Tuesday, July 19, 2005

Is being generous good for business?

HoustonChronicle.com (article)

But not everyone is happy with Costco's business strategy. Some Wall Street analysts assert that Sinegal is overly generous not only to Costco's customers but to its workers as well.
Costco's average pay, for example, is $17 an hour, 42 percent higher than its fiercest rival, Wal-Mart's Sam's Club. And Costco's health plan makes those at many other retailers look Scroogish. One analyst, Bill Dreher of Deutsche Bank, complained last year that at Costco "it's better to be an employee or a customer than a shareholder."

Good, I hate companies that chase easy profits instead of being an all around good store. It looks like Costco is a good company. I may have to go check them out again when I have a chance. I know that we bought our metal bowls there for extremely cheap a couple of years ago (I think it was in Iowa).

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