Why Costco Is So Damn Why Costco Is So Damn AddictiveAddictive

By: Eric Lora and Ronnie By: Eric Lora and Ronnie Jacko Jacko

About CostcoAbout Costco

• CEO: Jim SinegalCEO: Jim Sinegal• Jim’s Salary 450,000 Jim’s Salary 450,000 • Average CEO Salary 10.7 Million Average CEO Salary 10.7 Million • First Costco: Seattle, WA in 1983First Costco: Seattle, WA in 1983• 488 Location488 Location• $59 Billion in Sales $59 Billion in Sales • 4th Largest Retailer in County, 7th 4th Largest Retailer in County, 7th

in Worldin World

About CustomersAbout Customers

• 48 Million Members48 Million Members• $50 Goldstar Membership, $50 Goldstar Membership,

$100 Executive Membership$100 Executive Membership• $1.1 Billion a year from $1.1 Billion a year from

memberships.memberships.• 22 Visits a year22 Visits a year

The Addiction

• Simple ProductsSimple Products• Costco Connect Magazine• 14% Markup of Products14% Markup of Products• 4,000 Different Products 4,000 Different Products

compared to Wal-Mart’s compared to Wal-Mart’s 150,000.150,000.

• Treasure HuntTreasure Hunt

SourcesSources

ArticleArticleBoyle, Matthew. "Why Costco Is So Damn Boyle, Matthew. "Why Costco Is So Damn Cheap." Cheap." FortuneFortune 30 October 2006 30 October 2006

WebsiteWebsiteRetrieved January 28, 2008, from Costco Retrieved January 28, 2008, from Costco Web site: http://www.costco.comWeb site: http://www.costco.com