Costco executive membership hard sell

[ceecee]

Sam's Club is doing the same thing. I'm sure they get a kick back from selling them, so they are pushy.

 

[pamrob]

I tried the upsale last year at Sams - didn't work out for me. Never seemed like the offers matched by spending habits. They have been pushing really hard again. I told the cashier no thanks, tried it, didn't work out. She was pretty nice about it. However, I watched her and another employee tag team the person before me. There must be some incentive program going on right now.

 

[wtpntigger2]

LadyTramp,

Why don't you just ask them at the check out to quit asking you ever again? Maybe there is a way they can flag the account so they won't bug you? I'd ask.

I was tired of constantly being asked as I had upgraded one year and it wasn't worth it, so they wrote the word NO in black permanent marker on my card. If they approach me with their scanner, I just show them the no and they say okay. Ask next time if that's a possibility or just do it yourself.

 

[apnep]

...so they wrote the word NO in black permanent marker on my card. If they approach me with their scanner, I just show them the no and they say okay. Ask next time if that's a possibility or just do it yourself.

There you go! That's what I would do!

Ang

 

[tinytink]

This is so true but I am an Excutive member so they get me on the postal stamps, each and everytime I am in the checkout line.

 

[eeyoregon]

The employees have to have some incentive to do this.

We (Costco employees) get no incentive what so ever. The employees don't like it anymore than you do but it's a requirement of our jobs. Don't blame the employee, who is just doing his/her job, blame corporate. The memberships are how Costco makes their money, period.

 

[bonoriffic]

The memberships are how Costco makes their money, period.

Memberships are a tiny fraction of Costco's business model. 1000 new members a month is only $50,000. That wouldn't cover payroll for a week. Costco makes their money on the 15% markup, which is the maximum they will apply. Most stores do 25%. They also only sell one brand of an item for most things, so you don't have to worry about having three types of mustard and dealing with inventory issues to manage. They also ship in bulk sizes, saving on transportation. They don't do bags which is a huge savings. Marketing isn't needed as they aren't advertising sales of brand X over brand Y this week. Finally they can negotiate better wholesale prices. Everyone probably heard about how they stopped selling Coke for several months over this very issue.

 

[Aimeedyan]

I feel a little left out LOL! We shop there a lot and never once have been asking about upgrading to the executive membership. When we bought our furniture years ago, and didn't know about it, I wish someone had! We could have made some money on the %.

 

[bumbershoot]

I feel a little left out LOL! We shop there a lot and never once have been asking about upgrading to the executive membership. When we bought our furniture years ago, and didn't know about it, I wish someone had! We could have made some money on the %.

Neither have I! Ever!

2 years ago we were buying quite a bit, and we went in to buy a TV and meant to upgrade, but totally forgot to! Augh.

I've actually had the membership desk check my yearly purchases to see if it would be worth it, and each time we would pretty much come out even (not in the TV purchase year, though), so we haven't really seen the point...

But we've never been asked if we'd like to! Weird.

 

[Fastpaks]

I would just tell the sales ppl that you aren't interested and to ask them to stop up selling cause you not interested. The fact is, Costco as a whole has a very low turnover rate compared to most retail outlets. We told our cashier (we say our, wife and I,) go to the same people all the time. People can get used to faces. We have been members for about 4 years and love them.

As too how they make their money, anything Kirkland is their product. Its well known they make decent money off this, not just member sales.

 

[eeyoregon]

Memberships are a tiny fraction of Costco's business model.

Sorry, but simply not true. Memberships are how they make their money...I get my share holder and employee reports that clearly show that over 70% of Costco's revenue/profit is generated soley from memberships. New members are just a small portion...it's the continued, renewable memberships that they bank on. This is one of the 1st things that you are taught at your new-hire orientation. The 2nd thing you are taught is that our patrons are members and not customers because we rely on their membership.

That is why Costco can blow the competition out of the water on prescription drugs because every other pharmacy out there relies on Rx mark-up profits to carry the store/chain. We are able to sell our prescription medications for slightly above cost, at cost or quite often below cost because our membership revenue is what our business relies on.

So, the moral of the story is that those hard-sell membership upgrades will never stop. If you don't want to be bugged each time, mark your card and simply say no thank you.

 

[roseburghughes]

Two years ago, two of the employees were working me hard to upgrade. I told them "no" three times in a row and the fourth time I went in they said to each other in front of me, don't bother he doesn't want to make money back. I smiled and walked out. I told my wife, the next time they asked me, we would upgrade and try it for a year. So the next two times they left me alone. Then they tried to upgrade me again and they both kept telling me all the great things executive membership would bring, including free blanket woo hoo . I had enough so I told them I would flip a coin to settle it. Heads I would upgrade and tails I wouldn't. They couldn't believe I would leave it to chance. I flipped a coin and it came up heads, so we upgraded. They were high-fiving each other and other employees. It is hard for me to believe they don't get some kind of bonus or something of value. We got a check that year for $125. We moved last year and I downgraded as we don't have a Costco in town any more. We don't go very often (one hour drive) and therefore we don't spend much so they leave us alone about upgrading now.

 

[packofjedis]

They ask me about upgrading every time I'm in there. And it's not just, "Would you like to upgrade today?" They argue the point with me. They tell me the totals I've spent, which yes include gas (but doesn't count toward your % back), but no they don't tell you that. We figured that out when we went to the membership desk and asked about the totals they were giving me in line.

Now I make a point of going through the self-checkout line. No one to pester me over there!

 

[brunette8706]

Sam's Club is doing the same thing. I'm sure they get a kick back from selling them, so they are pushy.

I have never, EVER gotten a hard sell from Sams and I go to about 7 different ones throughout the year, in Maryland and Florida.

 

[bonoriffic]

Sorry, but simply not true. Memberships are how they make their money...I get my share holder and employee reports that clearly show that over 70% of Costco's revenue/profit is generated soley from memberships.

http://www.wikinvest.com/stock/Costco_Wholesale_(COST)/Filing/10-K/2009/F46736685

According to the SEC and Costco this isn't true. Membership fees in 2009 accounted for 1.553 billion in revenue. Total revenue was 71.422 billion.