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Costco wholesale

Costco wholesale. Amanda McIntosh Tiffany Ceragoli Ryan Davis Aaron Broadsworth. a Fortune 500 company. The Start-Up. The humble beginnings of a massive enterprise. Jim Sinegal and Jeffrey Brotman opened their first Costco location in 1976 with personal savings and credit cards.

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Costco wholesale

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  1. Costcowholesale Amanda McIntosh Tiffany Ceragoli Ryan Davis Aaron Broadsworth a Fortune 500 company

  2. TheStart-Up The humble beginnings of a massive enterprise

  3. Jim Sinegal and Jeffrey Brotman opened their first Costco location in 1976 with personal savings and credit cards * The Founders of Costco

  4. Concentrate in northwest United States • 12 warehouse locations • Profits of $80 million from each location The Original Business Plan

  5. 457 locations serving 43 U.S. states and Puerto Rico • Locations in 7 other countries • Net sales of $87 billion in 2011 Current Costco Locations

  6. a happier employee leads to a better work environment which is what makes the company more profitable. Costco Philosophy

  7. A Good Business The benefits of being employed with Costco

  8. Health Care • Dental Care • Pharmacy Program • Vision Program • 401(k) Plan • Dependent Care Plan • Health Care Reimbursement Account • Care Network • Short Term Disability • Long Term Disability • Life Insurance • Employee Stock Purchase Plan • Long Term Care Insurance Benefits made available to all employees

  9. Additional Benefits Hourly workers on average are paid $20.89 Compared to Walmart's average hourly wage: $12.67 Employees receive company matching 401 (k) plan Every 400 hours worked a pay raise is implemented

  10. ACA & Costco Implications & Impact

  11. *“It's a rich plan…We think it's good business.” Costco CEO Jim Sinegal on the Affordable Care Act

  12. Changes in Deductible Cost

  13. No Cost Services As of 2013, for the first time in the company’s history, all preventative care done in network will be 100% covered.

  14. Services Medications Aspirin Vitamins Smoking cessation Contraceptives Fluoride • Wellness Exams • Mammograms • Immunizations • Health Screenings • Sterilization Medical Benefits included as of 2013

  15. Keeping Customers Happy Expanding the business to meet the needs of consumers

  16. Membership Types • Up to 6 cardholders • For business products & services • For individuals & households • Good at 590+ locations and Online! 2% Annual Reward Up to $750/year Highest Level Member Over 50 million worldwide!

  17. Renewal Rate Growth *Overall memberships continue to increase quarterly * Executive members makeup one-third of the customer base and two-thirds of the revenue! * New incentives offered to entice exec. Members hence increasing revenue growth * Focus on private-label

  18. Focus on the Base Maintain exponential customer-base growth with key focus on: Limitless connectivity thru Mobile Apps & Virtual Magazine - Industry trends suggest online growth likely to drive Costco online sales to over $370 by 2017 Focus on Private-label goods which offer competitive prices & comparable quality to the national brands – these brands account for 20% -30% of overall merchandise

  19. Success A summary of profits and income

  20. 19% increase over last quarter • $459 million in sales last reported quarter in 2013 Continual Increase in Profits

  21. Compared income flow vs. outflow

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