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Old 02-15-2014, 08:59 PM  
petegz28 petegz28 is offline
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Rejecting Walmart Strategy, Trader Joe’s Pays Employees A Living Wage And Wins

We’ve watched as places like Walmart, Papa John’s, Target, Applebee’s and other businesses continue to pay sub-par wages while claiming their only option for profit, given the economy and their being “forced” to provide employees with insurance, is to either cut employees’ hours and/or their wages. This miserly strategy is justified and implemented despite the fact that research shows that raising wages would actually “benefit workers, the industry and the overall economy.”

Yet in the midst of Scroogian thinking, a handful of smarter businesses have stepped to the forefront to reject this “austerity” model for a different philosophy right in line with research: pay a good living wage, offer benefits and maximize one of your most important “assets”: your valued workforce. Top on that list of smart retailers is Costco; Tulsa-based convenience chain, QuikTrip, and consumer favorite, Trader Joe’s.

Trader Joe’s is particularly notable as a store that inspires an almost cult-like appreciation from its customers. Founded by its namesake, Joe Coulombe, the precursor of Trader Joe’s was a convenience store launched in Los Angeles in 1958 with the rather unimaginative name, Pronto Market. Deciding it wouldn’t be in his best interest to attempt to compete with the ubiquitous marketplace leader, 7-Eleven, Coulombe ultimately decided to specialize; rumor has it he got the idea of a “South Seas motif” while on a trip to the Caribbean, where he noticed American travelers enjoying and bringing back to the States unique items with an island flair. He opened his first official “Trader Joe’s” in Pasadena in 1967 (the original store is still there!) and it was an immediate hit; a 2008 Business Week article made the point that Trader Joe’s “sells twice as much per square foot than other supermarkets.”

Given its profitability, one might assume that, like Walmart and Target, it was operating under the strategy of categorizing employees as a “business cost” that needs to be minimized and kept under tight control. One would be wrong. From The Atlantic:

Many employers believe that one of the best ways to raise their profit margin is to cut labor costs. But companies like QuikTrip, the grocery-store chain Trader Joe’s, and Costco Wholesale are proving that the decision to offer low wages is a choice, not an economic necessity. All three are low-cost retailers, a sector that is traditionally known for relying on part-time, low-paid employees. Yet these companies have all found that the act of valuing workers can pay off in the form of increased sales and productivity. [Emphasis added.]

QuikTrip, Trader Joe’s, and Costco operate on a different model, Ton says. “They start with the mentality of seeing employees as assets to be maximized,” she says. As a result, their stores boast better operational efficiency and customer service, and those result in better sales. [... ]

The approach seems like common sense. Keeping shelves stocked and helping customers find merchandise are key to maximizing sales, and it takes human judgment and people skills to execute those tasks effectively. To see what happens when workers are devalued, look no further than Borders or Circuit City. Both big-box retailers saw sales plummet after staff cutbacks, and both ultimately went bankrupt.

There is also the issue of consumer perception. Places like Walmart and Papa John’s, one a retailer, the other a food service provider, both suffered and continue to take negative PR hits for paying low wages, “nickel-and-diming” employees on the issue of insurance benefits, and appearing to place the burden of economic change and demand on the backs of their workforce, all the more galling when company CEO’s are making multimillion dollar profits. Consumer good-will and the general perception of a business tend to take a beating when those at the helm come off as greedy, unethical, and denigrating of their workforce.

Trader Joe’s, Costco and Quik Trip, on the other hard, have engendered loyalty and expanded their public good will with positive, worker-protective strategies that exhibit the importance they place on their most valued asset: the people working for and with them, whose skills and hard work are essential to a healthy bottom-line. And that is, after all, the goal of any smart company.

Given its profitability, one might assume that, like Walmart and Target, it was operating under the strategy of categorizing employees as a “business cost” that needs to be minimized and kept under tight control. One would be wrong. From The Atlantic:

Many employers believe that one of the best ways to raise their profit margin is to cut labor costs. But companies like QuikTrip, the grocery-store chain Trader Joe’s, and Costco Wholesale are proving that the decision to offer low wages is a choice, not an economic necessity. All three are low-cost retailers, a sector that is traditionally known for relying on part-time, low-paid employees. Yet these companies have all found that the act of valuing workers can pay off in the form of increased sales and productivity. [Emphasis added.]


http://www.addictinginfo.org/2013/03...wage-and-wins/
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Old 02-15-2014, 09:49 PM   #16
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Do you not understand that membership fee, rebate (or whatever you call your Costco kick back), prices and quality (as well as other factors like convenience) all go together to determine the value to each individual? It's great that your rebate exceeded your membership fee, but without knowing anything else we can't figure out whether you got a good deal or not. You obviously think you got a good deal, but with the way you go off half cocked on the basis of limited information, that doesn't tell us much.
Could you reach any more? Yeah, it's real hard to figure out if I got a good deal or not by coming out $175 ahead while paying below retail prices. JFC you are unreal anymore.

Did I get a good deal? I paid $1.70 less a gallon for milk + 2% back
Did I get a good deal? I pay on average .10 less a gallon for gas than QuickTrip, +2% back

Either you are mathematically challenged or you are just being a douche.
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Old 02-15-2014, 09:52 PM   #17
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I can go to Hy-Vee, Price Chopper or wherever and get a small block of Kerry Gold Dubliner cheese for almost $8 or I can go to Costco and get literally, literally 5 times as much for the same brand for $2 more.

I don't know, patteeu, am I getting a good deal????
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Old 02-15-2014, 09:52 PM   #18
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Originally Posted by petegz28 View Post
Just to give you a small taste of the local flavors here:

for 1 gallon of skim milk:

Wal-Mart Market: $4.39
Target: $4.39
Hy-Vee: $4.29
Costco: $2.69

so if you paid for the lowest Costco plan @ $55 and bought just 1 gallon of milk a week you still come out $30 ahead than if you went to Wal-Mart. And I don't know about the milk at Wal-Mart but the milk at Costco is all hormone free and what not
Here, and I just looked at this on Wednesday

Trader Joe's - 3.29 [all]
Gas station a block over - 3.69 [2%]
Aldi's - 2.99 [all]
Shop'n'Save -3.89-4.19 [skim --> full]
WalMart 3.39-3.69 [skim --> full]

Went to Sam's and Costco at Christmas and both were 3.29
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Old 02-15-2014, 09:53 PM   #19
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Seems once again the Walmart is evil campaign moves forward….

Then there is the rest of the story….http://washingtonexaminer.com/surpri...rticle/2541670

WM may not be Saks Fifth Ave but its not a slave labor sweat shop run by managers with whips
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Old 02-15-2014, 09:54 PM   #20
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Old 02-15-2014, 09:54 PM   #21
petegz28 petegz28 is offline
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For Similac Sensitive (Baby formula)

Wal-Mart: 1.14 oz can for $26.99
Target: 1.14oz can for $23.99
Coscto: 2lb can for $29.99

am I getting a good deal at Costco???
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Old 02-15-2014, 09:55 PM   #22
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Quote:
Originally Posted by Baby Lee View Post
Here, and I just looked at this on Wednesday

Trader Joe's - 3.29 [all]
Gas station a block over - 3.69 [2%]
Aldi's - 2.99 [all]
Shop'n'Save -3.89-4.19 [skim --> full]
WalMart 3.39-3.69 [skim --> full]

Went to Sam's and Costco at Christmas and both were 3.29
Where are you? You can't go to a grocery store here in Olathe and get milk under $4 it seems. Though I have only looked at Hy-Vee, Wal-Mart and Target
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Old 02-15-2014, 09:56 PM   #23
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Costco has good booze.
Yeah, if you're on the Mo side.
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Old 02-15-2014, 09:57 PM   #24
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Originally Posted by HonestChieffan View Post
Seems once again the Walmart is evil campaign moves forward….

Then there is the rest of the story….http://washingtonexaminer.com/surpri...rticle/2541670

WM may not be Saks Fifth Ave but its not a slave labor sweat shop run by managers with whips
Wal-Mart has some of the worst business practices around. That's why they have been sued for everything from discrimination to child labor. They sell crap but unfortunately that's all some can afford.
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Old 02-15-2014, 09:58 PM   #25
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Originally Posted by petegz28 View Post
Where are you? You can't go to a grocery store here in Olathe and get milk under $4 it seems. Thought I have only looked at Hy-Vee, Wal-Mart and Target
We buy from the local dairy and it's $3.
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Old 02-15-2014, 09:59 PM   #26
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We buy from the local dairy and it's $3.
Pretty reasonable considering you are getting to buy local.
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Old 02-15-2014, 10:00 PM   #27
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Wal Mart sells crap? Nearly all they sell is brand name merchandise.
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Old 02-15-2014, 10:01 PM   #28
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Wal Mart sells crap? Nearly all they sell is brand name merchandise.
Then you should be happy to trade with them if that's what you're looking for.
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Old 02-15-2014, 10:02 PM   #29
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Originally Posted by petegz28 View Post
Could you reach any more? Yeah, it's real hard to figure out if I got a good deal or not by coming out $175 ahead while paying below retail prices. JFC you are unreal anymore.

Did I get a good deal? I paid $1.70 less a gallon for milk + 2% back
Did I get a good deal? I pay on average .10 less a gallon for gas than QuickTrip, +2% back

Either you are mathematically challenged or you are just being a douche.
Are milk and gas the only things you buy there?

Sorry petegz28, sometimes things are a little more complicated than you seem to understand. But I'm happy that you're happy with the deal you're getting.
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Old 02-15-2014, 10:04 PM   #30
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Originally Posted by patteeu View Post
Do you not understand that membership fee, rebate (or whatever you call your Costco kick back), prices and quality (as well as other factors like convenience) all go together to determine the value to each individual? It's great that your rebate exceeded your membership fee, but without knowing anything else we can't figure out whether you got a good deal or not. You obviously think you got a good deal, but with the way you go off half cocked on the basis of limited information, that doesn't tell us much.
The Costco highest membership is $110. If you don't spend enough to get the rewards up to a $50 value they give you a $50 refund (or the difference?) at the end of the year so that your high membership only costs the same as the lower one which is $50. That made it easy for us to go with the higher membership.
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