It would only be appropriate to have a look into the concept of warehouse club and the beginning of Costco Wholesale Corporation. Warehouse club is a very important and popular concept of retailing. A company starts to have warehouses at strategic points and stocks quality consumer products and a drive to enroll memberships for a fee. Members can buy any goods in bulk or small quantities at wholesale prices.

The company makes no arrangements for transport or any other requirements of its customers.

The company thus avoids all sort of overheads. Small to medium retailers and individual buyers who are members get their requirements at wholesale prices. The money turnover is very fast and the financial charges are extremely small are the two advantages for the company. Besides the above, the company also collects large amounts of money at one instant at little or no cost as the whole business is based on membership and their renewal. The company spends little or no money on advertisements. Often, gifts in the form of promotional coupons, and gift packs like buy three get one free etc. are indulged in.

The first wholesale club had its beginning in 1976 when one Sol Price and his son Robert opened the first Price Club warehouse in California inside old airplane hangars. It is now known as Costco Warehouse. Costco opened its first warehouse in Seattle, Washington by James Sinegal and Jeffrey Brotman both having some experience in wholesale and retail distribution respectively.

In 1993 Costco and Price agreed to merge their operations. The new formation had the name of Price Costco. They had customer friendly features like commonality of membership etc. In 1994 Price left the company to start off on his own and in 1997 the company changed their name to Costco wholesale Corporation. With an operating philosophy of keeping cost low and pass the savings to members Costco Wholesale Corporation grew up to become the largest American membership-only warehouse club.

… Costco offers great concessions through coupons for all their products. These coupons are very popular and as their customers list is ever growing these coupons are published in book forms which one can buy online. The compa ny publishes news every day on CNET and one can get the prices of all leading tires brands at Costco outlets for the day. Thes e coupons offer great con cessions and are hugely popular, with the greatest benefactor being the individual buyer.