More than 6.5 million Canadian households are members at Costco.Either one in two household in the country.And more than 90% of them renew their subscription each year.How to explain this enthusiasm?
For Hugues Corbeil, a Laval resident, the answer is simple."Our purchases at Costco represent an average of almost 25% saving on a host of products, including school items, nuts, cheeses," said this father of two girls aged 9 and 11.
Products sold to eyewear, children's clothing including ink cartridges as well as propane cylinders even represent savings of at least 50%, underlines this executive member who frequents the Laval warehouse once in bothweeks.Visits to which he takes the opportunity to fill up with gasoline.At Costco, he adds, the liter is regularly sold from 5 to 10 under cheaper than in the other service stations on the island Jesus.
How to explain these price differences?Costco is recognized for its stock management units limited to 4000 products per warehouse.In comparison, supermarkets have an average of 40,000.Consequently, the profit margins of articles and foods at Costco vary between 8% and 15%.Most products are sold about 30% cheaper than in grocery store.
According to the Costco 2015 annual report, more than a third of the 44 million households that are members through the globe have the executive card sold at $ 110.Or double the regular subscription at $ 55.This executive card offers a 2% discount of the total value of annual purchases up to $ 750.According to Costco, executive members have formed nearly 65% of $ 113g of purchases made in the 686 company warehouses last year.
The worst purchases?
The worst products that can be bought from Costco?All those that we have not scrupulously planned!"You have to be vigilant and be disciplined with her purchasing list," warns Marie-Pierre Lévesque, from Sainte-Marie-de Beauce, who has been frequent Costco warehouses for nine years."Large formats and their attractive prices can easily cause compulsive purchases ... and result in waste", admits this consumer.
Executive member at Costco de Saint-Romuald, this mother of three says that she and her spouse have probably lost the equivalent of just over $ 200, or even $ 300 during their first visits."We have adjusted our behavior by raying certain products from our list, in particular the crackers that the family could not consume everything before the expiration date," says Ms. Lévesque.
Same thing for ink cartridges whose content has ended up having a lot of use of being used quickly.If most household products are advantageous, this is not the case for rider papers sold cheaper to the grocery store, adds this consumer who is easily swallowed between $ 500 to $ 800 at each of her visits which take placeevery two months.
Watch out for temptations
In addition to having to manage their purchases of large formats, the disciples of the costco must also manage the surprise temptations.At Costco, a quarter of the goods on the shelves are called "treasures".Called by the co-founder and ex-leader of Costco, James Sinegal, these are products, such as 4K televisions, bottles of Dom Pérignon champagne, jewelry, camping tents that arise in the aisles the moment of only a few weeks.Products whose consumers can hardly give the purchase to a next visit without running the risk of having missed the windfall.
"To avoid these temptations, I only head to the products which are noted on my list," says Repentignois Georges Gariépy who holds a regular card.
Twice a month, he and his spouse visit Terrebonne's warehouse to fill up on the food necessary for the preparation of their lunch boxes during the week.Soft bars, snacks, nuts, yogurts and water bottles fill their basket.Including household products and a pair of jeans for work from time to time.The couple, who lives less than ten minutes from the warehouse, also takes the opportunity to fill up on gasoline.In total, his Costco invoice remains under $ 300 per month.What is more than enough, supports Georges Gariépy, to repay his Costco subscription from the 2nd visit.