“Everyday Savings,” Indeed You could be excused for thinking, at least momentarily, that “Whole Foods + Amazon” had aggressively cut prices on salmon. After all, Jeff Bezos (“your margin is my profit”) had already slashed prices on ground beef, fresh turkey, avocadoes, and a few other loss (?) leaders. Math Machinations Alas, it was not to...Read More
Two-Tiered Pricing, or, “The ‘Annual Membership’ Business Model” To the long list of consumer goods offered at a discount to Amazon Prime members, add one more: Thanksgiving turkey at newly-acquired Whole Foods. Sound familiar? It should. Training shoppers to pay an annuity-like annual (membership) fee is the business model of competitor Costco. See also, “Conversion...Read More
What’s in a Name Label? After decades(?) buying Costco’s Kirkland (house) brand — slapped on its milk, eggs, toilet paper and dozens of other items — I’d always assumed Costco had its headquarters in Seattle suburb Kirkland, just north of the city. Unh-unh. Costco’s headquarters (pictured above) is in another suburb, Issaquah, located about 10 miles...Read More
Reviving “The Milkman Model” for the Grocery Business “Costco is the latest retailer to see dips in its stock on the news that Amazon’s buying Whole Foods for $13.7 billion.” –Fortune.com [Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other...Read More
“Costco to Pay Special Dividend of $7” Costco shareholders (I’m one) got the welcome news last week that the company is paying a special $7 dividend per share next month. That’s enough to buy two (very) large slices of pizza, soft drinks, and a salad at the in-store snack bar (pictured above). In other words, lunch...Read More
“Coupon Caveats,” or, When the Sum of the Parts < The Whole [Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.] There may be valid reasons to buy an annual Barnes & Noble membership for $25. But, the promised $50...Read More
