The Costco Craze & amp; International expansion ...

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I just saw an enviable example of free advertising for Costco yesterday so ... in an airplane. After the film finished in flight, instead of playing the usual sitcom reruns of television, appearing on all screens throughout the aircraft, for the maintenance of the captive audience of theft, it was a CNBC documentary called "The Costco Craze".

Who saw the Costco mania on this flight - and it appeared that more than 200 people - were essentially just the infomercial 42 minutes to Costco.

There was hardly a derogatory word in the whole room, the, which is unusual for a CNBC report on everything.

Since the documentation reveals little information is known, for example, like Costco profit margin compared to other retailers, Costco, as buyers collect toys, and how the influence of Costco has changed over the marketing of the wine world, The Costco has madness good entertainment value for the average consumer. But because all forms reveals strategies Costco retail counterintuitive used to increase the average price of the tickets and keep loyal customers, the Costco Craze incalculable strategic value of the average retailer.

Some retail catchy strategies work for Costco are:

• With minimal in shops and forcing customers to walk around to find things
• Limited number of products (10,000 compared to 40,000 in most supermarkets and 100 000 from Wal-Mart)
• Choice of limited size (Supersize is the only size)
• Wage countries, which is two to three times larger than the average sales are

• It provides health insurance benefits and 90% of employees
• It includes luxury items at value goods mix
• Instead of going to the way Apple uses / customer retention strategies of low-tech high-touch
• Instead of asking: "How can we more customers to pay for it" request "This could be cheaper for the customer"?

The sum of these two strategies are unorthodox results Costco one of the largest retailers in the world reduced prices that you want. First, the average ticket for the Costco customers is high because the customer firmly believe that they can save more money by spending more money. Secondly, more-is-better even environmental, Costco customers tend to buy on impulse when they spot the products that they do not expect at a discount department store are available. And buyers are not rubber, limited to Costco impulse purchases to buy flat screen TVs.

I found an excellent example of the power of the retail sales momentum recently when I talk to a man who lives in New Zealand. It is the organizer of a Ukulele Orchestra (Who knew that such a thing exists) and was so friendly, the ease with vintage rock 'n roll classics adapted to the ukelelele show. (Surprising and, incidentally). I asked him how he wanted to play a ukulele for the first time, he decided.

Ed told me he had a $ 200 to Hawaii found a few years ago, and during his visit to the Big Iceland, one of his friends a super store had made. There were all kinds of great things that Ed had never seen in New Zealand, and he said, before he knew he was. A basket full of things, even though I knew I had to New Zealand to reload (Maybe he bought an extra suitcase there as well.)

When I almost finished shopping, Ed saw a ukulele that appear randomly in the middle of a group of unrelated products. His friend told him jokingly that he also take this ukulele home in New Zealand as well. Ed laughed the jab, then added the ukulele in your shopping cart.

When Ed returned to New Zealand with his new musical instrument, he taught himself to play online tutorials. He said he wanted both ukulele class at a local school taught and then formed Ukulele Orchestra Russell, who now has 14 members and is in the region known as they play in concert events and local meetings.

Upon hearing her story, I thought it an interesting coincidence less impacted impulse buying had a lot of people. I told Ed and said. "Yes, it was a fantastic shop Can it say that ...?"

Costco. What else?

Costco craze is not only a consequence of the psyche big-is-best in America. Costco stores in 7 countries have shown that Costco formula works equally well with consumers outside the US So instead of the opening of five stores per year worldwide, as it has done for the past five years, Costco three times more open international markets in the fiscal year 2013. And unlike other retailers to open in the United States international locations as a defensive strategy, international expansion has not compensate Costco internal weakness, because currently there is no.

Apparently know Costco Costco is love, no matter where in the world is Costco. And international consumers are fast part of the madness Costco probably not much at all, where Ann Romney is doing (or not) their purchases of the Romney family. They just want quality products, good prices and a surprise, occasionally ukulele.

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