A couple of years ago I had a strange coincidence regarding a plasma screen 
TV. My company is a reseller, as such we of course purchase wholesale direct 
from distributors. I got an e-mail from one of my distributors with a price 
list containing this certain TV, don't remember the make and model though. 
for $1100. Later that evening I had to go to Costco where I saw this same 
plasma screen fro $380 more. This distrib, PCW, generally is not known for 
great prices in regards to items such as plasma screen TVs. As I looked 
around, I saw everything from hard drives to mice that could be had for 
cheaper. And I do not mean just wholesale, but even retail. FYI, just for 
those that might not be familiar with how wholesale distribution works, it 
is all based upon extreme mass volume. With that said, items really are not 
marked down that much. In fact most of the time when I need to purchase a 
switch I go through a separate broker who has excess quantity to get rid of 
rather than a distrib. Now with that under consideration I just do not see 
how Costco could sell themselves as such a great savings when in fact they 
were marking up way too much. Maybe I am wrong, but I always thought the 
point to Costco and Sams was wholesale prices, where by they making their 
money off of charging you to just shop there.

Now mind you I am not a Costco fan at all, it was my mother who put my wife 
on her account because at the time my wife believed that by buying enough 
meat to supply the whole British army, we would save money.
I think most stores do what you said, they drop prices below retail just to 
get you in the door. I have no doubt that Microcenter uses this as a 
strategy against Best Buy and CompUSA, who do not have the best prices 
anyways. Thank god for Pricegrabber and other search engines, it is amazing 
how much you can save by NOT going to places like Best Buy, CompUSA, etc..

Sean Waite


-----Original Message-----

From: Mike Miller <mbmiller at taxa.epi.umn.edu>

To: TCLUG List <tclug-list at mn-linux.org>

Date: Wed, 21 Feb 2007 12:40:46 -0600 (CST)

Subject: [tclug-list] [OT] Costco prices




On Wed, 21 Feb 2007, Sean Waite wrote:



> Just last weekend I had to stop in at Costco to pick something up for 

> someone else. Personally I find Costco to be a complete rip-off. While I 

> was there I saw 50-pack of DVD+Rs for around $40-50.



This is somewhat OT, thus the new thread.  I just want to say that Costco 

gives great prices on some things.  When I got married a couple of years 

ago I researched booze prices and bought a bunch of bottles for the 

wedding.  Costco beat everyone else in town, usually by a fairly 

substantial margin.  On most days their gasoline is cheaper than anywhere 

else I know of (often by about $0.10/gal), but I'm not sure that's 

consistent.



One of the ways that Costco and Sam's club make their money is by selling 

some items at ordinary prices -- sometimes even higher than those at the 

grocery store.  The other more obvious approach is to buy massive amounts 

of smaller numbers of items.  If you don't have a stand-alone freezer or 

plenty of storage room, it might not be so great to shop at Costco. 

There is no doubt in my mind that I save plenty at Costco by buying the 

right things in large quantities.  I just ignore most of the stuff in 

Costco -- it isn't a good place for impulse purchases of big-ticket items. 

Apparently, it isn't a good place to buy DVD+R media.



Mike



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