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vs
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Has anyone else heard the rumor that Costco is opening another store in Greensboro at the Brassfield shopping center?

macca
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Haven't heard that, but it sure would be nice and convenient for us in this area, wouldn't it?

BTW: Welcome to the forum, vs!

Cracker Jax
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Welcome to the forum vs!!!!


I haven't heard that rumor, but I'm always up for a new "retail option"! ;)


 I just wish some of these stores would use the retail space that has been sitting empty for the past several years.....

macca
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I totally agree, Crackah! Isn't there a lot of empty space at Brassfield? I just figured (if it's true they're going in there) that they would be using that space. Makes sense to me! (of course, that doesn't mean it makes sense to anyone else!) :D:shock::D

bama80
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I think to get the full costco experience, they would have to buid their own building. Its bigger than the empty space in brassfield.

ff12
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Maybe D H Griffin can implode Brassfield and then Costco can go ahead.

macca
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Tee hee, ff12! We can always count on you ... :D
♥♥♥

macca
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Do they implode buildings that are that low to the ground, or do they just knock 'em down?

BreBre
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I've heard several people say that they thought Costco is better than Sam's Club. Is there any truth to that?

BreBre

StewartM
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BreBre Costco has more free food samples..:D..

I do think Costco has a better selection......

Baseball Buddy
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Costco Rocks.:dude:

Aeolius
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At one point, Costco wanted to buy beer directly from the manufacturer, instead of going through the three tier system, i.e. purchasing from a local distributor. As my paycheck depends on the three tier system, I will not be shopping at Costco.

macca
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Aeolius, Could you give us more info about this? I mean, was Costco trying to rip somebody off, or were they, in keeping with their business plan, trying to keep prices lower for their customers? Do we know that other such companies haven't tried to do the same thing? It seems kind of harsh to single Costco out for one incident, especially when I've heard so many good things about what good corporate citizens they are, and I know my personal experience with them has been favorable. Thanks.

Aeolius
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Here's some background information:
http://www.wweek.com/editorial/3228/7553/

In a nutshell, if Costco gets to buy direct, then everyone will want to. Then all the beer distributors will be looking for new jobs.

rasin
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I don't know all the facts about beer distribution and it is always sad when jobs are displaced and this effects you directly but I am uncomfortable with an artificial market system that requires the use of middlemen.  While I am fairly liberal in most things in most markets allowing the market to decide the most efficient method of delivering a product is the most desirable. (Almost a record on the use of the word "most" in a single sentence) 
 
If the inclusion of middlemen make the market more efficient than they will remain due to natural market forces, if they do not add to the efficiency of the market they probably shouldn’t remain.

When a market that is maintained artificially changes, as it will almost certainly occur, the change tends to be an abrupt change to the old system.  In my mind the propping up of old line manufacturing is an example, if the system was allowed to change over time there would have been a gradual change over instead of the large number of plant closings in a short period of time.  I realize it is a complex issue and some of the factors are beyond our control but the USA used tariffs, taxes, etc pretty aggressively to protect industries that should have been allowed to stand on their own much sooner.

Aeolius
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rasin wrote:
... I am uncomfortable with an artificial market system that requires the use of middlemen...If the inclusion of middlemen make the market more efficient than they will remain due to natural market forces...

Would you trust Costco, or any other supermarket, to check the code dates on all of their products and remove out-of-date food and beverages? How about bringing stock from back rooms up into the coolers? And then there is the matter of pricing, merchandising, advertising, on-premise promotions and night calls, etc etc. At least with beer distribution, the three tier system is not artificial in nature. Vaule is added at each step.

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If the supermarkets are expecting it of their distributors they would likely expect it from whoever delivers the product.  I see Lowes employees stocking shelves all the time with other products and many of these products have expiration dates how is beer unique?
 
Either the supermarkets value these services and will pay an extra price, or they will be provided at no extra cost to keep the business.  If not the supermarket should be able to go to the lower cost provider understanding that some of the extra services will not be provided and they may need to do them themselves.  If the supermarket cuts too many costs and the level of services suffers customers will vote with their feet which may result in the supermarket asking for the extra services to be added back.
 
Do beer distributors have any competition?  For example can any Budweiser distributor sell to the Lowes in Oak Ridge?

Last edited on Mar 25th, 2007 06:23 pm by

DOGGETTJA
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I don't know what the answer is because that is certainly what Walmart has done to everything they buy to the detriment of all competition. Drugstores all do it. They go directly to the manufacturer if they are big enough and get their drugs at the cost of the middle man. This type of mega business makes it very hard for smaller Mom and Pops to compete. Also does not necessarily mean you are getting the best price if the company is a monopoly. They charge  what the market will bear.




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