Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Because Costco is a HIGHLY visible company with demographics of shoppers that strongly overlap Apple product users, don't be surprised that Apple--not wanting to have a PR nightmare on their hands, something that Steve Jobs wants to avoid as much as possible--will strike a deal for Costco to carry the iPad starting January 2011. Or better yet, as compensation deal, Costco will be allowed to carry the iPhone 4 in lieu of the iPad so Costco can carry all iPod models again.
 
My understand is that Costco makes most of its profit from the membership fees. According to an article I read a year or so ago (I wish I could find it), costco sells most of its items as a set markup. This tends to run afoul of most electronic companies minimum pricing policies, so that may be why you don't get the deals on electronics you once did.

I have heard this. They make their money on membership fees. I thought that Costco was able to have cheaper prices than their competitors because the membership fees make up for the price of an item.
 
Wow...tough crowd

Newbie here, and you folks bashing Costco are barking up the wrong tree. Costco's bascially doing what Apple's done with the iphone, just in reverse. Not gonna let us in on all the fun...no prob, we'll just drop your product line. The line is a loss-leader anyway, as they usually sell the product for $5-15 under list and the same with iTunes cards. Also, their 90 Day return policy for electronics is reguarly abused(not by Apple-ites, per se, its just very generous and folks take advantage). This may be a prempt move to head off mass returns for previous generations of product, as well. As mentioned several times, Costco is a GREAT company..similar in focus and philosophy to...oh, I don't know...Apple, maybe. Cupertino can play hardball(Flash, anyone?) and so can Kirkland...we'll see who blinks. Ask Coke, Costco did they same thing to them over pricing issues and well, Coke blinked pretty quick. BTW, Costco-branded products (Kirkland) are gauranteed for LIFE, not just a year!
 
No its apparent you still dont understand how costco works after a decade. If the 64GB touch isnt sold at costco that means costco cant sell them at a good price. A good price isnt retail. That's not what costco is about.

If prices aren't as good as they used to be (your opinion), then that just means that manufacturers have raised their wholesale prices, since the highest markup on anything at costco is 14%.. Second, costco is all about providing maximum value to costco members. The latest models almost always does not provide the best value. If you want the latest model electronics, shop at best buy. To complain that costco doesnt sell the latest models shows an ignorance of what costco is all about. It's like complaining the apple store doesnt sell PCs.
Again, do I care what the reason Costco decided not to sell a product? No. Does a typical Costco shopper care? No. If Costco doesn't have the product that people wanted, then people would just shop elsewhere. I don't understand why you are so adamant to reason and defend Costco's decision. In the end, I couldn't buy the 64Gb Touch at Costco, regardless of whatever excuse you have. Period. How would Costco provide me the "maximum" value if they don't even have the product that I want? What are you, a mindless Costco zombie that will only buy products that Costco decided to stock? :rolleyes:

Costco's decision not to sell iPods won't probably affect anything significantly. Heck, they don't sell iPhones, and they're doing just fine. People that wanted to buy something that Costco didn't have would be just disappointed, and went somewhere else. It's not like Costco the only place you could get Apple products, and it's not like Costco is only selling iPods.
 
Why is it everytime Apple doesn't get its way, idiots on here just start bashing whomever it is that stops doing business with them?

Costco stops selling iPods. MR: Costco sells crap to idiots. Apple doesn't need them. Crybabies.

Adidas pulls advertising. MR: Nike's better. Adidas is crap. Apple doesn't need them.

Facebook doesn't agree to Apple's terms. MR: Facebook sucks and is a fad. Apple doesn't need them. PS: Zuckerberg is a nerd.
 
I'm a Costco (UK) member - and tbh this news is not really much news at all.

I don't go to Costco to particularly by iPods, and the fanboy bashing of Costco just doing right by itself is absurd.:rolleyes:
 
Really couldn't care less about this (even as an AAPL stockholder) but seeing Costco fan boys is pretty funny.
 
Really couldn't care less about this but seeing Apple fan boys getting their panties in a bunch is pretty funny.
 
Costco is just implementing the same policy with Apple that they operate with most of their suppliers. Costco is not a bargain basement store that sells the cheapest possible products at the cheapest possible prices.

Their approach is to stock high quality, recognized products and sell *them* at the lowest possible price. I remember once reading an interview with one of the Costco board who said that many people don't want some nasty cheap ketchup at a super-low price - what they want is Heinz ketchup at a super-low price. They have wafer thin margins, much much lower than traditional retailers, and do pretty much everything in their power to get the best possible deal. Part of this process involves pushing their suppliers to give them the best deal in the market. If they hear that Walmart or another competitor is being given a better deal, they just stop stocking that product. It's got nothing to do with crying or acting like babies - it's always been their policy. The Costco in my town forced the iPhone carrier in my country to offer a cheaper deal in their store than anywhere else, so it's now the cheapest place to sign up for an iPhone.

Costco also have an exemplary record of treating their employees well - completely the opposite of most of their competitors. They give full healthcare coverage to part-time employees, have all kinds of benefits and incentives and the CEO has one of the lowest salaries of any business leader in the Fortune 500 (he personally insists on it).

In short, they're a great company, whose business model entirely revolves around getting the best possible deal for the customer. If they can't do that, they just won't bother offering the product. If Apple wants to artificially keep their prices high, or not offer iPads to Costco, (probably because they wanted to offer a cheaper price than elsewhere), that's Apple ****ing the customer. Not Costco.

But then that's been Apple's business model for years.
 
I remember last year when Costco couldn't come to an agreement with Coke Company to reduce the price (or to offer Costco members a lower price), they decided discontinue Coke products from the store, the food court fountain drinks and employee lounge vending machines.

Costco has been known to hold grudges, so I'm not surprise to hear this news.

Not quite that simple. I spoke to my local CostCo manager when the whole Coke thing went down, since that is where we stock up on stuff like that. They said that the pricing they were getting from Coke was not acceptable - it would mean that the retail price at CostCo would end up HIGHER than WalMart's normal retail price. They stopped selling Coke products until they could get them at a competitive price. They didn't throw a 'tantrum', their business model is to sell in bulk at lower prices and they don't stock products that you can walk down the street and get for less (not counting sales promotions). As soon as they got the competitive pricing from Coke, they restocked. Not really what I would call a 'grudge'.
 
Why is it everytime Apple doesn't get its way, idiots on here just start bashing whomever it is that stops doing business with them?

Costco stops selling iPods. MR: Costco sells crap to idiots. Apple doesn't need them. Crybabies.

Adidas pulls advertising. MR: Nike's better. Adidas is crap. Apple doesn't need them.

Facebook doesn't agree to Apple's terms. MR: Facebook sucks and is a fad. Apple doesn't need them. PS: Zuckerberg is a nerd.

Exactly. So many blind people just walking through life.

Costco is a great place to find great deals on high quality stuff. Love costco
 
Please. Apple black balls suppliers and retailers in the exact same fashion. It's called business.

Costco shouldn't just take it laying down. They outsell Sam's Club by a large percentage of sales and they did it with fewer stores.

Also, Costco often sold iPod bundles that were a really good deal. For less than a car charger's price more, you'd get a radio transmiter, cases, etc. and the iPods alone I think were $5 cheaper than Apple. I know, $5 whoopie, but still.
If you're already a member, why not?

It's a longer term thing. Why invest shelf space in a vendor that has in demand products and won't let you carry them? Once Costo had discontinued iMacs, but they want to resell like Best Buy and they have a arguably good customer base, and most Costco customers spend more as Costco is more of an upscale version of a Sam's Club. Their customer base make more sense to me than Wal-Mart.

Oh, and Wal-Mart wrote the book on this tactic. Except Wal-Mart threatens to pull an entire vendor not just one product.
 
So, Apple fans are adding another corporate enemy to an already long list (Microsoft, Adobe, Google, Nokia, Motorola, Dell, HTC etc.) With this attitude, you guys will very soon have to go grocery shopping at Apple store (good luck with that).

Is not it disturbing that Apple has plenty of enemies and not a single ally?
 
What a shame... now we can only buy iPods at the 300+ Apple stores,Target,BestBuy,Kmart,Walmart,, Sams Club, Radio Shack and Toys r us. :D
 
From what I understand Costco did discount iPods quite a bit, or at least as much as Amazon does. I am guessing Apple doesn't like this and doesn't want to sell to them.

It really should NOT be up to the manufacturer what a merchant sells a product for. They get to decide the selling price to the merchant, not the customer. It sucks when you cannot get a deal ANYWHERE you go on a given product because they are all in cahoots with each other (gas stations also often come to mind). It is precisely these inane, unethical BS policies that makes me hate most corporations. They will do anything to control/rip-off/screw anyone and everyone over for a buck. While many say that is their job (to please shareholders and NOTHING else), I say everyone in this world (business and individual alike) should maintain ethical and moral standards. You wouldn't treat yourself like that, so you shouldn't be treating others that way either. It's precisely what's wrong with this world, IMO.
 
People need to get a clue, This is not about being a cry baby or what ever you apple fanboy mind might think. there is just no prfit in selling Apple products unless you are Apple.

Walmart Target Sams DO NOT make a profit selling Apple product, the benefit they get from selling Apple product is that they might actually get some accessory sells. Thats where the real profit is. Costco probably saw this and decided that it was not worth the hassle.

To those saying that Costco is crap let me let you in a little secret. Last year I payed 100 dollars for my Membership at Costco. main reason was to purchase their line of dog and cat food. Just by doing that i payed off the membership + I saved about 50 dollars. They also have a very good rewards program. this year im planning on using their travel agency to book the family vacation, 7 nights all inclusive Punta Cana trip for 2 adults and 2 kids Airfair included for a little over 3000 dollars, Including airfare. Same trip would of cost me about 4 to 5k if i booked it my self. best thing is I can pay in installments after i put 20% of the balance as down payment.
 
I'm a Costco member, and I do love Costco.
The fact that you can buy anything and then return it (electronics = 90 days) is just too awesome.

I purchased some baggage at Costco, within 10 months of using it, it broke, and i returned it, full money back, no question asked. One of the zippers broke. Thank you Costco.

I purchased some proximity sensor trashcans, and I lost the receipt. Broke a few months ago, Costco let me return it, put money on a gift card, and I got the same trash cans again, except their newer models.

My friend purchased a iPod Nano at Costco, didn't like it after a week, and returned it.

You don't even need to keep the box, as long as it's returned with all the parts that came with it, they will generally take it back.

I just wish they had a wider selection to purchase from, otherwise I just purchase their products and try it out, and return what I don't use or intend to keep.

I have 60 some odd days left before I need to return my PS3 move. :)
 
started going to costco again after a 5 year break. these days they have the same stuff as Whole Foods except it's 30% to 70% off
 
Costco Rocks ... went in there once with a nail in my tire ... They fixed it just because I am a member. The thing is I never bought the Tires there.

What company fixes another company's product ... No Charge?
 
Again, do I care what the reason Costco decided not to sell a product? No. Does a typical Costco shopper care? No. If Costco doesn't have the product that people wanted, then people would just shop elsewhere. I don't understand why you are so adamant to reason and defend Costco's decision. In the end, I couldn't buy the 64Gb Touch at Costco, regardless of whatever excuse you have. Period. How would Costco provide me the "maximum" value if they don't even have the product that I want? What are you, a mindless Costco zombie that will only buy products that Costco decided to stock? :rolleyes:

If you dont care, why are you complaining? Its quite apparent that you're willfully ignorant with your "do I care?" attitude, and have no understanding that stores stock or dont stock particular items because it doesnt fit with their business philosophy. You complaining that costco doesnt sell 64GB ipod touch for retail is as retarded as complaining that best buy doesnt sell groceries.
 
Why is it everytime Apple doesn't get its way, idiots on here just start bashing whomever it is that stops doing business with them?

Adidas pulls advertising. MR: Nike's better. Adidas is crap. Apple doesn't need them.

But, Nike is better :p (honestly, I do like Nike better but they make shoes that fit me and dn't fall apart quickly. Never really considered Adidas so don't know much about them. But Nikes have been my favorite sneaker).

Facebook doesn't agree to Apple's terms. MR: Facebook sucks and is a fad. Apple doesn't need them. PS: Zuckerberg is a nerd.

I don't think Facebook is a fad. I do think people really should be careful with the information they let facebook have and that it is not a good idea to have everything connected to it cause I don't trust its security one bit. I also think it would be nice if htey got programmers who not only implemented nifty features but actually got those features to actually, well, work. Facebook is so damned buggy.

As for Costco. I love Costco. They have a great reputation for how they treat their employees (I live in washington and they got rated one of the top 11 companies to work for here. On top of that they like to hire from within which means more chance for upward mobility even if you get in a low end job and on top of that, the people on the higher up most likely still know what it is like to work the retail part), I like shopping there, I have a lot of respect for them. And I totally respect their choice to stop selling ipods. When you shop there you do have to realize you can't always rely they will always have the same thing, they tend to have rotating stock but they do tend to have some of the same stuff (just don't rely on that ;) ). And that is cause they only sell what they can get a good deal on. If they can't get a good deal on it, they aren't selling it *shrug*. That's how it goes.

I would say between the two companies, I have more respect for Costco than Apple. I love my Mac and my iPhone, but if we're talking about companies I think truly cares, my vote goes with Costco.
 
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_1 like Mac OS X; en-us) AppleWebKit/532.9 (KHTML, like Gecko) Version/4.0.5 Mobile/8B117 Safari/6531.22.7)

Well there goes my membership. That sucks too cause I kind of liked Costco.

Oh well.

yeah right, we're calling your bluff

This won't affect the core Costco consumers in the slightest

It's apple's loss, not costco's
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.