Costco "Considering" Oklahoma, however?

[Soonerman]

The 'central planners' disgusied as conservatives on here are disgusting. Selling wine and eyeglasses in Oklahoma is legal and the state just decideds who gets to sell them. The State needs to get out of the way, it isn't their job to decide that, it is the consumers job.

This

[janejane]

we desperately need a costco! love love love this place!

[betts]

The 'central planners' disgusied as conservatives on here are disgusting. Selling wine and eyeglasses in Oklahoma is legal and the state just decideds who gets to sell them. The State needs to get out of the way, it isn't their job to decide that, it is the consumers job.

Ah, but isn't that always the way it is? There are almost no "true" conservatives. Most of the people who call themselves conservatives want to meddle in people's lives just as much as the liberals. They simply have a different idea of how the meddling should be done.

[ou48A]

Why does that matter? Aren't you in favor of less restricted markets?

Why does it matter?

I would want to know why Costco apparently says they can’t make an acceptable profit in Oklahoma without liquor sales when others can before I ever bought Costco stock.

[ou48A]

COSTCO in 2010 achieved $825 per sf of sales which is pretty impressive for their 160,000 sf stores. Sam's was $616. As an aside Trader Joe's is estimated to be about $1750 per sf which is more than twice what Whole Foods achieves.

COSTCO philosophy is to buy a relatively few products at a low price, mark them up 14% or 15%, and sell a bunch of each. There is usually not a lot of variety nor is there much in the way of convenience, comfort or help to the shopper.

The small business owner is the preferred customer type. I remember one example I read that COSTCO had made a special purchase of Polo shirts that were priced about 40% less than normal but still relatively expensive for a shirt.

The house brand is Kirkland Signature.

To grow so big Costco has obviously done something right but from your post it sounds like they might sale higher end products.
Is there enough wealth in the OKC area to support the Costco way of doing business?

[flintysooner]

To grow so big Costco has obviously done something right but from your post it sounds like they might sale higher end products.
Is there enough wealth in the OKC area to support the Costco way of doing business?

Really Oklahoma City should be a perfect market for COSTCO because there are so many small businesses here. They're known for selling higher end or maybe better described as high quality products at significant value. Still if someone wouldn't buy a high quality item even at a discounted price then he or she is in the wrong place.

COSTCO also has a smaller prototype for a business center where they concentrate on the small business customer that is buying products to be resold.

I think wherever COSTCO goes in our area the store will do very well.

[SoonerQueen]

Wine yes, but I'll leave my eyesight to the professionals.

I think that Costco has opticians who can check your eyes if you want them to, but most people use Sam's, Costco, etc to get frames at a reduced price. It doesn't take a medical doctor to fit frames. I wouldn't ever go to an untrained person to check my eyes, but to help me pick out frames maybe. Most employees that work in the optical department at a store like that have been trained to help you pick out frames and fit them.

[bluedogok]

Wine yes, but I'll leave my eyesight to the professionals.

They are setup just like an Eye Masters, Eyemart Express, etc. An optician/ophthalmologist leases the space adjacent to the optical section. I bought my contacts at Sam's after going to my regular optician that doesn't sell contacts.

COSTCO in 2010 achieved $825 per sf of sales which is pretty impressive for their 160,000 sf stores. Sam's was $616. As an aside Trader Joe's is estimated to be about $1750 per sf which is more than twice what Whole Foods achieves.

I think what drives that is number of locations, here in Austin area we have two Costco stores, on north and one far south. From Round Rock to San Marcos there are five Sam's club locations, so they definitely divide up the market area per store a bit more.

To grow so big Costco has obviously done something right but from your post it sounds like they might sale higher end products.
Is there enough wealth in the OKC area to support the Costco way of doing business?

There isn't as much difference between Costco and Sam's Club as some make it out to be, there is quite a bit of overlap in some products like you have with any similar type of stores. There are products available at one and not the other, that is why we are members at both and we shop at both pretty evenly. There are some nicer products available at Costco but Sam's has their share of nice stuff at times as well.

I do know that if we moved back to OKC and there wasn't one there we would head to the one in Dallas every so often....kind of like we do with Braum's now and a trip to DFW or OKC. We are moving to Denver in the near future, they have them there already so it isn't anything we have to worry about.

[SoonerQueen]

When we visited the Costco store in Dallas recently, there were many similar items to Sam's, but many cool items that I wanted to purchase but couldn't because I wasn't a member. The store was much better stocked with a variety of things. I loved the look of the store. It was fun just to look through the store. I would become a member if they came here.

[Midtowner]

Why does it matter?

I would want to know why Costco apparently says they can’t make an acceptable profit in Oklahoma without liquor sales when others can before I ever bought Costco stock.

Why does it matter how they make a profit? Are you saying that liquor store owners need to be protected as opposed to everyone else?

You're starting to sound like a liberal.

[ou48A]

Why does it matter how they make a profit? Are you saying that liquor store owners need to be protected as opposed to everyone else?

You're starting to sound like a liberal.

Analyzing the Costco business model and how it delivers and captures value for the investor is part of doing due diligence. What they sale and how they sale it compared to their competitors matters a great deal. What advantage they have over their competitors matters a great deal. How long can they keep their advantage also matters.

Clearly if Costco must have liquor sales to successfully operate in Oklahoma and others don’t it matters a great deal too potential investors.

This would suggest to me that either Costco really doesn’t need liquor sales in OK or they do not operate their business as efficiently as their competitors.

I really don’t care one way or another but may be this is an issue that should be put to a state wide vote.

[Larry OKC]

The only credit card that COSTCO takes is American Express. That kind of explains the difference I think.

Sam's used to have a similar policy (know they didn't use to take Visa/MC, not sure about AmEx)

[ou48A]

Sam's used to have a similar policy (know they didn't use to take Visa/MC, not sure about AmEx)

For the first time in over 10 years bought something at Sam’s today. I tried to put my purchase on my Visa card and it was rejected.
But I was able to use another Visa card that I have set up as a debit card.

[Thunder]

Costco is similar to Sam's Club, but better. That is the general belief among the population.

So, how exactly is it possible that Costco is best at small business inventory? The only thing possible at both of these places are the food, drinks, and snacks that can be bought in bulk to resell in vending machines and cafe/snack bar. Anything else...yeah right, I just don't see how its possible. Small business owners wouldn't be able to buy something there of "wholesale" value. Just not possible. If these risky owners decide to pay retail prices at Costco, then they'd have to resell at much higher prices to turn over profits, but that means higher prices at these small businesses where customers probably will not spend money since they can buy at Walmart, other places, and online for much cheaper. So...yeah...not possible to get anything wholesale (unless through inventory reduction sale) other than the munchies.

[Bunty]

If Costco wanted to sell caskets in their stores in Oklahoma, they can't. Because Oklahoma funeral home operators believe people are in no condition to buy caskets, except from them.

[Larry OKC]

For the first time in over 10 years bought something at Sam’s today. I tried to put my purchase on my Visa card and it was rejected.
But I was able to use another Visa card that I have set up as a debit card.

I have had similar things happen at various stores (Wal-Mart, Home Depot etc). often a glitch and may even be machine (card reader) specific. Same card can be rejected as Credit then accepted as Debit or the other way around. The first time I was declined, I immediately high-tailed it over to my bank and they assured me there was nothing wrong, plenty of money in my account etc.

[Thunder]

I have had similar things happen at various stores (Wal-Mart, Home Depot etc). often a glitch and may even be machine (card reader) specific. Same card can be rejected as Credit then accepted as Debit or the other way around. The first time I was declined, I immediately high-tailed it over to my bank and they assured me there was nothing wrong, plenty of money in my account etc.

I will remember this. :-)

[Larry OKC]

Had heard the eyeglass thing before too. Wal-mart has been running commercials showing the low prices and even saw it a couple of days ago on the back page of the in-store flier. Couldn't find any small print saying "Not available in Oklahoma" as there will be on some Black Friday specials (where to sell it at the advertised price, they would be breaking the decades old 6% mandatory profit law). Asked where the glasses were at, and told that their store doesn't sell them. Asked where the closest store was and they said not in this state (per law). I respectfully asked them to throw the ads away, tear off the back sheet or put up a sign stating that was the case. They laughed. I was not amused.

[Larry OKC]

I will remember this. :-)

LOL. That was a long time ago, money long gone, and it was a relative term ("plenty" more than what I was trying to spend, in this case the total was under $10).

[Thunder]

Larry, does the crazy mandatory profit law applies to small business?

[Midtowner]

Analyzing the Costco business model and how it delivers and captures value for the investor is part of doing due diligence. What they sale and how they sale it compared to their competitors matters a great deal. What advantage they have over their competitors matters a great deal. How long can they keep their advantage also matters.

Clearly if Costco must have liquor sales to successfully operate in Oklahoma and others don’t it matters a great deal too potential investors.

This would suggest to me that either Costco really doesn’t need liquor sales in OK or they do not operate their business as efficiently as their competitors.

I really don’t care one way or another but may be this is an issue that should be put to a state wide vote.

Speculating, I would say that the high margin of liquor sales means that it's more profitable to channel limited resources to open stores outside Oklahoma than it would be to target a limited market, where a major remodel would have to take place once the laws changed.

That said, it really doesn't matter. You don't appear to be in favor of free markets at all. You'd rather have the government deciding who can sell what. Oklahoma's alcohol rules are job killing in many respects. They've kept out several grocery stores, COSTCO, and now are killing jobs in Bricktown.

[Larry OKC]

Larry, does the crazy mandatory profit law applies to small business?

It was my understanding that it applied to ALL retail and wholesale entities. The intent was to protect the small business owner from the larger dept stores (law pre-dates Wal-Mart and other "Big Box") from offering "loss leader" (items sold below cost) just to get folks in the door. Their are exceptions (such as clearance sales, damaged goods etc). There are some ways around it though. The profit doesn't have to reflect the price you actually paid for that particular item but you can use the lowest invoice you have as the basis (within a certain time period). In other words you can use an invoice showing it cost you $1 at the first of the month and even though the price doubled to $2 on your next delivery 2 weeks later, you can still legally sell the item for $1.06 rather than being forced to sell it for $2.12.

It can and still happens of course, but enforcement seems to be based on a complaint being logged against a business (usually by a competitor, citing unfair competition). If there is another vendor notices you are selling your lucky bamboo for cheaper than what he paid, you may have an issue (just be able to document everything).

[HewenttoJared]

I can promise you enforcement does happen. I've seen it. And Thunder I wouldn't call it crazy. Without it smaller businesses would be even less likely to survive.

[bluedogok]

In Texas the Costco liquor stores are privately owned leasing space from Costco much like the cell phone kiosks. There is no passage into the store from the liquor store and you do not need a Costco card to buy in the liquor store. That is because of Texas law requires "private ownership", now Texas law is different in that one person can have up to five licenses/stores. There is also another provision that allows family members to pool licenses together under one DBA name like we have with Spec's and Twin Liquors but there is still a family member name attached to each store, I think the Spec's in the Austin area are all licensed to a husband and wife which would allow them to have up to 10 stores.

The difference is the beer/wine department is part of Costco and that is what needs to be changed at a minimum in Oklahoma, I don't recall seeing either in the liquor store portion but I wasn't looking for that at the one time that I have been in there. Get rid of the 3.2 and allow (refrigerated) beer/wine to be sold in grocery stores.

[Dustin]

Welp... so much for that.

http://soonerpoll.com/poll-finds-vot...r-law-changes/