"I never thought they could even sell tires." Chen Zhiwen said with some surprise when he saw the tires hanging on the wall in front of him.
The United States is a big car country. Basically every adult has a car. It is normal for supermarkets to have special areas for daily necessities for cars. What Chen Zhiwen was thinking about should be glass wipers, wipers, seat cushions, etc. But he didn't expect there to be tires here. Because he had been to several different supermarkets in the United States before and there was no such thing.
"People who come to Costco to shop basically drive, so providing car services is what I plan to focus on. Originally, I was planning to sell gasoline, but the qualification for a gas station is not that easy to get, and it takes a while to travel. process, so we can only start with maintaining the car." Pierce explained: "
There is a special car repair shop behind the supermarket. I hired two experienced technicians from outside to solve car problems for customers. The service price is also based on Costco's business model, which is very cheap and the profit is very low. In addition, there are Free manual car wash equipment. "
"This is a good way to attract car owners to become our VIP customers." Chen Zhiwen nodded and said.
In the United States, labor costs are very high. Generally, if a car is repaired in a car shop, the cost of parts may not be high, but labor is very expensive. Therefore, most minor problems are solved by the car owners themselves, but larger problems are not. The only option is to go to the auto repair shop.
However, as long as you can sell more, you can make a small profit. Generally, the price of auto repair shops is high because there are few and unstable customers. But the number of customers at Costco is naturally not a problem. With more customers, even if there are a few repairmen No matter how high the salary is, it can be spread out on each vehicle. In turn, low-priced auto repair services can also become an attraction for users to become Costco VIP customers. As long as they become VIP customers, their consumption in other aspects will naturally There you have it.
“Currently, almost 15% of our potential VIP customers are attracted through car services,” Pierce said.
"It's really good. Get the qualifications of the gas station as soon as possible. As long as our gas prices are cheaper, we will attract a lot of people." Chen Zhiwen nodded and said, although the Americans are very rich, most of their cars have high fuel consumption. The price of oil has tripled last year, and no one can bear it, so they can only reduce the number of times they use cars and the distance they travel.
This is consistent with Costco's planning direction. Users come here to buy enough daily necessities for two or three months at a time. If it can provide lower gas prices and appropriate car maintenance services, it will basically cover all the needs of users for shopping. Needed.
This is actually the background of the success of Costco in later generations. It is also the same logic as Wal-Mart. Small profits but quick turnover is the fundamental reason for the rise of supermarket giants. No matter which retail model it is, as long as this is the principle and the cost is reduced, it will be inevitable. can succeed.
"There's just another problem. If our oil prices are too cheap, some people's interests may be affected," Pierce said.
"That's true, but it's not a big problem. Just give me gifts if you cheer up. As long as the value of the gift is high enough, it's equivalent to a discount." Chen Zhiwen thought for a while and said.
There are many goods in supermarkets, with different prices and varieties. The prices of various supermarkets are also different, and each supermarket has its own coverage area, so even if which one is cheaper, it is difficult to compare, especially for users. You know, only long-term consumption and long-term comparison will find out, but the price of oil is different. A few cents cheaper will arouse the hostility of the industry.
This is actually a problem for Costco in later generations. Because it infringes on the interests of other gas stations, under pressure from nearby gas stations, fuel dealers in the state do not sell fuel to Costco, forcing Costco to transport fuel to the next state. But in this way Once the cost has increased a lot, the business is no longer cost-effective, but it doesn't matter. This is just a means to attract users. It doesn't matter if it doesn't make money. Later, when Costco becomes really large, the so-called pressure will naturally be reduced. Invalid.
However, Costco has just opened, so it is better to keep a low profile. Giving gifts is also a means of promotion. As long as the price does not fall, nearby gas stations will not unite because the promotion will stop at any time. As for waiting for them to find out When it's abnormal, we'll see when the time comes, as long as Costco relies on this method to gather enough VIP customers.
"That's okay. It's not bad to give some drinks, beer or something. Most young Americans like these." Pierce said with a smile.
A few people walked and chatted. After browsing the entire supermarket, they came to the office space in the northeast corner, a three-story office.
In the era before computers, all information was calculated on paper, and all kinds of information were almost piled up in the office.
"It will open in three days. It has been very busy these days and things are a bit messy." Pierce said with some embarrassment.
"It's okay." Chen Zhiwen nodded. Under normal circumstances, when his boss comes, at least his staff will tidy up the office space. But even so, there is still so much information. You can imagine how busy it will be before.
Relatively speaking, although Costco has a large area, its SKUs (product categories) are much lower than those of supermarkets such as Wal-Mart, so you can imagine the workload of other supermarkets. The high operating costs of supermarkets in this era have a lot to do with this aspect!
"Pierce, are there any computers on the market that can collect statistics on supermarket items?" Chen Zhiwen asked.
Pierce thought for a while and said: "I heard that Kmart ordered computers worth tens of millions of dollars from IBM last year to assist in the operation of their internal supermarkets. However, outsiders don't know how to do it specifically. I have also consulted about IBM's quotation. It’s too high. The price of another company, Wang Computer, is okay, but they have no experience in working with the retail industry and need to re-develop it. It is estimated that it may cost about US$3 million.”
"That's too expensive." Chen Zhiwen said with a frown. Even the price of a cheap Wang's computer can match the investment of an entire supermarket. This price is far more expensive than expensive American labor. Only in some special industries, Only then can I afford such an expensive computer.
Wang Computer is the most famous Wang An Computer in later generations. Its founder, Wang An, will become the fourth richest man in the world and the richest Chinese man in a few years. His industry is industrial computers, and he relies on low cost performance to seize IBM's market. By the early 1980s, his net worth exceeded 2 billion U.S. dollars. Unfortunately, he missed the era of personal computers. Coupled with internal conflicts within the company, it eventually collapsed.
Pierce nodded and said, "I also calculated the cost and decided to use labor."
"Okay, but we have to keep an eye on the technology industry. If there are any new technologies or the cost is significantly reduced, computers should still be used." Chen Zhiwen said.
An important factor in the rise of Wal-Mart in later generations is the electronic reform in the early 1980s. Although hundreds of millions of dollars were invested, it successfully reduced costs and improved logistics efficiency. Chen Zhiwen naturally hopes that Costco can also seize this opportunity, but it is estimated that it will have to wait until The era of personal computers is over.
