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The length Costco is going to for your $4.99 Rotisserie Chicken...

Passepartout

Passepartout

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Just got back from 100 mile RT to the Pokertello branch. Again I saw chicken priced under $4.99. what is the deal with the scrawny chickens at Pokertello?
 
billymach4 said:
Just got back from 100 mile RT to the Pokertello branch. Again I saw chicken priced under $4.99. what is the deal with the scrawny chickens at Pokertello?
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It isn't just there. If a chicken isnt up to the Costco mandated 3 lbs, it's sold at lower cost. Simple as that.
 
The Costco rotisserie chicken is the quintessential "loss leader." It will go down in marketing history as a case study. Don't we all know that customers are guided in grocery stores as much as casinos? There is a plan. The cheep (pun) chickens are in the faaar back of the store, and they fly (ah hah hah) off the massive warming plates.

It has worked its magic on me to the benefit of Costco. I cannot tell you how many times I have walked into Costco to buy a rotisserie chicken for dinner and left hundreds of dollars poorer. (I did get a great deal on a Traeger grill and an LCD TV, among other items along the way).

A few months ago, my wife asked me how much I spent at Costco last year, because they informed her it would be beneficial to upgrade to Executive level as a result of spending more than $1,000 per year and she knew she did not spend anywhere near that amount.

Uhhhh ...
 
CO skier said:
The Costco rotisserie chicken is the quintessential "loss leader." It will go down in marketing history as a case study. Don't we all know that customers are guided in grocery stores as much as casinos? There is a plan. The cheep (pun) chickens are in the faaar back of the store, and they fly (ah hah hah) off the massive warming plates.

It has worked its magic on me to the benefit of Costco. I cannot tell you how many times I have walked into Costco to buy a rotisserie chicken for dinner and left hundreds of dollars poorer. (I did get a great deal on a Traeger grill and an LCD TV, among other items along the way).

A few months ago, my wife asked me how much I spent at Costco last year, because they informed her it would be beneficial to upgrade to Executive level as a result of spending more than $1,000 per year and she knew she did not spend anywhere near that amount.

Uhhhh ...
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YOU'RE NOT EXECUTIVE?#I$)(#*$)(@#*%)@*#:eek:
 
Wow I'm glad my Mister has more self control. When he goes to Sam's Club "for a chicken" that's generally all he comes home with. We're fortunate though . . . the store is less than 2 miles from the house . . . closer than any other restaurant or fast food joint.
 
Timeshare Von said:
Wow I'm glad my Mister has more self control. When he goes to Sam's Club "for a chicken" that's generally all he comes home with. We're fortunate though . . . the store is less than 2 miles from the house . . . closer than any other restaurant or fast food joint.
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That's our situation with Costco, 2.5 miles from home and the closest business to us. I go regularly and spend less than $20. Ending up behind large purchases to check out sucks though.

Sent from my SM-G960U using Tapatalk
 
Passepartout said:
It isn't just there. If a chicken isnt up to the Costco mandated 3 lbs, it's sold at lower cost. Simple as that.
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I watched a documentary not so long ago (can't remember the name) as they passed chickens through the assembly line and packaging. In the beginning they were scrawny and then they weren't. They showed them pumping them up. Yuck.
 
SandyPGravel said:
That's our situation with Costco, 2.5 miles from home and the closest business to us. I go regularly and spend less than $20. Ending up behind large purchases to check out sucks though.
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Costco needs a "chicken only" express checkout line.
 
GetawaysRus said:
Costco needs a "chicken only" express checkout line.
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That isn't gonna happen since the whole idea is to lure shoppers to the far reaches of the store and entice them to make more purchases. Any more than following the likes of Wally-World and Albertson's and having grocery delivery and just-inside-the-door pickup.
 
You all are making my heart smile. Costco loves that you are loyal members. Listen to you all, raving about Costco things. :thumbup::thumbup::thumbup:

If the rotisserie chicken is the example you use to justify Costco membership, that's just fine with them. If you ONLY buy a rotisserie chicken this trip, that's also fine, since Costco knows you will likely spend a BUNCH more on another trip. And you do. Loss leaders add to overall member satisfaction. So if you're a happy member, Costco losing a few bucks on a chicken to keep you happy, will be a very good thing for everyone.

@CO skier: Stop by the Member Services desk and ask them to run your Shopping History. They can give you a grand total of what you spent last year, and how that translates into the membership fee offset. If the numbers support it, and you've spent enough to cover the upgrade cost from Gold Star to Executive, then you're money ahead to go for the upgrade, and start earning the 2% rebate on everything you buy. (Add in the Costco Citibank Visa, and it's as much as an additional 4% back.) If you're not sure you'll spend enough, upgrade anyway, and monitor your spending. If you find you just haven't spent enough to support the additional $60 a year in membership costs, they can downgrade you from Executive back to Gold Star, and refund you the membership difference. So you have nothing to risk. But my gut tells me if you're a regular Costco shopper, you'll pay for your membership pretty easily. Just about every regular shopper does.

@Glynda: Costco doesn't plump their rotisserie chickens. (I agree, that's pretty disgusting.) That's why the Pocatello location mentioned above has some selling for less that $4.99. If the chicken is underweight, it is weighed and is sold on a per-pound price. That way you aren't overpaying for a smaller bird. It's a factor of the upstream poultry provider, and is why @Passepartout posted the original link to Costco setting up their own poultry growing location. They want more control over every factor of the process, so those underweight chickens are fewer in number. If you always buy a $4.99 rotisserie chicken, you're sure to be getting the most cluck for your buck. LOL!

Dave
 
Passepartout said:
It isn't just there. If a chicken isnt up to the Costco mandated 3 lbs, it's sold at lower cost. Simple as that.
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Wherever I travel to I always go to a local Costco and browse around. I've seen Costco's in New York Florida New Jersey Arizona California Idaho Utah Hawaii. Seems that they don't feed those chickens in Pocatello Idaho. That is the only location I've ever seen them for under $4.99. maybe they'll fatten them up a little better in Nebraska.
 
billymach4 said:
Wherever I travel to I always go to a local Costco and browse around. I've seen Costco's in New York Florida New Jersey Arizona California Idaho Utah Hawaii. Seems that they don't feed those chickens in Pocatello Idaho. That is the only location I've ever seen them for under $4.99. maybe they'll fatten them up a little better in Nebraska.
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We go to Costco in Cancun and Cabo.
 
billymach4 said:
Seems that they don't feed those chickens in Pocatello Idaho. That is the only location I've ever seen them for under $4.99. maybe they'll fatten them up a little better in Nebraska.
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I think that's part of tthe plan. I have seen them under $4.99 here, but they are the minority, just look through them and pick a chubby one. As Dave said, Costco can only sell what their suppliers provide. That's why they are spending $450 million on vertically integrating the whole shebang.
 
geist1223 said:
We go to Costco in Cancun and Cabo.
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Mexico Costco locations are run by another corporation. It's in close conjunction with Costco USA, but they have different products, suppliers, and policies. That's why getting a refund in the USA on a product you got at a Mexico warehouse is very difficult, if not impossible. Costco Canada is similar, and it can be nearly impossible to find a product in the shopping history that was purchased in one of the warehouses outside the USA. Things may be better than they used to be, but it's not nearly as convenient as it is with merchandise bought inside the USA. When in doubt, save your receipt. :)

Dave
 
DaveNW said:
You all are making my heart smile. Costco loves that you are loyal members. Listen to you all, raving about Costco things. :thumbup::thumbup::thumbup:

If the rotisserie chicken is the example you use to justify Costco membership, that's just fine with them. If you ONLY buy a rotisserie chicken this trip, that's also fine, since Costco knows you will likely spend a BUNCH more on another trip. And you do. Loss leaders add to overall member satisfaction. So if you're a happy member, Costco losing a few bucks on a chicken to keep you happy, will be a very good thing for everyone.
Dave
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Well... the term "loss leader" is a bit relative here since one does pay annual membership of $60 or so for the privilege. It's not like the local grocery store selling a gallon of milk as a loss leader. Oh, both are located in the back of the store, but the grocery doesn't charge an admittance fee :)
 
Snazzylass said:
Well... the term "loss leader" is a bit relative here since one does pay annual membership of $60 or so for the privilege. It's not like the local grocery store selling a gallon of milk as a loss leader. Oh, both are located in the back of the store, but the grocery doesn't charge an admittance fee :)
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True. But they are very different business models. The grocery store makes a substantial profit on the products it sells. Costco's markup is a maximum of 10%. The membership fees you pay to belong pay the wages of Costco's workers, and warehouse overhead. The profits they make selling the product go back into corporate infrastructure to support providing other products in the warehouse. The item count at Costco is very limited, compared to a grocery store (How many different types/brands/sizes of milk does the grocery sell, compared to Costco's one brand, one size milk option?) If you have a licensed business and are buying for resale, Costco will sell to you sales tax-free. Your local grocery store won't do that.

Yes, the rotisserie chicken is a loss leader, in the same way the hot dog and soda for $1.50 are a loss leader. They know that if you're happy, you'll stay longer, and end up spending more - if not today, then on another day. They could locate it in the front of the store, and have the same approach to things. It's in the back, because that's where they're being cooked.

Dave
 
I worked at Price Club (pre Costco) when I was in my early 20s. We sold cartons of cigarettes like crazy and had a lot of no tax, resale buyers.

it was all cash and checks back then. Very few credit cards. The San Marcos store was packed because we were the only game in town. We worked hard bell to bell. We had to call out numbers then because they didn’t have scanners.
 
buzglyd said:
I worked at Price Club (pre Costco) when I was in my early 20s. We sold cartons of cigarettes like crazy and had a lot of no tax, resale buyers.

it was all cash and checks back then. Very few credit cards. The San Marcos store was packed because we were the only game in town. We worked hard bell to bell. We had to call out numbers then because they didn’t have scanners.
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I’ve been in that (and all the San Diego area warehouses) back then. No scanners, all verbal code calling. It was quite a process :)

And funny thing - a hot dog and soda was $1.50 back then, too. :)

Dave
 
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DaveNW said:
I’ve been Working n that (and all the San Diego area warehouses) back then. No scanners, all verbal code calling. It was quite a process :)

And funny thing - a hot dog and soda was $1.50 back then, too. :)

Dave
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I’m guessing I was there around 1984-85. I got hired as a seasonal and got kept on after that. I didn’t work there for a long time. Maybe six months or so.
 
buzglyd said:
I’m guessing I was there around 1984-85. I got hired as a seasonal and got kept on after that. I didn’t work there for a long time. Maybe six months or so.
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I was in the Navy in those days, stationed in Point Loma, and I had just bought a house in North Park in late 1983. I spent a LOT of my time at Price Club. I've now been a member in some form since 1982. So what's that, 37 years? Jeez, talk about brand loyalty! LOL!

Dave
 
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