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Presented by Jeremy Smith, President and Founder, Launchpad and James Ren, Senior Category Manager, Branded Food, Thrive Market Moderated by Gary Hirshberg and Bob Burke
The H Spot. How does Costco work and how you can sell to them?
Listen to the interview here.
Presenting one face, and the truth of the internal brand are a big part of today’s discussion. Some of the highlights include where Dave brings up, “With Costco, obviously, very limited selection compared to a grocery store which will have tens of thousands of items in it. It’s a direct ship model, there’s no distributors and they have a very small sort of 10% to 14% margin, very straightforward with vendors. So it’s a very different model. And it seems like their mantra has always been.”
Dave’s guest, Jeremy Smith, CEO of Launchpad gets right to it. “I think you ask a few vendors and no, they’ll debate you on how straightforward they really are. They like to think they are, but it’s like I always say, Costco will lay out to a broker or to a brand, all the rules, because they have all these rules you have to read. And then you go in and see the Kirkland Signature items which violate 70% of the rules. So just because it’s something as simple as a MasterCard, which is supposed to have at least an inch and a half lip on it, that’s supposed to be a strict policy and certain buyers really enforced it. But on the KS items, it’s all over the place.”