How does Costco work and how you can sell to them?

Presenting one face, and the truth of the internal brand are a big part of today's discussion. Some of the highlights include where Dave brings up, "With Costco, obviously, very limited selection compared to a grocery store which will have tens of thousands of items in it. It's a direct ship model, there's no distributors and they have a very small sort of 10% to 14% margin, very straightforward with vendors. So it's a very different model. And it seems like their mantra has always been."

Dave's guest, Jeremy Smith, CEO of Launchpad gets right to it. "I think you ask a few vendors and no, they'll debate you on how straightforward they really are. They like to think they are, but it's like I always say, Costco will lay out to a broker or to a brand, all the rules, because they have all these rules you have to read. And then you go in and see the Kirkland Signature items which violate 70% of the rules. So just because it's something as simple as a MasterCard, which is supposed to have at least an inch and a half lip on it, that's supposed to be a strict policy and certain buyers really enforced it. But on the KS items, it's all over the place."

Learn more and get some myths dispelled in this episode of The H Spot.

 

About Jeremy:

After more than 35 years in strategic sales, branding and marketing Jeremy’s senior management and graphic arts resume is a salute to the country’s most iconic brands. Think Apple, Chobani, Krave Jerky, Bob’s Red Mill and popchips. Prior to Launchpad, as co-founder of Level One, his relationships with buyers, marketers, strategists, venture capital firms and designers, presents enviable connections in the food industry. Jeremy was named to Forbes and Circle Up’s 2017 Top Catalysts Dealmakers and Influencers in the Consumer Industry.