Posts
    9,895
    I like their business model. They have a lower ceiling in terms of marketshare than mos retailers because they can only really address bigger families/people who don't care about variety. They also can't be a one stop shop. But I think Costco is less threatened by Amazon/e-commerse than most retailers.

    No comment in terms of the price you are paying for the business today.

  3. #3
    Senior Member
    Join Date
    Jan 2011
    Posts
    1,454
    ....and they charge you to shop there!!!!... Sollie Price was genius!
    thanks andrew

  4. Remove Advertisements
    CanadianMoneyForum.com
    Advertisements
     

  5. #4
    Senior Member
    Join Date
    Dec 2014
    Posts
    202
    Decent business model, excellent management team with a solid growing dividend. The only problem is it's way too expensive - a great company can be a terrible investment if the price paid is too high.

    I've been watching Costco for a year waiting to buy in but it's been too expensive. If it was $100 or less I'd be a buyer.

  6. #5
    Senior Member atrp2biz's Avatar
    Join Date
    Sep 2010
    Location
    Calgary, AB
    Posts
    861
    Quote Originally Posted by andrewf View Post
    But I think Costco is less threatened by Amazon/e-commerse than most retailers.
    This.

    Also, their supply chain model is excellent. Most items are picked by customers from pallets which minimizes the number of times inventory is handled by employees.

    I also like their extra wide parking spots!

  7. #6
    Senior Member
    Join Date
    Jan 2011
    Posts
    1,454
    ...as others have said... a great business model!:
    - no-frills warehouse/bunker stores
    - off beaten track locations
    -limited selction, placed on pallets
    - over-size portions or bundles (so you buy too much)
    - AND THEY CHARGE YOU TO SHOP THERE!
    How'd they manage THAT?
    Side Note: I'm often told the Costco here in St. John's is one of their best stores (volume? profit? average sale?) Our ex-premier Danny-boy Williams is putting together a major real-estate development on the far side of town (actually in back of neighboring Mt. Pearl.) Called "Galway" (locally known as "Danny-Ville") Anyway, story is he's offered Costco free land if they'll close current store & move out there - as a drawing card.

  8. #7
    The company reported net sales of $13.07 billion for the month of December, the five weeks ended January 1, 2017, an increase of five percent from $12.46 billion during the similar period last year.

  9. #8
    Senior Member
    Join Date
    Jan 2011
    Posts
    1,454
    ....I think I'm goin' in......

  10. #9
    Senior Member
    Join Date
    Feb 2010
    Posts
    9,895
    As a consumer, I'm much cooler on Costco. I am maybe more annoyed than most by their oversized packages that encourage waste. I do like that their quality is fairly high, I just don't need 1.5 L of mustard or 4 heads of lettuce. And you can often get better pricing by being a savvy shopper following promotions.

  11. #10
    Senior Member
    Join Date
    Mar 2012
    Posts
    3,287
    They work on a fairly strict 15% margin on products which pays for their operations (breakeven). Nearly all their profits come from memberships so, as long as memeberships keep increasing, their profits rise.

    Of course, they are branching out their income models by producing their own product lines (Kirkland) which has the same 15% margin at retail, but they get wholesale/production profits as well.

    They never claim to be the cheapest, in fact some items are more expensive, but they have great quality and excellent policies and service.

    It's a quality company. The question is, are they overpriced like most things in the market today?

    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

Page 1 of 3 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •