It’s no secret that Costco is famous for its low prices, but did you know that their liquor department has some pretty sweet deals? In fact, Costco consistently sells liquors at lower prices than other stores like Walmart and Sam’s Club. So how does Costco manage to keep their prices so low? The answer lies in the industry’s production and distribution systems—namely wholesalers, brokers, and distributors—and not in the quality of its products. Let’s learn here ‘How Costco’s Liquor is Different?’.
The product selection
Most people don’t think of Costco as having an impressive selection of wine or liquor. However, that couldn’t be further from the truth. Costco’s liquor department only carries name-brand products and is one of the few brick-and-mortar establishments with a top award-winning wine expert on staff.
As a result, every item in their extensive collection—from Champagne to Cabernet Sauvignon—is a quality product at an affordable price. And no matter what you’re looking for, they have it; they sell not just national brands but exclusive wines made specifically for them by smaller wineries that are hard to find elsewhere.
So if you love fine wine but hate paying high prices for it, why not check out Costco? You may be surprised by what you find!
The price
One of the things that make Costco’s liquor department different from its competitors is, naturally, price. The warehouse club sells its wine for about 20% to 25% less than other retailers do. But beyond sheer price, a lot of its liquor choices are unique to Costco stores and only available there. As noted above, that doesn’t just mean private label wines: It also means house-brand spirits (think Kirkland Signature Canadian whisky), as well as small-batch bourbons and limited releases from major distilleries. You won’t find them elsewhere. Plus, certain items—particularly those in high demand—can change without notice; when these sell out, they’re gone until it’s time for a new shipment to come in. Costco’s liquor department only carries name-brand products
The sales process
The first step in setting up any business process is to take a step back and ask yourself what you’re trying to achieve, how you want your business to appear, and who your target market is. For example, if you want loyal customers who come back for more and tell their friends about your products or services then you need to make sure that process happens. The most important thing about a sales process is consistency. You want customers to feel confident that no matter where they go or when they come in that everything will be as good as it was last time. So before anything else consider what makes your service unique, great customer service and consistency are at the top of my list!
Do whatever works best for you. Don’t get too caught up in perfection, just find something that works and stick with it! Don’t think just set something up now so that way down the road you have an established system already in place. Keep in mind customer service does not stop at the point of sale, taking care of existing customers can help keep new ones coming in so pay attention to them even after they’ve left your door. In salespeople forget it’s not just selling but buying to keep both parties happy!
The delivery process
In order to keep costs low, liquor stores buy their products in large quantities directly from manufacturers. But instead of warehouses, Costco has a massive space for storage in Canada that looks like a ski hill—as if you went to an actual mountain and carved out a huge circular area. To give you an idea of how much booze one of these warehouses can hold, there are enough bottles on hand to supply a city of 30,000 people for two years. That’s enough alcohol to get you drunk on every single day for two years straight… no fake IDs are required. The typical member isn’t likely to actually drink up their annual allotment in 365 days, but it does illustrate just how vast Costco’s inventory really is. They aren’t buying just 10 cases of wine, they’re buying thousands. This makes it possible for them to offer new varieties at reasonable prices, as well as older vintages – at some locations anyway (some states have laws against selling older wines).
While you may be able to find similarly-priced products at smaller grocery stores, especially while they’re running sales, there will be nowhere near as many options or brands. And getting delivery to your house? Also not going to happen! For most areas, Costco will still be cheaper than any store with a comparable selection… even when paying for shipping online. You’d basically need free shipping combined with another significant discount just to compete with what Costco offers its members locally!
