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YOUR NUGGET – COSTCO INCREASE STRATEGIES

FAVORITE RETAIL STORE

American Customer Satisfaction Index Names Winner

To determine what was people’s favorite go-to store, the ASCI looked at over 400 companies and surveyed more than 500,000 customers. Walmart and Sears tied with the lowest score while Costco was “Tops.” 

As most of you are aware, we have a Partnership Program whereby we furnish benefits to donors as a thank you for their support. One benefit of the Elite level is having the opportunity to periodically join with me and other successful achievers for onsite learning experiences at outstanding companies.

One of our trips was visiting Costco’s store #1 in Issaquah, Washington. Because of a good connection and favor, Costco’s Chief Financial Officer Richard Galanti agreed to meet with our group. He escorted us to the television department and then mounted a ladder. It was a great time of learning from a top-level strategist.

Here are some of Costco’s “Marketplace Winning Strategies” that he shared:  

1. HIRING – Find people who are smarter than you in specific areas. Pay more and get the best.

2. LOYALTY – Whenever possible promote from within. Treat your people as valued partners. 

3. CUSTOMERS – Concentrate your efforts on your primary customer base.

4. UNIQUENESS – Exceed customer’s expectations. Create a healthy paranoia about being special. 

5. PLANNING – Think long-term even when there is pressure to sacrifice that for short-term gain.

6. VENDORS – Be tough but be fair with them.

7. SET A COMMUNITY EXAMPLE – Obey the laws and don’t cut corners or try and see what you can get away with.

8. DILIGENCE – Watch the details and most everything else will work out.

He then shared Costco’s operating philosophy:

“We are committed to offering the highest quality items at the lowest prices. We are more focused on reducing expenses than on increasing revenue.”

Costco continuously does research on ways to reduce costs of goods and services. One of them involved the packaging of grapes. 

They discovered that by reducing the height of their grape packages by one inch, they could pack an extra row in each shipping container. That change is saving the company over one million dollars a year.

Think of that…

ONE INCH = ONE MILLION DOLLARS

The next morning our group spent time discussing how each of us could input some of the strategies we had learned into our businesses and/or ministries.

I would suggest that you pause and do the same. One idea might not save you a million dollars, but could result in you experiencing Fresh Increase.

If you would like to listen to Richard’s 40-minute presentation to our group, click below.

INCREASE VERSE

“You were faithful in the little things,
therefore I will give you more.”

Matthew 25:23