Costco Connection - August 2006

This story originally appeared in the August 2003 issue. The service and product sidebars have been updated.

Tips from Costco and its members

can help your business year-round

Stories by Will Fifield, T. Foster Jones, Stephanie E. Ponder, Mark E. Stroder, Tim Talevich and David Wight

Nurture thy employees—with Costco memberships. Many companies, such as Canapés caterers in Frederick, Maryland ( www.canapescatering.com), give employees Costco memberships as part of their benefits package. “They love it. We love it, love it, love it,” exclaims owner M.L. Carroll-Tilden, who has 15 full-time workers.

Keep cost of goods low. When Seattle-
based Simon and Huey’s Doggoned Tasty
Treats ( www.simonandhuey.com) started

One of the keys to success in business—and in life—is a
willingness to learn from others. After all, nobody has
all of the answers. Some of the best ideas come when you
least expect them. The key, of course, is to keep your
knowledge antenna up whenever possible.

For many years, members have tuned in to Costco for products and services that have helped them start up, maintain and grow their business.

Six years ago, for example, Susan Seiling started her digital imaging photo-finishing lab business—West Coast Imaging (www.westcoast imaging.com)—with the purchase of a CD drive from Costco’s Clovis, California, warehouse. She began with one customer.“We now have 1,500 clients and burn dozens of photo CDs each day,” Seiling says. “Costco has played a direct role in keeping our costs down, allowing us to invest our money in growing our business through more employees, better benefits and more extensive services.”

And, through her Executive Membership, she’s also saving money with Costco’s merchant credit-card processing, payroll processing and check-printing programs.“We still drive the 45 miles to Costco from our home in Oakhurst, but it’s well worth the journey,” Seiling says.

In keeping with Costco’s theme of offering value in bunches, we’d like to offer 52 tips (go ahead and count ’em, they’re all there!) for your small business. Many of these pearls came from savvy members who are still learning on the job. We hope you’ll be able to use a few of these tips to help your business achieve success.

3out, the company bought ingredients from grocery stores—until they found Costco. “We found the costs at Costco are significantly lower, particularly for honey,” says Jessamy Whitsitt, president and co-owner. “We can pass that on to our customers.”

Speed up your cash flow. Ed Hildreth, owner of Sound Janitorial Supply in Tumwater, Washington ( www.sjscme.com), is reducing his cost of doing business thanks to Costco’s merchant credit-card processing through NOVA. “Our old credit-card system took two or three days to batch and process,” he says. “We now receive payments within 24 hours, which allows us to pay off our line of credit quicker and save money on interest charges.”

Walk your talk! Surprised that some of her fitness instructors were serving doughnuts and coffee after health education seminars and exercise classes, SENioRs Unlimited (www. seniorsunlimit.com) owner Kay Van Norman of Bozeman, Montana, introduced Costco’s Kirkland Signature Trail Mix, smoothies and fruit as healthful alternatives. The healthy change has brought in more word-of-mouth participants. “Residents hear about the great smoothies and come to the next seminar to see what all the fuss is about,” she says.