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Costco: King O’ The High Road

or Walmart: What a Bunch of Dicks

Walmart Says Thank You to Workers
from The New York Times

The gist: each employee gets an additional 10% ONE item, on top of their 10% discount, for the holidays. Each manager will meet with employees over the next weeks in some version of the Festivus “airing of the grievances.”

Yeah, because when you’re making $5.25 an hour in a dying rural town who’s unemployment rate is double digits, you’re really going to be upfront with your boss about working conditions. You know, sometimes a “thank you” can sound an awful lot like “fuck you.”

I’m posting this because over the past year, I’ve tried to examine my hatred for giant corporations. Under such close scrutiny, one company and its fairness-obsessed chairman has managed to warm the cockles of my black heart. CostCo. I know some of you would like to fling pickles at me for saying so ($5.99 a 48 oz. jar at the aforementioned!), but hear me out.

In light of the modern feudalism being forced on America’s working poor by companies such as Walmart, Costco is a shining example of employee relations. Workers make above minimum wage, nay, good money working for the warehouse stores. Costco’s health insurance program is one of the best around–of any US employer. It is the model that proves universal health care will work. I don’t even enjoy the benefits that Costco hourly employees enjoy. Uh, vision? 401K? Stock purchase plans? Seriously.

What of their infamous demands on suppliers? Yeah, well… as a business, you don’t have to deal with Costco. But as a worker, you may not always have many job options where you live. So if that’s what it takes to treat all your employees right, then that’s what it takes. While companies like Walmart slash costs–especially on labor–to maintain profit, Costco protects the experiences of employees and customers even at the cost of their own stock price.

As much as Costco’s chairman and founder, Jeff Brotman, helps people save at his stores, he is known in the Puget Sound for how he can get rich people to part with their cash for his causes, like the University of Washington, the United Way, and the Costco Scholarship Fund. And he’s a cool guy, and I’ve looked into the heart of his cellar–and judged him good (he’s a Pinot guy). And he’s taking on this country’s ridiculous alcohol distribution laws so hundreds of small wineries don’t have to.

No matter what the moronic Bushies will have you believe about the economy, it sucks right now. Just look at the US dollar against the Canadian dollar. Yikes. So, if you usually go big box because you’re trying to save, try finding it at CostCo, and stop filling the pockets of modern day slavers with your hard earned cash. No matter how close to your house they may be.

Best deal at Costco, besides tires: If you’re one of those people who has to have a label, buy your mass-market, over-priced Champagne here. (wait, is this a rec or not?) Costco runs labels like Veuve Cliquot and Moet’s White Star for a dollar over cost. But don’t go expecting small wine merchants to compete. These are what you call “loss leaders,” products whose low prices get you in the door to buy other things (and you will).

Also look for second labels from local wineries. Up here, K Vinters makes a special “Table Wine” through their Magnificent Wine Co. side project–look for the knife and fork. While some Washington wineries refuse to tarnish their cred by dipping below the $30 a bottle mark, Charles from K is laughing all the way to the fucking bank thanks to Costco.

Some people in the wine biz (especially in Washington with our 3-tier distribution system) hate Costco for their wine pricing. Me? Well, with capitalism… you can’t always have it your way, right? At least Costco knows how to treat decent, working human beings. And in that way, Costco is about the little guy like no other.


7 Responses to “Costco: King O’ The High Road”

  1. Kim Says:

    Funny. Just this morning, just a few short hours ago, I used CostCo as an example of how big box stores can turn a proft and still treat their employees well.

  2. Linda B Says:

    Although I can appreciate the benefits you mentioned about Costco, it’s that “lost leader” action that is killing small independent wine retailers like myself.

    I just found your blog and I’ll be marking it for updates. I like what you have to say!
    - Linda

  3. Maggie Says:

    Linda - thanks, and I feel your pain. I do. I’ve been there. But I don’t think Costco is killing small wine shops; and I’ve torn hair out over this. I don’t buy this arguement anymore. It’s false.

    The fault is ours because the hard, simple truth is: wine is not worth an extra trip for most people. Exhibits A and B:

    I know more than a few Washington WINEMAKERS who were hooked on a $14 Trader Joe’s Barolo a few years back. Now they knew damn well Barolo doesn’t cost $14, but they bought it, lots of it. It wasn’t important enough to them to not buy it and continue to support the small, local wine shops, EVEN THOUGH they are small local wineries. That is insane.

    But that is not Costco’s fault.

    When I was the buyer for a specialty food store, THE OWNER of the store would pick up wine deals he found at Costco, instead of going through me because it was a few dollars cheaper THAN HIS OWN STORE. The Marchesi di Barolo 1996 comes to mind specifically. Does that blow your mind like it did mine? Maybe.

    But that is not Costco’s fault.

    We have to do our part to make a special trip for wine as important as a special trip to the flower store or bakery. That is our job, not Costco’s. We must get the support of like minded independent distributors and importers. If we can’t compete on Veuve, we have to take a stand and stop carrying it. Distinguish ourselves as a supporter of grower champagne, distinguish our selection from that of Costco’s. Loss of business is not Costco’s fault.

  4. Dan Cochran Says:

    Your article touched on THE major problem for today’s workers; with the top management obsessed over their stock price on Wall St, they have COMPLETELY forgotten one basic fact: if workers aren’t being paid a living wage, the economy won’t sustain itself for long.
    Henry Ford knew this. He was once asked why he paid his workers more than the industry average. His reply? “I want my workers to be able to buy my cars, too.”

  5. fishy Says:

    I have to agree with Mags on this, You are the reason people come to small retail places, you and me and Mags. People who can answer questions. actually have tasted what is in the store. We rule this shit you know, Costco will never be able to carry all of the really interesting stuff. No pity party here just understand you are better and then do it.

  6. Christophe Says:

    Everyone has a point. But don’t forget one simple truth: Not everyone shops at Costco.

  7. The Wine Offensive » Blog Archive » Costco, Liquor Board, & More Important Things To Think About Says:

    […] See the ball, people. The state is the bad guy in this. And, yes, Costco is one of the good guys. But I’ve already spoken of this. You can disagree if you like. If you like to be wrong. tags: costco, seattle weekly […]

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