If you own a small company there’s a high probability you are 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 from you. Obviously this wasn’t always so. Now to say that Costco was ever really a small business wouldn’t exactly be true. But how did the Costco Locations we know today come about?
Well a brief history of Costco can sometimes be traced back to one man. He’s referred to as pioneer of the warehouse store? retail concept. His name is Sol Price and he started the original warehouse store referred to as FedMart back in 1954. Eventually he would wind up selling this chain which can be how you arrived at PriceClub. Sol’s next effort started in 1976. This is the year he started PriceClub together with his son Robert Price. Together they could build PriceClub into the largest warehouse store operation in the united states.
They started the business on the outskirts of San Diego, Ca, California. Initially they had just one store which had been 100,000 square feet. Sol had was able to raise just a little over 2 million dollars to start the organization. In that very first year they managed about 16 million dollars in sales but they lost $750,000. It almost ruined them. Then one day Sol asked a client what they were doing wrong? That’s when he found out that they needed to open membership as much as government employees. After that the business took off.
They catered primarily to small enterprises and government employees. Knowing they were more unlikely to bounce a check. They refused for several years to just accept credit cards so that they could keep costs down. Charge card fees for retailers can really mount up. They also kept their selection as low as possible but managed to make it cheap to buy in bulk. They could typically only charge about 10 percent above wholesale cost. They made their profits through sheer volume. And they also kept their overhead low.
What exactly does all of this information regarding PriceClub relate to Costco? Well Costco Corporate Office Phone Number was began in 1983 by a former PriceClub employee named James D. Sinegal who had been a PriceClub executive v . p . and who had worked with Sol Price at FedMart. James in fact was along with Sam’s Club run by Wal-Mart PriceClub’s main way to obtain competition. But by 1992 Sam’s Club was overtaking them both. 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 new company was named PriceCostco Inc. This was an arrangement that was not going to work. Inside a year the writing was on the wall so the company was once again separate. Only this time around the company which will soon after be renamed Costco Wholesale Inc. were able to retain a lot 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 Wholesale Holiday Hours would end up back in charge as well as this day he still is. In addition to Jeffrey Brotman another founder and chairman from the board. The company does over 60 billion a year mtlfia sales and contains over 130,000 employees. It’s only real rival is Sam’s Club but Costco will be the leader in their industry.
We mentioned Sol Price because without him Costco probably would not exist. He had an understanding that turned out to be revolutionary. He essentially created another way of selling to the public. He took a massive risk in doing so and almost lost everything. But he succeeded against the odds and rather than leaving a company as his legacy he left an entire industry. He is a man which had the drive to succeed and did. Do you have that kind of drive within you?