Open Letter to Jim Sinegal Concerning Costco Vendors and Roadshows

Dear Jim Sinegal, Costco Co-Founder:

You were very successful in building Costco into a brand and retail concept that is loved far and wide.  People just love shopping and spending money at your warehouses.

Costco members love the access they get to great products at great prices.  They love to be introduced to new products via demonstrations, special events and Costco Roadshows.


I have no doubt that many vendor Roadshows and special events at Costco have been extremely successful for many years.  I have personally seen many companies sell out of their product during these Roadshows - and then start taking orders to be shipped.  It's no secret that these Roadshows and special events give a nice boost to the bottom line - both sales and profit.

Something else I have personally witnessed at Costco warehouses around the country, is vendors and Roadshows that underperform.  Some vendors do not perform well because they are not properly staffed, trained or prepared.  Some vendors do not perform well because their products have some type of inherent problem not discovered through the rigid Costco buying process.  There are many Costco Roadshow vendors that underperform for a very different (and easily fixable) reason.

In many Costco warehouses around the country, vendors are treated like lepers who have escaped from quarantine.  Intentional or not, at many Costco warehouses, Costco employees do not 'get' that vendors are (or at least should be considered) valued partners that help increase the bottom line - and help insure that Costco members continue to get good deals on quality products.  These vendors are also at least partially responsible for Costco employees having good jobs with good pay.  There is no way that these vendors should be looked down on and treated like they don't count.

In my experience, I have found that the type of treatment that Costco vendors get at a particular warehouse is influenced from the top down.  The best warehouses (with the biggest sales numbers) are generally run by general managers who actually care about and respect their vendors.  These super successful GMs actually get out and meet their vendors who are working so hard at Costco special events and Costco Roadshows.  They get to know their names - and they certainly know their sales numbers.  Because their GMs treat Costco vendors with respect, their employees generally do too.

At other warehouses, vendors never see or meet the GMs.  It's frequently a chore for a Costco Merchandise Manager to have to "deal with" a Roadshow vendor.  Very often, vendors are provided a space that is inadequate, not thought out - and the easiest situation for said merch manager.

MY PROPOSED SOLUTION:

I propose to provide services as a Liaison between Costco Warehouse management and Costco Roadshow vendors.  A Costco Vendor Liaison would work with warehouse management and Roadshow vendors to make sure that everything goes as smoothly as possible during Costco Roadshows and special events.

A Costco Vendor Liaison would:

• Plan out Roadshow and Special Event schedules with Costco warehouse management.
• Promote and publicize Roadshows in warehouse and online so that members can plan on seeing the vendors they want.
• Communicate with vendors who are scheduling and planning for Roadshows.
• Strategically assign Roadshow and special event sales spaces to vendors based on many factors, including specific warehouse needs, past sales, current promotions, etc.
• Train Costco staff how to work with and help vendors be more successful during Roadshows and Special Events.
• Train Costco vendors how to work with Costco personnel, proper treatment of Costco members how to be as successful as possible during their Roadshows and special events.

I would proposed to run a test at three of your local warehouses for 180 days to show how much sales could be increased.  Once the positive results of the Costco Vendor Liaison program were proven, the program could quickly be implemented at other warehouses as well.

If you have interest in discussing how I can help you increase your bottom line through this Costco Vendor Liaison program, please call me on my cell phone at your convenience.  (425) 429-8590.

Thank you very much for your time.  I very much look forward to meeting with you to discuss the Costco Vendor Liaison program.

Joe Kennedy

(425) 429-8590