Warehouse Wars Essay

834 words - 4 pages

People will do almost anything it takes to save money. Clipping coupons and ad matching are common avenues to reducing costs. Buying in bulk and purchasing items at a warehouse store is another way to save. The two largest warehouse stores in the United States are Costco and Sam’s Club. Costco and Sam’s Club share the advantage of low prices; however, Costco excels in member benefits, number of locations and overall shopping experience.
Sam’s Club and Costco have many similarities. They are both warehouse style stores, offering a limited selection of products in large quantities. Both stores require a membership in order to shop within them. They both offer their own brand of products, ...view middle of the document...

Sam’s Club has no distinguished markup cap. Thusly, Sam’s Club markup percentage may vary by product making savings unclear. According to product vendors, Sam’s Club has a very relaxed vendor selection process. Vendors are also allowed to sell their products for less outside of Sam’s Club. Although in published shopping comparisons Sam’s Club proved to be 3.6% cheaper than Costco on selected items, price is not the only deciding factor when choosing a warehouse store.
Availability to shop at a warehouse store is important. What good is being able to save money when you have to travel miles to the nearest warehouse store? Costco offers six hundred and thirty four warehouse stores world-wide for its members to shop at.
Whereas Sam’s Club is competitive, it falls short of its availability by offering its members only around 600 locations world-wide. This number could be inflated as Sam’s Club doesn’t define their total number of warehouse stores on their website.
The biggest area that Costco stands apart from Sam’s Club is its staff. Employees chat with members on the sales floor and usually initiate friendly exchanges while going through the checkout lanes. They are visibly more friendly and out-going. Why? The simple answer is, they like their jobs. The average Costco employee makes a whopping $20.89 per hour not including overtime and eighty percent of employees have...

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