jefffalcone
Contributor
Costco passes along the hosing- over to the folks who supply them, who just may very well BE a small outfit.
It's one of the prices of doing business with Costco, and has been a real financial hardship on their smaller suppliers, some of whom have been taken down by the "victimless" practice of "temporary purchases".
That's why there's so much turnover in their electronics suppliers; the price structure is shaved pretty dang thin as it is and having to eat a few items can negate the profits from hundreds of sales.
How does this happen?
What small outfits supply costco? I only see large major brands when I'm in there. How does a small outfit manage to keep up with the needs of one of the largest retailers in the world?