Shopping For Success: How Sinegal Took Costco to the Top
Shopping For Success: How Sinegal Took Costco to the Top
Respect: Being a Costco employee is nothing to shrug your shoulders at. With one of the highest pay rates in the industry, and an overly generous health package, Sinegal has established a one-of-a-kind human resource management plan. In doing so, he has also lowered his rates of turnover and theft, and created a thousands-strong army of motivated and productive employees.
Value: For the past 18 years, Costco has charged $1.50 for its famous hotdog and soda deal, and Sinegal promises that is something that will never change so long as he is in charge. While not all of its product prices are guaranteed to remain the same for so long, Sinegal has made it his priority to give his customers the greatest value for their money. By keeping a low stock of high quality products, and refusing to hike his profit margins by more than 14 percent, Sinegal has stayed true to his goal.
Technology: It may not be one of the industry’s most hi-tech companies, but Sinegal has made sure that where it needs to be, Costco is at the forefront of technology. By embracing new forms of automation, and being willing to experiment with energy-reducing technologies, Costco has emerged as a technologically savvy retail leader.
Communication: “This is almost like show business,” says Sinegal. “I mean, every day you're opening up and it's show time.” Sinegal loves his job, and that is why no matter whether you are a cashier or a fellow CEO, he is willing to take the time to talk to you. A down-to-earth businessman, Sinegal makes sure that all the processes are in place to maintain a corporate system of accountability and openness.
Marketing: Is it odd that despite not ever spending a dollar on advertising, marketing is considered one of Sinegal’s success factors? Well, despite the lack of money spent on it, Sinegal knew what he was doing in terms of promotion. By creating a happy and loyal team of workers, and focusing on growing strong relationships with small businesses, Sinegal did, in fact, create a marketing machine in Costco.
“We’re not kamikaze pilots,” says Sinegal. “We want to do things in a sensible fashion.” To that end, Sinegal has taken the time to plan out his growth strategy. From the light bulbs in his stores to the population densities of the next cities Costco plans to move into, Sinegal leaves no stone unturned. And, it is those details that Sinegal says every entrepreneur needs to focus on. “Otherwise you’re just a hamster running on a treadmill.”
Shopping For Success How Sinegal Took Costco to the Top
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When Sinegal’s college presented him with its Most Distinguished Alumnus award, the Costco founder was almost left speechless. “I’ve never been told I’m a most distinguished anything,” was all he could say. With his poor grades and lack of focus in high school, it is doubtful that Sinegal’s teachers ever thought he would amount to much. But, today, with a billion dollar corporation under his belt, Sinegal remains not only one of the most accomplished, but also one of the most admired and liked CEOs in the industry. How did this once reckless young boy become the success he is today?
Respect: Being a Costco employee is nothing to shrug your shoulders at. With one of the highest pay rates in the industry, and an overly generous health package, Sinegal has established a one-of-a-kind human resource management plan. In doing so, he has also lowered his rates of turnover and theft, and created a thousands-strong army of motivated and productive employees.
Value: For the past 18 years, Costco has charged $1.50 for its famous hotdog and soda deal, and Sinegal promises that is something that will never change so long as he is in charge. While not all of its product prices are guaranteed to remain the same for so long, Sinegal has made it his priority to give his customers the greatest value for their money. By keeping a low stock of high quality products, and refusing to hike his profit margins by more than 14 percent, Sinegal has stayed true to his goal.
Technology: It may not be one of the industry’s most hi-tech companies, but Sinegal has made sure that where it needs to be, Costco is at the forefront of technology. By embracing new forms of automation, and being willing to experiment with energy-reducing technologies, Costco has emerged as a technologically savvy retail leader.
Communication: “This is almost like show business,” says Sinegal. “I mean, every day you're opening up and it's show time.” Sinegal loves his job, and that is why no matter whether you are a cashier or a fellow CEO, he is willing to take the time to talk to you. A down-to-earth businessman, Sinegal makes sure that all the processes are in place to maintain a corporate system of accountability and openness.
Marketing: Is it odd that despite not ever spending a dollar on advertising, marketing is considered one of Sinegal’s success factors? Well, despite the lack of money spent on it, Sinegal knew what he was doing in terms of promotion. By creating a happy and loyal team of workers, and focusing on growing strong relationships with small businesses, Sinegal did, in fact, create a marketing machine in Costco.
“We’re not kamikaze pilots,” says Sinegal. “We want to do things in a sensible fashion.” To that end, Sinegal has taken the time to plan out his growth strategy. From the light bulbs in his stores to the population densities of the next cities Costco plans to move into, Sinegal leaves no stone unturned. And, it is those details that Sinegal says every entrepreneur needs to focus on. “Otherwise you’re just a hamster running on a treadmill.”
Shopping For Success How Sinegal Took Costco to the Top
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Dianne CramptonDianne Crampton is an executive leadership coach, team consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. - Visit Dianne Crampton's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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