Yeah, the idea that manufacturers tend to have on Club stores is that they hope to make up in volume what they cannot get in price. I've worked for 4 large CPG companies in my life and none of them have ever unlocked the secret of working in the club arena. All club items are dilutive to margin. From what I understand, only big beverage players have that down well (Coke, Pepsi, Beer, etc).
July 4 Barbecue Costs Climb to Record
- Thread starter Tsing Tao
- Start date
Yeah, the idea that manufacturers tend to have on Club stores is that they hope to make up in volume what they cannot get in price. I've worked for 4 large CPG companies in my life and none of them have ever unlocked the secret of working in the club arena. All club items are dilutive to margin. From what I understand, only big beverage players have that down well (Coke, Pepsi, Beer, etc).
Good for club shoppers. My wife knows the price of nothing... she buys whatever strikes her fancy. I, on the other hand, know the price of everything. Costco doesn't have the lowest price on all items, but in general is 30-40% less than other stores on a basket of goods. Over time, that adds up.
Amazon could kill Club if it plays it's cards right.
A bit off topic but presented as an addition to Tsings comments re: food biz. All those brands we see are very intimately connected so a corps decisions affect a large number of products marketing strats.
http://www.businessinsider.com/10-companies-that-control-what-we-buy-2014-7
http://www.businessinsider.com/10-companies-that-control-what-we-buy-2014-7
Before I completely forget the stupid and lazy demands that I produce a source for the claim that milk prices are falling worldwide...
Dairy prices hit 17-month low, amid China concerns
2 July 2014
"Dairy prices renewed their decline at GlobalDairyTrade auction, falling to a 17-month low, amid ideas that, with Chinese buyers relying on stockpiled product, a revival in values may be some time in coming.
"Prices at GlobalDairyTrade, which at the last event rose for the first time in four months, renewed their decline at the first of July's two auctions, falling 4.9%.
"The drop took values to their lowest since February last year, and extended to 28% the drop in prices so far in 2014.
"But it dashed hopes that the rise in values at the June 17 event had set a floor for values, and might lure back buyers which have stayed on the sidelines while prices have kept dropping."
More>>
http://www.agrimoney.com/14/dairy/
Dairy prices hit 17-month low, amid China concerns
2 July 2014
"Dairy prices renewed their decline at GlobalDairyTrade auction, falling to a 17-month low, amid ideas that, with Chinese buyers relying on stockpiled product, a revival in values may be some time in coming.
"Prices at GlobalDairyTrade, which at the last event rose for the first time in four months, renewed their decline at the first of July's two auctions, falling 4.9%.
"The drop took values to their lowest since February last year, and extended to 28% the drop in prices so far in 2014.
"But it dashed hopes that the rise in values at the June 17 event had set a floor for values, and might lure back buyers which have stayed on the sidelines while prices have kept dropping."
More>>
http://www.agrimoney.com/14/dairy/
1. Milk prices have gone down because China is using its stored milk? Really... that seems a bit odd. Let me go get some of that cheese for my oatmeal instead of milk.
2. since you denied prices going up were indicative of inflation... why would you post this now.
Were I to follow your style... I would post a graph of milk drinkers dying off world wide or something? Or two graphs show milk consumption going down and beer consumption going up during world cup years.
2. since you denied prices going up were indicative of inflation... why would you post this now.
Were I to follow your style... I would post a graph of milk drinkers dying off world wide or something? Or two graphs show milk consumption going down and beer consumption going up during world cup years.
wait a minute here... you believe in market forces when they are good for leftist propaganda purposes?
no.. but now you can't really deny that spending more money via quantitative easing destroys the value of the dollar.