If you own your small business there’s a high probability you’re already shopping at a Costco store near you. Based on sales volume Costco has become the largest wholesale membership chain in the world. So you might just have a store nearby on your part. Needless to say this wasn’t always so. Now to say that Costco was ever really a small company wouldn’t exactly be true. But how did the Costco Wholesale we know today come about?
Well the historical past of Costco can sometimes be traced back to 1 man. He’s called the pioneer in the warehouse store? retail concept. His name is Sol Price and he started the first warehouse store known as FedMart back in 1954. Eventually he would wind up selling this chain that is how we arrived at PriceClub. Sol’s next effort came in 1976. This is the year he started PriceClub together with his son Robert Price. Together they might build PriceClub in to the largest warehouse store operation in the united states.
They started the company on the outskirts of San Diego, Ca, California. Initially they had just one store which had been 100,000 square feet. Sol had were able to raise a little over 2 million dollars to start out the company. During that initial year they managed about 16 million dollars in sales however they lost $750,000. It almost ruined them. Then one day Sol asked a customer the things they were doing wrong? That’s as he found out they needed to open membership as much as government employees. From there the business took off.
They catered primarily to small companies and government employees. Knowing that they were less likely to bounce a check. They refused for many years to accept charge cards so that they could keep costs down. Credit card fees for retailers can really add up. Additionally they kept their selection as low as possible but made it cheap to buy in bulk. They might typically only charge about 10 % above wholesale cost. They made their profits through sheer volume. Plus they kept their overhead low.
What exactly does all of this information regarding PriceClub relate to Costco? Well Costco Customer Service Phone Number was were only available in 1983 with a former PriceClub employee named James D. Sinegal who had previously been a PriceClub executive vice president and who had worked with Sol Price at FedMart. James in fact was together with Sam’s Club run by Wal-Mart PriceClub’s main way to obtain competition. But by 1992 Sam’s Club was overtaking both of them. Therefore it was decided that PriceClub and Costco would merge into one company. Robert Price became chairman from the board and James Sinegal became CEO.
The brand new company was named PriceCostco Inc. It was an arrangement which was not going to work. Within a year the writing was on the wall and so the company used to be again separate. Only this time the company which may right after be renamed Costco Wholesale Inc. managed to retain the majority of the store locations. Robert Price took other assets with him and formed Price Enterprises Inc.
Ultimately James D. Sinegal who had helped to found Costco Hours Today would wind up back in charge and to this day he still is. Along with Jeffrey Brotman another founder and chairman in the board. The company does over 60 billion annually mtlfia sales and contains over 130,000 employees. It’s only real rival is Sam’s Club but Costco is definitely the leader in its industry.
We mentioned Sol Price because without him Costco probably would not exist. He had an idea that turned out to be revolutionary. He essentially created a new method of selling to the public. He took a huge risk by doing this and almost lost all of it. But he succeeded from the odds and instead of leaving a company as his legacy he left an entire industry. He is a man who had the drive to succeed and did. Have you got that kind of drive inside you?