If you own a small company there’s a high probability you’re already shopping at a Costco store near you. Based upon sales volume Costco has become the largest wholesale membership chain in the world. So you might just have a store around the corner on your part. Obviously this wasn’t always so. Now to state that Costco was ever really a small business wouldn’t exactly be true. But how did the Costco Wholesale Near Me we know today come about?
Well the history of Costco can sometimes be traced back to one man. He’s called the pioneer in the warehouse store? retail concept. His name is Sol Price and he started the original warehouse store called FedMart back in 1954. Eventually he would wind up selling this chain which is how we arrived at PriceClub. Sol’s next effort started in 1976. That is the year he started PriceClub in addition to his son Robert Price. Together they might build PriceClub into the largest warehouse store operation in the united states.
They started the organization on the outskirts of San Diego County, California. Initially that they had just one store which had been 100,000 square feet. Sol had were able to raise just a little over 2 million dollars to start the company. In 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 client whatever they were doing wrong? That’s as he found out which they necessary to open membership as much as government employees. From that point the company took off.
They catered primarily to small companies and government employees. Knowing they were not as likely to bounce a check. They refused for quite some time to just accept charge cards so they could keep costs down. Bank card fees for retailers can really mount up. In addition they kept their selection to a minimum but caused it to be cheap to get 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.
So what does this information about PriceClub have to do with Costco? Well Costco Corporate was started 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 along 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. So that 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. This was an arrangement which was not going to work. Within a year the writing was on the wall so the company was once again break up. Only now the company which may soon after be renamed Costco Wholesale Inc. was 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 Saturday Hours would find yourself back in charge and to this day he still is. Together with Jeffrey Brotman another founder and chairman in the board. The company does over 60 billion a year mtlfia sales and it has over 130,000 employees. It’s only real rival is Sam’s Club but Costco is the leader in its industry.
We mentioned Sol Price because without him Costco probably would not exist. He had an idea that ended up being revolutionary. He essentially created a new way of selling for the public. He took an enormous risk by doing this and almost lost everything. But he succeeded up against the odds and rather than leaving a company as his legacy he left a whole industry. He or she is a man who had the drive to achieve success and did. Do you possess that kind of drive within you?