Amy,
re: "If this were true for high-tech products, then how come I buy my computers directly from Dell (or say, Compaq or HP online), not Costco? Again, who would buy their computer from Costco? The profile of this buyer isn't exactly the same as the high-end buyer."
Costco is a general merchandise retailer, not a specialty retailer, so their selection in each category is limited. Their product mix is designed to appeal to the general public, but with a higher end value niche. Value is the key to their merchandising approach.
You buy from Dell because you have specific needs, and you don't have to pay for things you don't want. If you happened to find the exact specifications you need at Costco, chances are you would save money. But you are a pretty sophisticated computer buyer. The general public wants a good deal without nit picking each spec, and Costco does a good job of filling that need.
I'm not by any means saying that they are the computer merchant of choice. Just that they usually offer a good product at a good price. I'm saying this from my perspective as a former vendor, I've never shopped at Costco.
Sort of a boring topic. Why don't we take it to PM if you have additional questions.
John |
