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To: Amy J who wrote (130570)	3/21/2001 10:50:45 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

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

To: Amy J who wrote (130570)	3/21/2001 7:27:40 PM
From: Jim McMannis	Respond to of 186894

RE:"I think Costco doesn't exactly carry the high-end in high-tech. With computers, it appears, they tend to carry the AMD-kind: discounted. (edit: deleted)" The carry a wide range of computers. P4s, Athlons, Durons, P-IIIs and Celerons. Pretty much consumer stuff. Who would by a computer from Costco. A lot of smart people. One reason is they have a 30 day money back, no questions asked return policy w/no restocking charge. Compare this to Best Buy, Circuit City and CompUSAs, 15 day 10% restocking fee on opened boxes. Costco also sells some peripherals at a decent price. Example: two 6 ft (AA and a AB) USB cables for $5.99. Compare that to $25-$30 at COMPusa or BestBuy... Jim