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What comes after a trillion

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  • #16
    Re: What comes after a trillion

    a customer of mine sold costco 2 million in product last year in 1 transaction. takes 90 days to get paid. any returns that don't go back on the shelf gets destroyed and the cost is absorbed by my client. they don't get the items back. they get destroyed. you need to read the fine print when you sell to costco. fortunately the amount held back from costco was under 2%.

    rick.
    phoebe it is

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    • #17
      Re: What comes after a trillion

      Originally posted by PLUMBER RICK View Post
      a customer of mine sold costco 2 million in product last year in 1 transaction. takes 90 days to get paid. any returns that don't go back on the shelf gets destroyed and the cost is absorbed by my client. they don't get the items back. they get destroyed. you need to read the fine print when you sell to costco. fortunately the amount held back from costco was under 2%.

      rick.
      Yes, you're absolutely right. Costco has an unlimited customer satisfaction return policy on everything except TVs and computers. The cost of all returns are borne by the manufacturer, not Costco. The promotions and coupon deals are also paid by the manufacturer. Costco's max markup is 14% which is a break even number, so they can't really absorb much in the way of returns or sales. It's part of the deal if you want your stuff sold at the #2 retailer in the country (#4 in the world). I know of some suppliers that have had closer to 10% held back, so 2% is pretty good.

      On the other hand, if a manufacturer is no longer at Costco or goes under, and you want to return an item years later, Costco will eat it. FOr them it's all about keeping people happy so they renew their membership!

      Btw, the reason TVs and computers are excluded from the return policy (you get 90 days, not unlimited) is because some people were returning their computers and TVs every year, then turning around and getting a new one... generally better performance and cheaper. I can see why no TV or computer maker would want to be on the hook for that.

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