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Apple and Costco Officially Parting Ways

RawBert said:
Apple's stuff have fixed prices. Not a good fit for Costco.
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Sam's Club is a competitor to Costco though, and they've got a huge supply of Apple products. So I don't see how that logic works here. Something else had to have happened here.

GLS said:
Apple needed Costco far, far less than Costco needs Apple.
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Huh? I HIGHLY doubt Costco was a big driving force behind Apple's huge success over the past decade.
 
zim said:
Costco.. eh. Never loved the idea of having to pay a membership just to shop. No Costcos around here... no one I know has a membership... now if this was Target or another retail chain then it would be a bigger issue.
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I completely undertand what you're saying, but I do have to say with Costco's rewards our membership is usually free. Most everyone around where I live has memberships because they are in a convenient location, and generally have good prices etc.
 
MacRumors said:
Apple's firm hold over pricing for its products and the deep discount pricing of warehouse clubs such as Costco have been somewhat at odds over the years, with the opposing sides reaching a middle ground of slight discounts on Apple products appearing at the club chains.
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How is this legal? Isn't this price fixing?

As long as Costco buys the product from Apple at a set price, they (Costco) should be able to sell it at whatever discount they want and take a smaller profit if they choose to.
 
Its a shame. I hate Sam's and Walmart. They pay minimum wage and have exported more jobs to china than any other company. Why the US economy stinks is a lack of middle class paying jobs and Walmart had a great deal to do with that. I certainly won't be spending money at either of those places.

Too bad Apple has chosen to do business with Walmart instead of Costco. Makes you think that Apple cares little for the social impacts of selling its products...
 
Since they are both such huge "lefty" companies , i'm surprised they couldn't work something out.
Walmart is about nothing but price. The brand and quality differences in the tech merchandise stocked between a Costco and a Sam's Club is huge. Apple no longer selling at Costco is significant.
 
Mad Mac said:
How is this legal? Isn't this price fixing?

As long as Costco buys the product from Apple at a set price, they (Costco) should be able to sell it at whatever discount they want and take a smaller profit if they choose to.
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No. Research price fixing.

Price fixing is a practice in which the prices for goods and services are manipulated in a way which is designed to benefit specific companies or individuals. In a simple example of price fixing, two rival gas stations could meet and decide to offer their gas at the same price, creating an artificially high price for gasoline which consumers would be forced to pay through lack of choice
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http://www.wisegeek.com/what-is-price-fixing.htm
 
Kaibelf said:
You could also buy it at an Apple store, Best Buy, or Apple.com, all three of which have better shopper demographics than CostCo (depending on the BestBuy's location). Also, Apple's direct service has been the industry's envy for a while.
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Disagree about Best Buy. Except maybe in 'Barry' stores.
('Barry' is their buzzword for a particular wealthy, mature male demographic.)

Kaibelf said:
Furthermore, I would never call CostCo's shoppers anything special, but to label everyone else "unwashed masses" is both offensive and stupid. Considering CostCo, mostly, is in rural areas, you could just call those masses you dislike minorities like everyone else. Finally, please stop pretending that that warehouse club is anything but a hangar of merchandise for poor white trash. CostCo is not "high end" and never was.
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Did they send a representative to punch you in the eye or something?
You're wrong about them.

zim said:
Costco.. eh. Never loved the idea of having to pay a membership just to shop. No Costcos around here... no one I know has a membership... now if this was Target or another retail chain then it would be a bigger issue.
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Depending on your expenses, the membership easily pays for itself.
 
notjustjay said:
I've always paid tax... 13%... on everything... :confused:
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Ouch. Thankfully, Amazon and most retailers do not charge tax where I live. Its like an automatic 8% discount for me.

davidgrimm said:
Its a shame. I hate Sam's and Walmart. They pay minimum wage and have exported more jobs to china than any other company. Why the US economy stinks is a lack of middle class paying jobs and Walmart had a great deal to do with that. I certainly won't be spending money at either of those places.

Too bad Apple has chosen to do business with Walmart instead of Costco. Makes you think that Apple cares little for the social impacts of selling its products...
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Funny that you lambast Wal-Mart, yet fail to mention all the US jobs that Apple cut in is production shift to China.

If you think that Apple Consumer Electronics give a flip about the 'social impact' of their products, you have been at the Kool-Aid pitcher too long. Apple cares about one thing....MONEY. Not saying that is a bad thing, its just the way it is. Everything else, like their environmental impact score card is just tripe to get the gullible to think that they somehow care.
 
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balamw said:
Me too. Any other legitimate sources of iTunes credit at even a slight discount?

B
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If you can pay in coins (!), CoinStar machines regularly have promos giving $50 iTunes credits for $40 in coins.
 
amazing, Microsoft hate comes up

roosta said:
was at costco yesterday and noticed the ipods and itunes gift cards were gone.

another victory for microsoft.
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HLdan said:
Exactly, now Microsoft can cop another sale of Windows 7 that comes preinstalled on a $199 laptop. ;)
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Amazing that a story about a retailer abandoning Apple turns into a "victory for Microsoft" rant - especially since the Fruit Company products were music players and media gift cards.

Some folks just have to have a bogeyman, whether or not there's any basis in reality. :rolleyes:
 
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balamw said:
Me too. Any other legitimate sources of iTunes credit at even a slight discount?

B
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Safeway here in the Bay Area is selling four $10 Itunes gift cards for $36.


davidgrimm said:
Its a shame. I hate Sam's and Walmart. They pay minimum wage and have exported more jobs to china than any other company.
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Full of Win said:
Funny that you lambast Wal-Mart, yet fail to mention all the US jobs that Apple cut in is production shift to China.
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I was going to comment, but Full of Win hit this nail on the head!


Full of Win said:
Ouch. Thankfully, Amazon and most retailers do not charge tax where I live. Its like an automatic 8% discount for me.
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A legal discount?

In CA, one is required to voluntarily pay CA sales taxes on such out-of-state non-taxed items.
 
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This sucks!

I live in the Seattle area. I really liked the fact that non Microsoft products had such a huge presence just inside the doors at Costco. Oh well. All good things must come to an end.
 
Do the math

iStig said:
That's the entire reason behind Costco and Apple splitting. Costco has a 14% maximum mark-up policy on every item in the store. It would seem apparent that Costco wanted to sell the iPad but for a lower price than Apple would allow.
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I was unaware of the Costco 14% maximum markup. Is there a link or source I could research or verify this at?

Also, if Costco has a 14% markup, and Apple effectively has a mandatory retail price, all you need to do is have Apple sell the iPads to Costco for:
Price Costco Pays = (Retail Price) / 1.14

Then,
Price Costco sells for = Price Costco Pays * 1.14

and you've satisfied both Apple and Costco.
 
PatrickCocoa said:
I was unaware of the Costco 14% maximum markup. Is there a link or source I could research or verify this at?

Also, if Costco has a 14% markup, and Apple effectively has a mandatory retail price, all you need to do is have Apple sell the iPads to Costco for:
Price Costco Pays = (Retail Price) / 1.14

Then,
Price Costco sells for = Price Costco Pays * 1.14

and you've satisfied both Apple and Costco.
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PatrickCocoa - That makes WAY too much sense and logic, which is why they didn't think of it and make it happen.
 
HLdan said:
Amazing that a person can show so much ignorance by deciding how much a person can afford based on where they shop. You might want to redirect that comment to the originator. :p
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You've never actually done marketing or business or anything, have you. Of course stores market to a specific demographic, that's how the world works.
 
I'm confused

farmermac said:
Good for Costco. They can fill the shelves the Apple products used to occupy with much more profitable products (probably anything other then Apple products)
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But the other posters said that Costco booted Apple products out because Costco made TOO MUCH money. It doesn't make sense to me, but they said Costco has a maximum markup, and that Apple wanted Costco to markup Apple products more than that, in order to hit Apple's desired retail price.
 
zim said:
Costco.. eh. Never loved the idea of having to pay a membership just to shop. No Costcos around here... no one I know has a membership... now if this was Target or another retail chain then it would be a bigger issue.
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Costco is pretty awesome - they have many items in bulk and I can sometimes get much larger amounts of something for less than the grocery store. They also have a very forgiving return policy (anytime for most things, 90 days for electronics. used to be return whenever, but people abused that).
 
arkmannj said:
I completely undertand what you're saying, but I do have to say with Costco's rewards our membership is usually free. Most everyone around where I live has memberships because they are in a convenient location, and generally have good prices etc.
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and if there was near me I might have a different outlook. Although, we had a membership to BJs and never really used it.


andrew086 said:
Costco is pretty awesome - they have many items in bulk and I can sometimes get much larger amounts of something for less than the grocery store. They also have a very forgiving return policy (anytime for most things, 90 days for electronics. used to be return whenever, but people abused that).
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To me, the return policy would be the only real benefit. I use Peapod.. couldn't pay me to go into a grocery store.
 
Kestrel452 said:
What a baby. Figures.
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Fanaticism (be it for a company, person or any other thing) is like a tree that never bears fruit. It sucks up the water and nutrients from the soil around it, but it never gives anything back to the community except a bunch of air.
 
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