Worker Wages: Wendy's vs. Wal-Mart vs. Costco

[aGameOfThrones]

http://l2.yimg.com/bt/api/res/1.2/nAGKzTKf8SvoHtn4I9l4Cg--/YXBwaWQ9eW5ld3M7Y2g9MzczO2NyPTE7Y3c9NjIwO2R4PTA7ZH k9MDtmaT11bGNyb3A7aD0zNzM7cT04NTt3PTYyMA--/http://l.yimg.com/os/publish-images/finance/2013-08-06/ae61e67e-d778-427c-a8eb-e9d333ebba5e_130805123117-worker-pay-620xa.jpg


Can a company pay its workers well and also make money?

Many aren't quite hitting the right balance. Hundreds of dissatisfied workers at major American companies like Wal-Mart (WMT), McDonald's (MCD) and Wendy's (WEN) have joined protests nationwide in the past year demanding higher wages and better benefits.

One company that hasn't had to deal with such strikes is Costco (COST).

The no-frills warehouse chain pays its hourly workers an average of just over $20 an hour, compared to just under $13 at competitor Wal-Mart. Even President Obama praised Costco in a recent speech about helping the middle class.

The recession has been good for companies that targeted budget-minded customers. Sales at Costco have grown an average of 13% annually since 2009, while profits have risen 15%. Its stock price has more than doubled since 2009.

During the same period, discount retailer Wal-Mart's sales grew an average of 4.5% each year, profits rose 7%, and its stock price increased 70%.

Costco seems to be investing some of those profits back into its employees.

Cesar Martinez, a 37-year-old fork lift operator, has worked at a Costco in North Carolina for 19 years. He makes $22.82 an hour, gets health benefits and a pension plan. He manages to save, and doesn't worry about hospital bills for his daughter, who suffers from asthma.

"That's the reason why I've been here for so long," he said. "The company gives you a decent wage and treats you with respect and takes care of you. That's why we all give 100%."

Some experts say companies aren't able to adopt the Costco model, because they can't charge its $55 annual membership fee.

However, research shows that it pays to pay employees well, because satisfied workers are more productive and motivated, according to MIT Sloan School of Management professor Zeynep Ton, who focuses on operations management.

"How many times have you gone to a store, and the shelves are empty or the checkout line is too long, or employees are rude?," she said. "At Costco, you see a huge line that disappears in minutes."

The productivity translates into sales, she said.

According to Ton's research, sales per employee at Costco were almost double those at Sam's Club, its direct warehouse competitor owned by Wal-Mart.

http://finance.yahoo.com/news/worker-wages--wendy-s-vs--wal-mart-vs--costco-155815763.html

[specsaregood]

So the Costco guy is a fork lift operator, what do the other 2 do?

[James Madison]

So the Costco guy is a fork lift operator, what do the other 2 do?

The girl is probably a cashier. I'd guess the dude is also a cashier or a stocker. They both look pretty young, unlike the fork lift operator who is 37.

[specsaregood]

The girl is probably a cashier. I'd guess the dude is also a cashier or a stocker. They both look pretty young, unlike the fork lift operator who is 37.

IIRC, The forklist job is OSHA regulated and requires at least a modicum of training and certification. dunno why they would choose to compare employees with different jobs.

[parocks]

So the Costco guy is a fork lift operator, what do the other 2 do?

Right. Forklift operator is a skill.

[Keith and stuff]

Costco pays forklift operators more than base pay. Plus Costco has automatic raises regardless of merit. It's not a fair comparison. Also, this thread isn't related to politics.

[MelissaWV]

The girl is probably a cashier. I'd guess the dude is also a cashier or a stocker. They both look pretty young, unlike the fork lift operator who is 37.

Yep. Suspicious.


According to Ton's research, sales per employee at Costco were almost double those at Sam's Club, its direct warehouse competitor owned by Wal-Mart.

But that wasn't what they went with in the photos. They went with a fast food cashier, a WalMart (likely front area) associate, and a 37-year-old forklift operator at a warehouse setting. You can also see "promoted" under the Costco employee. There is a reason he was promoted, and usually that comes with additional pay, benefits, etc.. If you are promoted enough at WalMart, I guarantee you will make okay money. If you wind up managing that Wendy's:


$44,172 General Manager

20 Wendy's Salaries

Almost as much as their forklift operator.

Lastly, I skimmed the entire thing but are these folks even in the same economic geographic area?

The entire thing leaves much to be desired.

[MelissaWV]

Also:

Really? Cinnamon Tig(n)er?

[juleswin]

Right. Forklift operator is a skill.

A 19 year veteran for that matter. This very pro Costco article was thoroughly debunked when it was posted on the very liberal Democratic underground website. They should instead compare a cashier from all 3 stores and the difference wouldn't be that much.

[MelissaWV]

A 19 year veteran for that matter. This very pro Costco article was thoroughly debunked when it was posted on the very liberal Democratic underground website. They should instead compare a cashier from all 3 stores and the difference wouldn't be that much.

A quick search yields...


Cashier Assistant (Front End Assistant) - Hourly

73 Costco Wholesale Salaries
$11.89/hr

But of course this is a very broad average.

So while it seems Costco pays a bit more, it's not the "omg they make like triple!!!" panic that the article seems to want to promote.

[Keith and stuff]

A 19 year veteran for that matter. This very pro Costco article was thoroughly debunked when it was posted on the very liberal Democratic underground website. They should instead compare a cashier from all 3 stores and the difference wouldn't be that much.

A cashier also receives above base pay at Costco. Maybe if it was a base pay job starting out at all 3 places. Also, where I live, all 3 places offer health insurance so I'm not sure what the article was trying to push, but it wasn't fair.

[Anti Federalist]

A cashier also receives above base pay at Costco. Maybe if it was a base pay job starting out at all 3 places. Also, where I live, all 3 places offer health insurance so I'm not sure what the article was trying to push, but it wasn't fair.

What the article was doing is laying down a smoke screen, trying to acclimate people to the idea that the only long term blue collar jobs left in the country are at box stores, distributing Chinese made goods, or slinging fast food, and that to have any sort of middle class life, you had better organize and strike for higher wages.

As is the case with most of these "push pieces", from the left and the right, is that they absolutely ignore the disastrous economic, trade, tariff and monetary policies that this country has adopted that has led to the demise of the middle class.

[ObiRandKenobi]

the wendy's chick is ugly.

[MelissaWV]

What the article was doing is laying down a smoke screen, trying to acclimate people to the idea that the only long term blue collar jobs left in the country are at box stores, distributing Chinese made goods, or slinging fast food, and that to have any sort of middle class life, you had better organize and strike for higher wages.

As is the case with most of these "push pieces", from the left and the right, is that they absolutely ignore the disastrous economic, trade, tariff and monetary policies that this country has adopted that has led to the demise of the middle class.

Sadly, agreed. When I was reading through it I got the impression that people were considering these careers, which is in line with the newthink. It depresses me. These kinds of jobs used to be for those just starting out, those recovering from poverty (transitional only), and retirees who needed a part time job. You went, you made total garbage, and sometimes you had to work two of those jobs to get to whatever goal you were working towards. You didn't demand higher wages. It was a shitty job, you weren't going to be there long, and everyone knew it. Some few people did get promoted and wound up owning the place, but it was super rare. Most finished school, or went to live with family, or moved on (from fast food to retail, let's say, and then on to something higher than that, and so on).

[angelatc]

so work an wendys until you get enough experience for walmart to hire you, then get enough skills to interest Costco.

[Keith and stuff]

What the article was doing is laying down a smoke screen, trying to acclimate people to the idea that the only long term blue collar jobs left in the country are at box stores, distributing Chinese made goods, or slinging fast food, and that to have any sort of middle class life, you had better organize and strike for higher wages.

As is the case with most of these "push pieces", from the left and the right, is that they absolutely ignore the disastrous economic, trade, tariff and monetary policies that this country has adopted that has led to the demise of the middle class.

Not sure. Both Walmart and Costco are known for being not friendly to unions. Though, in places like CA, Costco does work with them. So striking isn't really an option. I don't know about fast food places like Wendy's but it wouldn't make any sense at all for fast food workers to join a union.

[XTreat]

Restaurants have a low profit margin, and fast food restaurants in particular have a large % labor costs. Apples and oranges.

[Brian4Liberty]

So the Costco guy is a fork lift operator, what do the other 2 do?

Good question. And Wendy's is an entirely different business from the other two.


The no-frills warehouse chain pays its hourly workers an average of just over $20 an hour, compared to just under $13 at competitor Wal-Mart.

Wonder how they derived the average?

[specsaregood]

Not sure. Both Walmart and Costco are known for being not friendly to unions. Though, in places like CA, Costco does work with them. So striking isn't really an option.

My union friend's family in CA who would never shop at walmart, said shopping at Costco was "ok"/allowed because they used teamsters for shipping.

[oyarde]

My experienced forklift drivers make 3 to five dollars over an entry level position .

[Warrior_of_Freedom]

A quick search yields...



But of course this is a very broad average.

So while it seems Costco pays a bit more, it's not the "omg they make like triple!!!" panic that the article seems to want to promote.

the point is the guy makes over 20 an hour because he was promoted, while the other employees in other companies are in dead-end jobs.

There's no high-paying jobs at Wendy's. What would be the equivalent of a fork-lift operator? A deep-fryer technician? Yeah..

[MelissaWV]

the point is the guy makes over 20 an hour because he was promoted, while the other employees in other companies are in dead-end jobs.

There's no high-paying jobs at Wendy's. What would be the equivalent of a fork-lift operator? A deep-fryer technician? Yeah..

I posted the equivalent. A general manager makes $44k+ on average.

[aGameOfThrones]

You should have said you are sorry by now. Shame on you for the this.~Keith and stuff

You neg rep me because I posted the article, sigh.

[liberty2897]

There's no high-paying jobs at Wendy's. What would be the equivalent of a fork-lift operator? A deep-fryer technician? Yeah..

You can upgrade your status by combining a typical low-wage food preparation job with high-tech drone deployments...


https://www.youtube.com/watch?v=P0toqRVJZw8

[Keith and stuff]

You neg rep me because I posted the article, sigh.

It was because, while you could have said sorry, you refused to do so. Please post on topic and be honest. Have you not aborigines yet? Are you serious? The article was inflammatory and posted in the wrong place, obviously. What does socialist lying have to do with politics? Of course socialists lie. Are you serious? Please stop trolling!

[MelissaWV]

Have you not aborigines yet?

What?

http://theburtonwire.com/wp-content/uploads/2013/02/australia-aborigines-460.jpg

[MRK]

I agree this is an apple's to orange comparison.

Wendy's is fast food.

Walmart is a general retail store of cheaply made products sold at general retail prices (look at cost comparisons between Walmart and Target and you'll see that Walmart makes some decent cash on its perception of being "cheaper" than elsewhere, when in reality it is not)

Costco is name-brand products in bulk. It's very easy to pop someone for $300 in revenue while they're doing a quick pick-up at Costco because they perceive that that $300 of goods is going to prepare them for the apocalypse when in reality they're just getting a couple bundles of name-brand crap. On top of that you have to pay for membership. The income of the people who go to Costco is also a lot higher so they are in general very big spenders. Costco gets affiliate money for advertising for things from cars to boats to bookings for travel. They also have their own pharmacy and optometrist, in addition to all the other things you'd find at any supermarket. To top it all off, their inventory is stacked to the ceiling full of stuff and have somehow allowed their customers accept walking around a big warehouse.

So I would have to say that Costco has a hell of a business model, but it is a niche market because their market is a small slice of the whole because their revenue is mainly from high-income consumers.

Unsurprisingly, this means that they can pay their employees higher wages.

Whereas Wendy's is catering to the complete opposite end of the income spectrum, catering to the manual laboring illegal immigrant making $5 an hour because they have 99 cent chicken nuggets.

[Zippyjuan]

So the Costco guy is a fork lift operator, what do the other 2 do?

Costco pays all of their employees well. Even stockers and checkers can earn up to almost $20 an hour plus benefits. http://www.payscale.com/research/US/Employer=Costco_Wholesale_Company/Hourly_Rate -starting at $10.50 an hour and topping out at $19.30 currently.

It is valid to compare them to Sam's Club's wages which is WalMart's version of Costco. There, cashiers make $8- 10 an hour. http://www.glassdoor.com/Salary/Sam-s-Club-Salaries-E7811.htm

[angelatc]

the point is the guy makes over 20 an hour because he was promoted, while the other employees in other companies are in dead-end jobs.

There's no high-paying jobs at Wendy's. What would be the equivalent of a fork-lift operator? A deep-fryer technician? Yeah..

There is no such thing as a dead end job.

[angelatc]

I posted the equivalent. A general manager makes $44k+ on average.

The CEO of McDonalds started as a crew member.

[pcosmar]

. dunno why they would choose to compare employees with different jobs.

You dunno ?

I could hazard a guess.

[Zippyjuan]

A more detailed comaprison between Costco and Sams Club:
http://hbr.org/2006/12/the-high-cost-of-low-wages/ar/1

Consider Costco and Wal-Mart’s Sam’s Club, which compete fiercely on low-price merchandise. Among warehouse retailers, Costco—with 338 stores and 67,600 full-time employees in the United States—is number one, accounting for about 50% of the market. Sam’s Club—with 551 stores and 110,200 employees in the United States—is number two, with about 40% of the market.

Though the businesses are direct competitors and quite similar overall, a remarkable disparity shows up in their wage and benefits structures. The average wage at Costco is $17 an hour. Wal-Mart does not break out the pay of its Sam’s Club workers, but a full-time worker at Wal-Mart makes $10.11 an hour on average, and a variety of sources suggest that Sam’s Club’s pay scale is similar to Wal-Mart’s. A 2005 New York Times article by Steven Greenhouse reported that at $17 an hour, Costco’s average pay is 72% higher than Sam’s Club’s ($9.86 an hour). Interviews that a colleague and I conducted with a dozen Sam’s Club employees in San Francisco and Denver put the average hourly wage at about $10. And a 2004 BusinessWeek article by Stanley Holmes and Wendy Zellner estimated Sam’s Club’s average hourly wage at $11.52.

On the benefits side, 82% of Costco employees have health-insurance coverage, compared with less than half at Wal-Mart. And Costco workers pay just 8% of their health premiums, whereas Wal-Mart workers pay 33% of theirs. Ninety-one percent of Costco’s employees are covered by retirement plans, with the company contributing an annual average of $1,330 per employee, while 64 percent of employees at Sam’s Club are covered, with the company contributing an annual average of $747 per employee.

Costco’s practices are clearly more expensive, but they have an offsetting cost-containment effect: Turnover is unusually low, at 17% overall and just 6% after one year’s employment. In contrast, turnover at Wal-Mart is 44% a year, close to the industry average. In skilled and semi-skilled jobs, the fully loaded cost of replacing a worker who leaves (excluding lost productivity) is typically 1.5 to 2.5 times the worker’s annual salary. To be conservative, let’s assume that the total cost of replacing an hourly employee at Costco or Sam’s Club is only 60% of his or her annual salary. If a Costco employee quits, the cost of replacing him or her is therefore $21,216. If a Sam’s Club employee leaves, the cost is $12,617. At first glance, it may seem that the low-wage approach at Sam’s Club would result in lower turnover costs. But if its turnover rate is the same as Wal-Mart’s, Sam’s Club loses more than twice as many people as Costco does: 44% versus 17%. By this calculation, the total annual cost to Costco of employee churn is $244 million, whereas the total annual cost to Sam’s Club is $612 million. That’s $5,274 per Sam’s Club employee, versus $3,628 per Costco employee.

In return for its generous wages and benefits, Costco gets one of the most loyal and productive workforces in all of retailing, and, probably not coincidentally, the lowest shrinkage (employee theft) figures in the industry. While Sam’s Club and Costco generated $37 billion and $43 billion, respectively, in U.S. sales last year, Costco did it with 38% fewer employees—admittedly, in part by selling to higher-income shoppers and offering more high-end goods. As a result, Costco generated $21,805 in U.S. operating profit per hourly employee, compared with $11,615 at Sam’s Club. Costco’s stable, productive workforce more than offsets its higher costs.

[Anti Federalist]

Have you not aborigines yet?

What?

http://theburtonwire.com/wp-content/uploads/2013/02/australia-aborigines-460.jpg

LoL, me too.

Wut?

http://graphics8.nytimes.com/images/2008/02/13/world/13aborig.600.1.jpg

[pcosmar]

There's no high-paying jobs at Wendy's. What would be the equivalent of a fork-lift operator? A deep-fryer technician? Yeah..

A warehouse forklift operator. Wendy's has warehouses. as do MacDs and every other fast food chain.

[Anti Federalist]

A more detailed comaprison between Costco and Sams Club:
http://hbr.org/2006/12/the-high-cost-of-low-wages/ar/1

You Get What You Pay For.

and...

Cheap Is Not Always Best.

Who'dathunkit?

[pcosmar]

Costco pays forklift operators more than base pay. Plus Costco has automatic raises regardless of merit. It's not a fair comparison. Also, this thread isn't related to politics.

I would have to disagree.

Promotion of Unions is quite political.

[MRK]

A more detailed comaprison between Costco and Sams Club:
http://hbr.org/2006/12/the-high-cost-of-low-wages/ar/1

"Costco’s stable, productive workforce more than offsets its higher costs."

If the truth were that by only giving more pay and benefits to its employees, Sam's Club could make more money, then they would of course do it. However, Sam's Club realizes that their market is not CostCo's market. As the article even states, CostCo goes for and dominates the higher-income market. As far as Sam's Club calculates, they would not have the same chance at competing in this market as Costco does. After all, Sam's Club does have the stigma that you're shopping at Walmart, due to being a subsidiary of Walmart. What upper-middle class person wants to have anything to do with Walmart?

I maintain that Costco pays more because it's earning more. I am certain that Sam's Club would do the same if it could only win the consumer's trust in that income and demographic bracket.

[Keith and stuff]

I would have to disagree.

Promotion of Unions is quite political.

Did you mention unions because it is well known that most Costco workers have nothing to due with unions and Costco is known for that? Otherwise, what?

[Zippyjuan]

"Costco’s stable, productive workforce more than offsets its higher costs."

If the truth were that by only giving more pay and benefits to its employees, Sam's Club could make more money, then they would of course do it. However, Sam's Club realizes that their market is not CostCo's market. As the article even states, CostCo goes for and dominates the higher-income market. As far as Sam's Club calculates, they would not have the same chance at competing in this market as Costco does. After all, Sam's Club does have the stigma that you're shopping at Walmart, due to being a subsidiary of Walmart. What upper-middle class person wants to have anything to do with Walmart?

I maintain that Costco pays more because it's earning more. I am certain that Sam's Club would do the same if it could only win the consumer's trust in that income and demographic bracket.

Actually they both generated similar revenues.

While Sam’s Club and Costco generated $37 billion and $43 billion, respectively, in U.S. sales last year,

[Keith and stuff]

Actually they both generated similar revenues.

Ho does revenue even come close to relating to this? Is there something you aren't telling us?

[oyarde]

I have never been in a Costco, but from what I have seen @ Sam's , there are at least two local grocers that have better quality and price , no membership fee.

[pcosmar]

Did you mention unions because it is well known that most Costco workers have nothing to due with unions and Costco is known for that? Otherwise, what?

Nope,, I not nothing of Costco,, never been in one and don't have one near me.

I mentioned that because of a push at (some)Walmart and others for Unions.

I suspect that was where this was going and the obvious deception in the article.

[MRK]

Actually they both generated similar revenues.

Interesting. Although without more context and balance sheet information, I am hesitant to comment on this similarity.

My conviction is that they are paying what they are paying in order to maximize their profits for their target demographic and income market.

I could also accept that they are paying those wages to improve public perception of their company and brand. The benefits to this go beyond that, however: having a positive public perception of paying a high wage is useful when trying to convince towns to let them build new CostCos there. A lot of towns will not approve building permits for Walmarts due to the stigma. Perhaps the town boards would however consider a Costco due to its positive perception of positive economic impact on the area. This is of course another benefit to paying a higher wage that results in higher economic gains in the long run. Walmart/Sam's Club would love to do this as well, but I maintain that their target market doesn't have the kind of money to give them to allow for that.

[Keith and stuff]

Nope,, I not nothing of Costco,, never been in one and don't have one near me.

I mentioned that because of a push at (some)Walmart and others for Unions.

I suspect that was where this was going and the obvious deception in the article.
It would be nuts for people to push an anti union company to push unions but it is possible.

[oyarde]

Interesting. I have a hard time putting that in context of anything though. My position is that they are paying what they are paying in order to maximize their profits for their target demographic and income market. I could also accept that they are paying those wages simply to make themselves feel good that they are employing people at a fair wage., or alternatively, to convince towns to let them build new CostCos there. A lot of towns will not approve building permits for Walmarts due to the stigma. Perhaps they would reconsider a Costco due to its positive perception. This is of course another benefit to paying a higher wage that results in higher economic gains.

I could see which one a town would prefer ...

[angelatc]

A more detailed comaprison between Costco and Sams Club:
http://hbr.org/2006/12/the-high-cost-of-low-wages/ar/1

liberal alert why didnt you highlight this sentence


Costco did it with 38% fewer employees—admittedly, in part by selling to higher-income shoppers and offering more high-end goods.

apparently theres a high cost to high wages, too.

[DamianTV]

...

apparently theres a high cost to high wages, too.

So people that work at Gas Stations should be better off since the price of gas has only increased 350% in the last decade...

/pokes fun

[TonySutton]

The one thing you have to remember even when comparing Costco to Sams club. Costco has just over 400 stores in the US with about 1/4 of them in California. The cost of living in California is high so it is expected they would pay their employees more. I would prefer to see a comparison of stores in the same states but I doubt it would be possible to get the data.

[Brian4Liberty]

You Get What You Pay For.

and...

Cheap Is Not Always Best.

Who'dathunkit?

Agree. And on the other hand, expensive is not always best either. Since the introduction of the theory of evolution to humanity, it has been misapplied. A process that takes millions of years has been applied to real time situations. "Lowest price, best quality wins" in a survival of the fittest fantasy about economics. Far from true. So many other factors.

There was a thread about toilets the other day. I purchased a toilet that was a) the least expensive, b) very high manufacturing quality, c) fewer moving parts, d) the best flushing toilet I have ever seen, and e) used the least amount of water of all toilets (1.2 gal/flush). It was discontinued.


Nope,, I not nothing of Costco,, never been in one and don't have one near me.

I mentioned that because of a push at (some)Walmart and others for Unions.

I suspect that was where this was going and the obvious deception in the article.


http://www.youtube.com/watch?v=YTeu4EHFX0I


The one thing you have to remember even when comparing Costco to Sams club. Costco has just over 400 stores in the US with about 1/4 of them in California. The cost of living in California is high so it is expected they would pay their employees more. I would prefer to see a comparison of stores in the same states but I doubt it would be possible to get the data.

That was what I was theorizing when they talked about "average" wages. Lies, damned lies, and statistics.

[torchbearer]

Actually they both generated similar revenues.

with similar expenses?

[amy31416]

Never been to a Costco--is it worth a trip?

[Zippyjuan]

Even at lower wages, labor costs are higher at Walmart due to their much higher turnover (the cost of replacing employees):

Costco’s practices are clearly more expensive, but they have an offsetting cost-containment effect: Turnover is unusually low, at 17% overall and just 6% after one year’s employment. In contrast, turnover at Wal-Mart is 44% a year, close to the industry average. In skilled and semi-skilled jobs, the fully loaded cost of replacing a worker who leaves (excluding lost productivity) is typically 1.5 to 2.5 times the worker’s annual salary. To be conservative, let’s assume that the total cost of replacing an hourly employee at Costco or Sam’s Club is only 60% of his or her annual salary. If a Costco employee quits, the cost of replacing him or her is therefore $21,216. If a Sam’s Club employee leaves, the cost is $12,617. At first glance, it may seem that the low-wage approach at Sam’s Club would result in lower turnover costs. But if its turnover rate is the same as Wal-Mart’s, Sam’s Club loses more than twice as many people as Costco does: 44% versus 17%. By this calculation, the total annual cost to Costco of employee churn is $244 million, whereas the total annual cost to Sam’s Club is $612 million. That’s $5,274 per Sam’s Club employee, versus $3,628 per Costco employee.

[pcosmar]

Did you mention unions because it is well known that most Costco workers have nothing to due with unions and Costco is known for that? Otherwise, what?

As I said (in another post) I didn't know anything about Costco.

but I can look.

http://www.teamster.org/content/costco-workers-stand-together

Did you know that the Teamsters represent more than 15,000 Costco workers? These workers have had a say in the terms and conditions

of their employment for more than 20 years!

Recently, more than 3,000 Costco workers in 16 locations in New York, New Jersey, Maryland and Virginia voted to retain their union membership by an overwhelming 77.5% margin!

This site will keep you up to date on the Teamsters' Costco-related activities and organizing efforts.

Welcome from the Director of the Teamsters Costco Unity Committee

http://en.wikipedia.org/wiki/Costco

While some former Price Club locations in California and the northeastern United States are staffed by Teamsters, the majority of Costco locations are not unionized although there seems to be a move in 2012 to unionize some locations in Canada

Costco has nothing to do with Unions. Hmm
good to know,, thanks for your help.

I knew nothing about it,, now I know a little more.

[Brian4Liberty]

Never been to a Costco--is it worth a trip?

I like them. You need to be smart about purchases. They are not always the lowest price. Their butcher shop and meats are some of the best. They are good for gasoline too. Depending on your local alcohol laws, they could have a big selection of that too.

You have to buy membership there. But if you get their AMEX credit card, it will give you cash back on purchases, especially good for bigger purchases like TVs.

[torchbearer]

Even at lower wages, labor costs are higher at Walmart due to their much higher turnover (the cost of replacing employees):

if they have this data, the board could direct its policies to increase pay to see if it lowers overall expenditures by reducing training cost.

[jjdoyle]

Never been to a Costco--is it worth a trip?

We have one close by, but don't find it worth the membership. We have some friends with a membership, and they don't go very often.

As for the comparison here, I agree with what pcosmar said,


A warehouse forklift operator. Wendy's has warehouses. as do MacDs and every other fast food chain.

shouldn't they compare same type of worker pay across all the companies to actually be fair and let this make sense?

[MelissaWV]

Never been to a Costco--is it worth a trip?

In my opinion, no. The items you're most likely to want to buy in bulk (read: toddler/baby -related items) are not going to be worth the membership fee, and you would do better with Target and coupons/discounts, or with a lot of grocery stores or pharmacies and their reward programs. The other things at Costco are gadgets and huge frozen food caches, cheap clothing (Walmart sweats, etc.), and a few other random things. You have to weigh it all against the fee and just how much you really are going to shop.

[Keith and stuff]

Never been to a Costco--is it worth a trip?

I find the store to look nicer on the inside. The workers seem more helpful. The stuff seems of higher quality but more expense. The shoppers are better dressed. If you Re gonna do a wholesale club, I recommend Costco over BJ's or Sam's Club. If you aren't gonna do the wholesale club thing, you're good.

Also, if you shop for a family and are a lazy shopper, I recommend them. If you are single or put a lot of effort into using coupons or finding great deals, you won't save at Costco.

Well below average costs on meat, lots of clothes, wine, frozen food, glasses, contacts, video games, console bundles, tires and some other stuff. But not the absolute lowest prices. It is also a great way to eat for free when the sampling is happening. But the food for sale at the food court is also below average in cost.

[oyarde]

Never been to a Costco--is it worth a trip?

Wish I knew , Walmart and Sams club suck , I can get better meat cheaper at one local grocer, better and cheaper canned goods at another.In and out much easier, quicker service , easier parking.

[oyarde]

Actually , no place with a membership fee would be worth it to me.

[oyarde]

Wendy's should just bow to the commie masters :) , pay everyone $25 an hour , move burger prices to $13.99 ea and go out of business next week , what is wrong with them ? LOL

[Keith and stuff]

Wendy's should just bow to the commie masters :) , pay everyone $25 an hour , move burger prices to $13.99 ea and go out of business next week , what is wrong with them ? LOL

The food court prices are perhaps better at Costco than Wendy's, even if Wendy's pays its workers half as much.

[MRK]

The food court prices are perhaps better at Costco than Wendy's, even if Wendy's pays its workers half as much.

Of course. Low food prices give you a reason to always go to Costco. If you'll notice, you have to go through the retail section of store first before you can get to the cafeteria when you go to Costco. Well you might not have to, but that's the direction they shepherd you towards.

If you go to Costco to get food, you'll probably check out all the new stuff they have to offer. And more than likely, you'll buy something you find. I doubt there are many people who drive out to Costco (which is usually in an area slightly less convenient to reach than a fast food place) just for a $2 slice of pizza. It's the fun shopping experience plus the bonus of having a cheap food court even if you dont find anything you like. It's an excuse to innocently shop.

[fr33]

I haven't worked at big box stores but if I wanted to rise quickly towards that 40K salary, I'd probably choose the fast food place. Not saying that I advise it as a career but if you've got a couple years before choosing a real profession...

I started out as a cook at a Grandy's (chicken place) and quickly was promoted in 2 years to manager just for doing what was expected. I also watched most of my coworkers quit soon after being hired. The turnover rate at those places is incredibly high.

[MRK]

Never been to a Costco--is it worth a trip?

I would say no, only because I'm not sure why anyone would shop anywhere else than online unless they needed something right away. The price difference is staggering. Not to mention, it saves a lot of time and you have a much better selection. Return policies are liberal and you can get free shipping when you buy enough at one time. Even if you don't get free cheaping it's still cheaper for most items.

[Keith and stuff]

The food court is right up front and easy to get to at the Costcos I've been to. The bakery, deli and meat department (all with good prices) were in the back.

[Keith and stuff]

I would say no, only because I'm not sure why anyone would shop anywhere else than online unless they needed something right away. The price difference is staggering. Not to mention, it saves a lot of time and you have a much better selection. Return policies are liberal and you can get free shipping when you buy enough at one time. Even if you don't get free cheaping it's still cheaper for most items.

Dollar Tree is cheaper on a lot of items than online. Same with Market Basket (though that is only in NH, Me and Ma) and ALDI and Save-A-Lot.

[oyarde]

The food court prices are perhaps better at Costco than Wendy's, even if Wendy's pays its workers half as much.

That would be the lure , I am sure the over priced, pd membership Sams club would have a cheap hot dog & drink as well:)All part of the game .If you ever go in the grocery business , I can teach it all to you in exchange for 15 cases of beer , will will drink them :)

[oyarde]

Dollar Tree is cheaper on a lot of items than online. Same with Market Basket (though that is only in NH, Me and Ma) and ALDI and Save-A-Lot.

Dollar tree , Dollar Store , Aldi , and my local grocer

[oyarde]

The food court is right up front and easy to get to at the Costcos I've been to. The bakery, deli and meat department (all with good prices) were in the back.

They want you to stop there on the way out.

[MRK]

Dollar Tree is cheaper on a lot of items than online. Same with Market Basket (though that is only in NH, Me and Ma) and ALDI and Save-A-Lot.

that is certainly true for heavier low-priced goods. there are many things whose price to ship as a single unit makes them cheaper when found in stores. for example it goes without saying that a 24-case of water bottles is going to be cheaperat a store just about anywhere than if you had it mailed to you.

[amy31416]

I would say no, only because I'm not sure why anyone would shop anywhere else than online unless they needed something right away. The price difference is staggering. Not to mention, it saves a lot of time and you have a much better selection. Return policies are liberal and you can get free shipping when you buy enough at one time. Even if you don't get free cheaping it's still cheaper for most items.

Any sources other than Amazon?

Strangely, there are ingredients for dishes that I haven't even been able to find online (last I checked anyways.) Prime examples: tiger lily stems and decent black fungus.

[angelatc]

Any sources other than Amazon?

Strangely, there are ingredients for dishes that I haven't even been able to find online (last I checked anyways.) Prime examples: tiger lily stems and decent black fungus.

http://ths.gardenweb.com/forums/load/cooking/msg050044236855.html

I have Tiger Lilies in my yard too. Not ready to thin them out yet, or I'd send you some.

Decent black fungus - wood ears?

When we lived in Illinois, there was a Motorola plant nearby, so there was a big Asian community there too. Chinese markets where some of the cashiers didn't even speak English. I bet they'd have 'em.

[amy31416]

http://ths.gardenweb.com/forums/load/cooking/msg050044236855.html

I have Tiger Lilies in my yard too. Not ready to thin them out yet, or I'd send you some.

Decent black fungus - wood ears?

When we lived in Illinois, there was a Motorola plant nearby, so there was a big Asian community there too. Chinese markets where some of the cashiers didn't even speak English. I bet they'd have 'em.

That's the way I'd get this stuff when I lived on the East coast--just go to NYC and head to Chinatown, I'd get a giant tin full of white pepper, enough dried weird stuff to last me forever, and it was all dirt cheap.

I should be able to get my own tiger lily stems next year, since I planted a bunch. I'm just all out-of-sorts since there's no ethnic stores anywhere around and my car keeps being a pain in the ass, so I want to limit road trips. Wood ear mushrooms are similar to black fungus (cloud ear), and will do in a pinch--can't find those here either, but could probably find online.

No Italian stuff either, like capicola or good cheeses.

Admittedly, I haven't tried looking these up again in the last 6 or so months. Guess I just wanted to complain. :p

[BlackTerrel]

However, research shows that it pays to pay employees well, because satisfied workers are more productive and motivated, according to MIT Sloan School of Management professor Zeynep Ton, who focuses on operations management.


Yeah no shit. The question is: what is the ROI.

I have no doubt that if the companies thought they would make more money by paying employees more then they would pay them more.

[DamianTV]

I went to In and Out Burger a couple days ago. The place was packed. Right across the street from them was a Burger King. There was not a single customer at Burger King. Quality of Product has a lot to do with whether or not people are going to come in and give the business their money. And as I understand it (not verified), people who work at In and Out get paid a lot better than they pay at Burger King. With that much business, they can afford to pay their employees an almost livable wage, but if no one comes in because the food is so bad, all they can pay is minimum wage without going out of business.

[angelatc]

I went to In and Out Burger a couple days ago. The place was packed. Right across the street from them was a Burger King. There was not a single customer at Burger King. Quality of Product has a lot to do with whether or not people are going to come in and give the business their money. And as I understand it (not verified), people who work at In and Out get paid a lot better than they pay at Burger King. With that much business, they can afford to pay their employees an almost livable wage, but if no one comes in because the food is so bad, all they can pay is minimum wage without going out of business.

Stop with the livable wage bullshit! Fast food employees aren't supposed to make a "livable wage." They're supposed to be high school students, retirees, homemakers with kids in school. It isn't a career.

[angelatc]

Yeah no shit. The question is: what is the ROI.

I have no doubt that if the companies thought they would make more money by paying employees more then they would pay them more.

WalMart knows far more about the costs of everything than anybody else. If they could save a nickel by paying someone .04, they would. It's hysterical to watch the career academics spout about how things should be, and horrifying to watch people buy into their crap.

[DamianTV]

Stop with the livable wage bullshit! Fast food employees aren't supposed to make a "livable wage." They're supposed to be high school students, retirees, homemakers with kids in school. It isn't a career.

Yeah, I agree, but there arent many other non fast food non Walmart jobs around here. Seems like two thirds of what comes up is minimum wage part time and / or 1099 positions. We have a ton of casinos here, and most of the casinos pay minimum wage as well.

[angelatc]

Yeah, I agree, but there arent many other non fast food non Walmart jobs around here. Seems like two thirds of what comes up is minimum wage part time and / or 1099 positions. We have a ton of casinos here, and most of the casinos pay minimum wage as well.

That means nothing!

[jjdoyle]

Is anybody here looking for a job, that can and is willing to relocate? If so, I can point you in the right direction now.

Assuming 2 things:
1) Your willing to do harder work, in HEAT and cold and rain.
2) You can do that work.

If you can do those things, the pay is absolutely insane. INSANE. No college or even high school graduation necessary. BUT, you must be willing to relocate, at the very least for training.

[fr33]

Is anybody here looking for a job, that can and is willing to relocate? If so, I can point you in the right direction now.

Assuming 2 things:
1) Your willing to do harder work, in HEAT and cold and rain.
2) You can do that work.

If you can do those things, the pay is absolutely insane. INSANE. No college or even high school graduation necessary. BUT, you must be willing to relocate, at the very least for training.

+rep because I can empathize with it. I've made a similar post before and only 1 person messaged me about it.

[eduardo89]

The one thing you have to remember even when comparing Costco to Sams club. Costco has just over 400 stores in the US with about 1/4 of them in California. The cost of living in California is high so it is expected they would pay their employees more. I would prefer to see a comparison of stores in the same states but I doubt it would be possible to get the data.

California also has an $8 minimum wage, with some places being higher such as $10.55 in San Francisco and $10 in San Jose.

[oyarde]

That's the way I'd get this stuff when I lived on the East coast--just go to NYC and head to Chinatown, I'd get a giant tin full of white pepper, enough dried weird stuff to last me forever, and it was all dirt cheap.

I should be able to get my own tiger lily stems next year, since I planted a bunch. I'm just all out-of-sorts since there's no ethnic stores anywhere around and my car keeps being a pain in the ass, so I want to limit road trips. Wood ear mushrooms are similar to black fungus (cloud ear), and will do in a pinch--can't find those here either, but could probably find online.

No Italian stuff either, like capicola or good cheeses.

Admittedly, I haven't tried looking these up again in the last 6 or so months. Guess I just wanted to complain. :p

Michigan cheese places phone #'s , Area code 616 ; 242 -9880 , 243 - 5970 , 432 -3487 ,863 - 8330 , Area Code , 231 , 728 -3000, 798 -4371 , Area code 989 , 352-7779.

[oyarde]

That's the way I'd get this stuff when I lived on the East coast--just go to NYC and head to Chinatown, I'd get a giant tin full of white pepper, enough dried weird stuff to last me forever, and it was all dirt cheap.

I should be able to get my own tiger lily stems next year, since I planted a bunch. I'm just all out-of-sorts since there's no ethnic stores anywhere around and my car keeps being a pain in the ass, so I want to limit road trips. Wood ear mushrooms are similar to black fungus (cloud ear), and will do in a pinch--can't find those here either, but could probably find online.

No Italian stuff either, like capicola or good cheeses.

Admittedly, I haven't tried looking these up again in the last 6 or so months. Guess I just wanted to complain. :pSee ifyou can find aVietnamese food supplierin the phonebook , they would at least have dried black fungus and wood ear , as it is common in the spring roll

.