wholesale posts
FeedPosted Dec 15th 2009 4:00PM by Tom Taulli (RSS feed)
Filed under: Wal-Mart (WMT), Costco Wholesale (COST), Small Business

A visionary in the hyper-competitive retail industry, Sol Price saw a huge opportunity -- in the mid 1970s -- to create a bulk discount chain with a membership fee model. It was the Price Club. By the early 1990s, the company merged with Costco Wholesale Corporation (
COST), becoming a powerhouse in the discount market.
Unfortunately, Price
died this week. He was 93.
Interestingly enough, Price started his career as a lawyer (he graduated from the University of Southern California). It was a great way to learn about the intricacies of different businesses. For example, one of his clients was Seven Seas Locker Club, which had a bulk-retail model for sailors during World War II.
Continue reading Price Club founder, Sol Price, dies
Posted Nov 18th 2008 9:43AM by Peter Cohan (RSS feed)
Filed under: Economic Data, Oil, Financial Crisis
2008's economy can be divided into two parts. The first is the period between January and July when oil prices ran up to $147 thanks to a speculative trade to short the dollar and buy oil and other commodities. The second part is the post oil's July peak where oil prices have featured a 60% to $55. Today's wholesale price report shows what happens to prices when supply exceeds demand and banks stop lending money to traders trying to profit from anticipated inflation.
Today's wholesale price report is a doozy. The Producer Price Index (PPI) fell 2.8% in October -- much more than the 1.8% decline economists had anticipated. The PPI decline was fueled (pun intended) by a 12.8% decline in energy prices in October. And as long as those energy prices keep falling, inflation will be in full downswing mode. (I am happy to report that I won my bet that gasoline would drop below $1.99 a gallon in Eastern Massachusetts by February -- I went to a station Sunday that charged $1.97.)
But there's more to it than simply declining oil prices. The entire economy was producing goods and services based on an assumption about demand that depended on easy access to debt. By shutting off the debt flow, goods are simply too expensive for consumers and businesses to pay the price. This means businesses will cut back on production and slash prices to clear their shelves of inventory. Then they'll shut down factories and lay off workers. And the lower demand from those poorer former workers will start the cycle anew.
Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter.
Posted Dec 7th 2007 1:50PM by Joseph Lazzaro (RSS feed)
Filed under: Consumer Experience, Costco Wholesale (COST), Mexico, Stocks to Buy

In today's market, the retail space is fraught with risk. High energy prices have crimped consumers' disposable income, and the housing slump has dented household formation -- a backbone of retail sales growth. Meanwhile, sluggish job growth is sending a signal that a U.S. economic slowdown is underway.
Hence, if one is to consider a retail play, it should be a well-capitalized company, with a demonstrated business model, and
Costco (NASDAQ:
COST) fits that bill.
Costco helped define the 'get it for wholesale' space and now operates 520 warehouses, primarily in the United States and Canada. (The company operates 30 stores in Mexico via a joint venture.)
Costco's philosophy differs from its competitors in that it focuses on a limited selection of national-brand merchandise and some private-label products. That laser focus, combined with buying direct from manufacturers and the company's bare-bones warehouses, enables the company to operate profitably despite smaller gross margins.
The Reuters F2008/F2009 EPS consensus estimates for COST are are $2.98/$3.39.
Continue reading For Costco, simplicity leads to profitability
Posted Jun 17th 2007 3:40PM by Kevin Shult (RSS feed)
Filed under: Good news, Consumer Experience, Competitive Strategy, Morgan Stanley (MS), Personal Finance
In today's world, people rarely carry large amounts of cash on them. People have credit cards for large purchases or even debit cards to access their checking accounts. ATM machines are on every urban street corner in America. But what happens when you're not at home in that urban setting? What do you do if you're on vacation?
I recently went to the Caribbean with my wife. We knew that most places would accept our cards but we questioned the exchange rate. Eastern Caribbean money isn't that strong in comparison to the U.S. dollar ($2.60 EC to $1 U.S.) and we knew that our credit cards would charge a service fee for purchases made in EC dollars. My wife, whom I consider a "world traveler," has always gone with the traveler's checks and prepaid card route. She would cash the checks in at the hotel and use prepaid cards so she wouldn't put her personal accounts at risk. I always used my credit card on vacation. Before our trip, I was sent to the bank to pick up a pair of prepaid cards and some traveler's checks.
The July issue of
Money magazine has a great article regarding the best way to keep exchange costs to a minimum with today's weak dollar.
I found out she was completely wrong - a month too late.
Continue reading Bring your debit card abroad, you'll save money