I’m thinking about working on this design… honest
Some Wall Street analysts assert that Mr. Sinegal is overly generous not only to Costco’s customers but to its workers as well.
Costco’s average pay, for example, is $17 an hour, 42 percent higher than its fiercest rival, Sam’s Club. And Costco’s health plan makes those at many other retailers look Scroogish. One analyst, Bill Dreher of Deutsche Bank, complained last year that at Costco “it’s better to be an employee or a customer than a shareholder.”
Mr. Sinegal begs to differ. He rejects Wall Street’s assumption that to succeed in discount retailing, companies must pay poorly and skimp on benefits, or must ratchet up prices to meet Wall Street’s profit demands
link via Oliver Willis
And, it hasn’t hurt the companies stock price. They keep going up.
It’s one reason why it’s a good idea to ignore financial analysts: you treat your employees right, they’ll be there during the good and bad times. You never hear anyone bitch that Starbucks gives everyone full health benefits.
*sigh* I wish we had a costco here, we’ve only got the sam’s club as our warehouse alternative, unless we head back up to Chicago.
Atleast we’ve got a meijer- great supercenter…
Interesting to know. Thanks
Wow, this is great info, thanks! I had no idea. I don’t know where the nearest Costco is, but I’ll check it out.