Costco is famous for attracting customers with special memberships, large purchases, and unbelievable bargains. Many Costco buyers, however, are unaware of Costco Business Centers, which can also help them save money. So, what exactly is a Costco Business Center, and why should you consider them? I did some study and came up with the following findings!
What is a Costco Business Center?
According to a definition from QuerySprout, a Costco Business Center is a company
“targeted towards small business owners for buying a range of office supplies, drinks, and snacks that can’t be found at traditional Costco Warehouses. Currently, there are 17 Costco Business Centers operating in the US, which anyone can visit with a Costco membership.”
The goal of these centers is to make office supplies as accessible as possible for business owners; and cheap too.
What Is The Difference Between A Costco Business Center And A Costco?
First off, what is a Costco?
A Costco, Costco Wholesale Corporation in full, is an American retailer of warehouse clubs and wholesale clubs, which sell large amounts of items at substantially discounted prices to members who pay an annual membership fee. It is one among the world’s largest merchants.
Basically, a Costco Business Center is often smaller than a conventional Costco, with the purchasing experience simplified for customers.
Despite its reduced size, Costco Business Centers are said to provide unique things.
Furthermore, 70% of the items offered in a Costco Business Center are not available in a standard Costco, providing an incentive for customers to visit.
Read Also: BUSINESS ADMINISTRATION: Definition and Career Overview
A Costco Business Center also has fewer facilities than a standard Costco, which means that petrol stations, free samples, pharmacies, hearing clinics, and photo services are not available.
Some things sold at normal Costco, such as apparel, toys, books, and gadgets, are reportedly unavailable at Costco Business Centers.
In addition, Costco Business Centers caters to businesses by focusing on refreshments, office supplies, and cleaning supplies.
Food courts may still be available at some Costco Business Centers, with customers reporting reduced lineups and shorter wait times.
What are the hours of operation for a Costco Business Center?
The operating hours of a Costco Business Center differ from those of a conventional Costco. Costco Business Centers, for example, are open Monday through Friday from 7 a.m. to 6 p.m., Saturday from 7 a.m. to 4 p.m., and Sundays are closed.
However, the Costco Business Center website is accessible seven days a week, 24 hours a day.
Is it possible to shop for Costco Business Center items online?
Yes, you can place an order for delivery to your home or office from a Costco Business Center online, by phone, or by fax. Costco Business Center has a website that is open 24 hours a day, seven days a week to make it more accessible to customers.
Basically, Costco Business Center online orders of less than $100 (before tax but before fast savings) will be charged $10 for delivery.
Costco Company Centers might take anywhere from 2 to 5 working days to arrive at your house or business.
Pros of Shopping at Costco Business Centers
There are a number of significant advantages to buying at these Costco business centers. Small business owners and their employees were intended to benefit from these perks, but there’s nothing prohibiting you from doing so as well.
#1. There Are No Crowds
Because it’s primarily business owners who come here with big basket sizes (nearly 3x greater! ), these business centers see much less foot activity. Also, these individuals are rarely seen in stores because delivery accounts for half of the overall purchases.
Furthermore, these stores are designed to be light and easy to navigate because small businesses hardly want to deal with the crowds of customers in a typical Costco warehouse, checkout line, or parking lot, As a result, the business centers receive one-seventh to one-eighth of the traffic that a conventional Costco receives.
#2. Checkout Times are Shorter
Due to the fact that there are fewer people shopping in the first place, checkout times are also shorter. Costco strives to keep checkout lines moving as rapidly as possible because business people don’t have time to deal with long lineups.
#3. Parking is Easier and Quicker
Costco ensures that there is always adequate parking for its customers, close to the store’s entrance to minimize walking time and effort. Small company owners don’t have time to drive around looking for parking, therefore Costco makes sure there is always enough parking for them. This is only possible because there are fewer people visiting these commercial centers, so parking is much easier to come by.
#4. It Opens Earlier
To serve the needs of small business owners, these business centers open much earlier in the morning. If you’re a morning person, this is ideal.
The Business Center opens at 8:00 a.m. and closes at 6:00 p.m., as opposed to a conventional Costco, which opens at 10:00 a.m. and ends at 8:30 p.m. This is because small businesses require more flexible hours that meet their schedule.
Cons of Shopping at Costco Business Center
Unfortunately, not everything is perfect when it comes to shopping at these business centers. There are a few drawbacks to be aware of as well.
#1. It Closes Early on Weekdays
Because these hours correspond to typical business hours, these business centers open much earlier in the mornings (8 a.m.), but close as early as 6 p.m. on weekdays. Costco warehouse clubs, on the other hand, stay open until 8:30 p.m. to appeal to the after-work population.
#2. They are Closed on Sundays
This is a huge put-off because that’s when we generally do our shopping. However, because you shouldn’t go to a regular Costco on Sundays (the crowds are insane! ), you should plan your Costco business center visits for weekdays or Saturdays. (On Saturdays, the store is open from 9:30 a.m. until 6:00 p.m.). If you only shop on Saturdays, the business centers are a significant advantage because the regular Costco is much busier.
#3. Catalogs are Condensed
It’s possible that the business centers won’t feature all of the things that you’re used to finding at a regular Costco. Clothing, books, movies, gadgets, alcohol, toys, gardening/yard supplies, furniture, kayaks, shoes, bedding, home decor, deli, and other things are frequently absent from business centers. Jewelry, athletic goods, CDs, and seasonal merchandise are also not available.
#4. Departments are Missing
Costco Business Centers additionally differ from ordinary Costco warehouses in that they lack ancillary sections such as pharmacies, optical and hearing aid services, photo labs, bakeries, tire shops, and so on. They do, however, have the Print Shop. They sometimes forget about the Food Court, but luckily, a popular business center in San Francisco has one. A subsidized gas station is also less likely to be found in Costco business centers.
#5. A Different Design
Because they sell various products that aren’t available in your typical warehouse club, the business centers have a particular layout to appeal to only business merchants and their demands (like cleaning supplies). As a result, your products may not be where you expect them to be. Consequently, it will take a few weeks to adjust.
How Do I Join Costco as a Business Member?
If you’re interested in a Costco business membership, you can apply in person or online. To sign up, you’ll need documentation of your business, such as a business license or three business-related documents.
However, to activate your Costco business membership, you must visit a Costco Warehouse and have your documents verified by a member of the Costco staff.
If you wish to resell things bought at a Costco or a Costco Business Center, you’ll need a Costco business membership to do so legally. You will receive a free additional Costco membership card with your Costco business membership.
Reasons Why A Costco Business Center Is So Cheap
The following are some reasons why Costco Business Centers and Warehouses are cost-effective.
#1. A Bare-Bones Store Design That Is Consistent
If you’ve ever visited a Costco warehouse, you’ll notice that there’s a reason they’re called warehouses: the design is minimal and has only the most essential features.
Costco warehouses, in fact, make extensive use of daylight to lighting the inside of the shop during the day, saving a significant amount of money on power expenditures.
Costco is able to keep its operational costs low as a result of these efforts, and pass the savings on to customers in the form of lower prices.
#2. Annual Memberships Bring Most Of The Profits
Customers can sign up for a yearly membership (for a nominal annual fee) that allows them to a variety of daily and monthly discounts, as well as special members-only cards, at Costco.
And because most consumers join Costco to take advantage of low prices, membership earnings account for more than half of the company’s annual profits, allowing it to cut expenses even further.
#3. Costco Does Not Do Any Advertising
There’s a reason you’ll never see a Costco ad in any kind of digital or print media. Costco simply does not invest in advertising and instead relies on word-of-mouth marketing to grow its client base.
As a result, it saves a significant amount of money that would otherwise be spent on advertising efforts and invests it in cheaper product prices.
#4. Narrow Range Of Product Categories And Variants
Despite the fact that the sheer scale of Costco warehouses creates the appearance that the company sells a wide range of products, this is not the case.
Costco sells a limited number of product categories and variants, which it purchases in bulk from manufacturers at very low costs upstream. This permits them to charge lower-than-average prices for their items.
At a Costco warehouse, for example, you’d discover bundles of only one size of toothpaste rather than all the sizes made by the toothpaste manufacturer.
#5. Very Little Mark-Up On Products
Retailers purchase products from manufacturers at a certain price and profit by marking up that price for end-users. Costco, on the other hand, only boosts prices by a modest margin, reducing its own earnings to give customers additional savings.
In the broader view, this doesn’t hurt Costco much because it makes up for the lesser revenues with the annual membership fees that its members pay.
#6. Costco Deals With Theft Quite Effectively
For a number of big shops throughout the world, commodities theft accounts for a significant amount of their losses. Costco effectively combats this by using anti-theft techniques that minimize losses (and thus expenses).
These include designing the warehouses to have a single entry and exit point and having store staff verify receipts of consumers leaving the business to catch probable theft incidents.
#7. Costco Keeps Its Employees Happy
Employers spend a lot of money on hiring, retaining, and terminating staff at retail companies. Costco, on the other hand, is recognized for keeping its employees happy by paying a high minimum wage of $15 per hour and providing a variety of benefits such as health insurance.
This reduces the costs of constant hiring (and dismissing) and thereby passes the savings on to customers.
#8. Costco Has A Very Efficient Supply Chain
The efficiency of Costco’s supply chain is one of the main reasons for its low prices.
Costco places a strong emphasis on lowering the number of ‘fingerprints’ on its products, or the number of middlemen between the point of manufacturing and the ultimate user.
Costco decreases the expenses of delivering a product from the manufacturer to the client by using cross-dock distribution facilities, lowering the price of the goods.
#9. Low Food Prices Keep Customers Buying For Longer
If you’re a Costco member, you’ve probably been taken aback by the extremely low costs of goods sold within Costco stores. An 18-inch pizza and a can of Coke, for example, cost only $10 and $0.69, respectively.
Food goods are ‘loss leaders,’ meaning they bring in losses but have the unintended impact of keeping customers inside Costco warehouses for extended periods of time.
Customers will buy more high-margin products as a result, offsetting the loss from the low-cost food items.
#10. Costco Has Its Own Low-Cost Private Label Brand
Costco offers a private label brand called Kirkland Signature that sells products that are much less expensive than similar products supplied by other companies.
According to The Wall Street Journal, Costco introduces these products whenever it discovers that other businesses are selling a product for more than the lowest possible price.
Kirkland Signature has been a popular brand among Costco members over the years.
#11. Gas Stations and Warehouses Are In Close Proximity
Costco places gas stations close to warehouses and stores on purpose to lure consumers who only wanted to buy gas to visit the warehouse and buy a variety of other things.
As a result, Costco is able to finance its lower-cost incentives and discounts by selling a higher volume of goods (with a better profit margin than gas).
#12. Costco Buys High-End Non-Perishables On Consignment
Because managing inventories of high-end non-perishable goods like electronics are costly, Costco solves the problem by purchasing these things on consignment.
This means that Costco only owns the inventory (or stock) of these items once they have been sold, avoiding any costs involved with inventory handling and maintenance.
How To Get Free Shipping At Costco
If you love the sound of free shipping like I do, here are some methods you can use to achieve that at Costco
#1. Costco Grocery Delivery
Costco Grocery is the newest cost-effective offer for Costco members!
Members may get free delivery on orders of $75 or more with this shipping promotion. As a result, make sure you use this deal for any major stores.
However, not only does Costco Grocery offer free delivery on orders of $75 or more, but it also guarantees a two-day shipment time for all dry and non-perishable goods.
Consequently, besides saving you money, this incentive will eventually expedite the shipping of your goods.
Meanwhile, if your order is less than $75, the delivery price is only $3, which is still a great deal! Costco Grocery is exclusively accessible in the United States’ continental territory.
You can find out more about this offer by visiting their official website.
#2. Costco Instacart Same-Day Delivery
Costco offers a different incentive for individuals who require their items the same day as part of their Costco Grocery program.
Costco’s Same-Day delivery policy, like Instacart’s, aims to provide members with a quick delivery service. Costco members, according to our research, are eligible for free same-day shipping!
Unfortunately, same-day service is only available in major metropolitan areas at the moment.
You can check to see if your location qualifies for free same-day shipping! Costco will let you know if your zip code is available by simply typing it in.
Oftentimes, these benefits are only available to Costco members.
Non-members, on the other hand, may be eligible for a free first-time same-day delivery!
In other words, you can use the service and get free delivery even if you are not a Costco member.
Meanwhile, you can only obtain the free delivery once, and you must live in a zip code that is eligible for same-day delivery.
Following your first free shipping, delivery with this scheme will cost $5.99, plus an additional 10% service charge from Instacart.
This free delivery option is available to both members and non-members who spend a minimum of $35.
#3 Costco Special Offers
Costco will promote free shipping discounts for its members on occasion.
Keep an eye on your membership email deals and sign up for email notifications on a regular basis.
This will ensure that you are constantly aware of the most recent Costco promotions, including free shipping discounts!
You can also sign up for the ‘Giving Assistant’ app. Instead of sending you emails, this app will send you SMS notifications with the most recent Costco deals and discounts.
#4. Free Shipping Coupons
Though it’s unclear whether Costco explicitly gives coupons for free shipping, they do have a slew of other coupons that will deduct the cost of delivery off your transaction. This will be the equivalent of receiving free shipping!
In addition, if you subscribe to Costco’s mailing list, you will receive a $20 coupon. This is such a simple and quick way to recoup the money you lost on the shipping price!
After their expiration date, discounts, promotions, and deals will no longer be effective.
#5: Instacart’s Refer-A-Friend Program
This strategy, like method 4, will not directly affect your shipping, but it will reduce the overall cost of your business orders, resulting in a price that is comparable to that of free shipping.
Costco has teamed with Instacart, a delivery service.
Instacart has a “refer a friend” program, which means you’ll get a discount on your next order if a buddy signs up after you refer them.
The Costco Business Center in Summary
Why did Costco construct these Business Centers? They were created with small businesses in mind, such as restaurants, caterers, convenience stores, vending machine operators, hotels/motels, gas/service stations, and professional offices (Legal, Accounting, Engineering, Medical, etc.)
The Costco Business Center fills a gap for business members who require the following services:
- Business hours that are more convenient
- A larger selection of business-related items
- Less consumer traffic.
- Delivery to their location of businesses
- Easily Accessible and convenient location.
- Everyday low prices
What’s more, guess what? Many of these advantages are also beneficial to ordinary families and traditional consumers! Especially the part about having to deal with less consumer traffic.
Do you live near a Costco Business Center? Have you ever tried going to one? (Keep in mind that they are closed on Sundays.) If that’s the case, will you be relocating all of your Costco shopping to these business locations to save time and effort? When you add in parking and checkout times, business centers can potentially decrease your entire shopping time in half.
What Is a Costco Business Center
Costco Business Center is a business targeted towards small business owners for buying a range of office supplies, drinks, and snacks that can’t be found at traditional Costco Warehouses.
How Many Locations Do Costco Business Centers Have
Currently, there are 17 Costco Business Centers operating in the US, which anyone can visit with a Costco membership
What Is the Difference Between Costco Business Center and Costco?
“The Costco Business Center in Ontario, California, is like a regular Costco warehouse store, but it’s set up to meet the needs of business and restaurant owners.
How Much Does It Cost to Add Someone to Costco Business Membership?
Business Members can also add more cardholders called “Affiliates” to their membership account for $60 per year per Affiliate. Each Affiliate also gets one Household Card. You can add affiliates to your membership when you sign up online or at the Costco membership counter, or you can do it later.
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