Saturday, December 09, 2006
Costco vs. Sam's Club
Strap yourself in...this is going to be a doozy. Put your thinking cap on.
As I was reading the article about a new Sam's Club (Wal-Mart's membership store) going in next to Costco on East Sprague here in Spokane, several things popped into my head as I became more informed about the 'philosphies' of these two businesses. Of course, I'm going to share those nuggets.
The first thing I learned (I'm ashamed to say) is that I didn't know that Sam's Club was a membership store. I did know it was owned by the evil empire Wal-Mart, but didn't know about it's similarity to Costco in that you need to pay an annual membership fee to shop there.
OK, now to the two different businesses and their 'philosophies'. The paper cites several sources of these figures. You'll have to trust that I'm not re-copying the facts here falsely.
Now, when I first looked at these numbers, I wasn't at all surprised. I have heard that Costco employees get treated really well. Besides, when you shop there, the people are friendly, they're smiling and you can tell that they work hard. Now, to be fair, I can't remember the last time I ever set foot in a Wal-Mart or Sam's Club (although it might have been back in my college days), so I can't compare. Also, I don't know if the 33% health care number is skewed because many Wal-Mart employees get assistance from states on their health care (yes, from us taxpayers), but that's another post. If you want to learn more about that, go here.
I'll throw some more numbers out at you that compare the two companies' overall fiscal philosophy and then I'll share with you some initial reactions I had and some more facts I dug up.
Now, believe it or not, the very first thought that went through my head (I'm swearing to Buddha here) was that, "I'll bet Costco supports Democrats" (ha, you knew I'd turn this into a political issue, didn't you?). Now, why do you suppose I say that? Well, here's why. Now, I know I'm not the smartest person in the world and I know that I'm not an economist or politician, nor do I study the economy (like someone I know who will read this...so I'm anxious to hear from you, Will), but my basic understanding is this: Democrats are for the common working family. Republicans are for the shareholders. That may be an over-simplification, but I think that's generally true. I'm not saying good or bad, I'm saying those are the two different economic philosophies.
Anyway, back to the political issue. This is a perfect example of a Democratic vs. Republican Corporate America business model. Costco supports 89% Democrats, while Wal-Mart supports 72% Republican. Sources 1 | 2
While Costco believes in giving their employees a decent wage, which in turn still gives them a nice profit. Wal-Mart wants to increase their bottom line by cutting costs in the employee department still doesn't match the profit that Costco churns out even though they have more stores. Now, my theory on this (now, remember my credentials, above) is that if you have a workforce that is happy at their job and benefits, they will not only do a more efficient job, but they will do it better. Those employees at Wal-Mart don't make as much and don't have as good benefits, so they only work hard enough to not get fired. There's no motivation. Also, they will tend to just work long enough to get experience so they can get a better paying job somewhere else.
So, look at the bottom lines here. Costco made over $20 billion more this year than Sam's Club even though they have 46 less stores. Now, I'm sure there are more factors, I'm not that dumb. But, I think it's noteworthy. I believe there is a connection. Again, two different philosophies at work here. One company takes care of it's employees, turns out a decent profit and continues to grow. The other pays it's employees about 7 - 8 dollars an hour less, plus they have more to pay as far as health benefits and has over double the employee turnover rate.
Washington state has the highest minimum wage in the U.S. People thought that would hurt businesses. The verdict is still out, but it doesn't appear to be. More...
I think I've babbled enough. I would like to hear your comments below.
As I was reading the article about a new Sam's Club (Wal-Mart's membership store) going in next to Costco on East Sprague here in Spokane, several things popped into my head as I became more informed about the 'philosphies' of these two businesses. Of course, I'm going to share those nuggets.
The first thing I learned (I'm ashamed to say) is that I didn't know that Sam's Club was a membership store. I did know it was owned by the evil empire Wal-Mart, but didn't know about it's similarity to Costco in that you need to pay an annual membership fee to shop there.
OK, now to the two different businesses and their 'philosophies'. The paper cites several sources of these figures. You'll have to trust that I'm not re-copying the facts here falsely.
| Wal-Mart | Costco | |
|---|---|---|
| Avg. Employee Salary | $9.86 - $11.52 | $17 |
| Employees pay avg. of their health care premiums | 33% | 8% |
| Employee turnover rate | 44% | 17% |
Now, when I first looked at these numbers, I wasn't at all surprised. I have heard that Costco employees get treated really well. Besides, when you shop there, the people are friendly, they're smiling and you can tell that they work hard. Now, to be fair, I can't remember the last time I ever set foot in a Wal-Mart or Sam's Club (although it might have been back in my college days), so I can't compare. Also, I don't know if the 33% health care number is skewed because many Wal-Mart employees get assistance from states on their health care (yes, from us taxpayers), but that's another post. If you want to learn more about that, go here.
I'll throw some more numbers out at you that compare the two companies' overall fiscal philosophy and then I'll share with you some initial reactions I had and some more facts I dug up.
| Wal-Mart | Costco | |
|---|---|---|
| Membership Fees | $35-$100 | $50-$100 |
| Sales for fiscal 2006 | $39.8 billion | $60.2 billion |
| Number of stores | 550 | 504 |
Anyway, back to the political issue. This is a perfect example of a Democratic vs. Republican Corporate America business model. Costco supports 89% Democrats, while Wal-Mart supports 72% Republican. Sources 1 | 2
While Costco believes in giving their employees a decent wage, which in turn still gives them a nice profit. Wal-Mart wants to increase their bottom line by cutting costs in the employee department still doesn't match the profit that Costco churns out even though they have more stores. Now, my theory on this (now, remember my credentials, above) is that if you have a workforce that is happy at their job and benefits, they will not only do a more efficient job, but they will do it better. Those employees at Wal-Mart don't make as much and don't have as good benefits, so they only work hard enough to not get fired. There's no motivation. Also, they will tend to just work long enough to get experience so they can get a better paying job somewhere else.
So, look at the bottom lines here. Costco made over $20 billion more this year than Sam's Club even though they have 46 less stores. Now, I'm sure there are more factors, I'm not that dumb. But, I think it's noteworthy. I believe there is a connection. Again, two different philosophies at work here. One company takes care of it's employees, turns out a decent profit and continues to grow. The other pays it's employees about 7 - 8 dollars an hour less, plus they have more to pay as far as health benefits and has over double the employee turnover rate.
Washington state has the highest minimum wage in the U.S. People thought that would hurt businesses. The verdict is still out, but it doesn't appear to be. More...
I think I've babbled enough. I would like to hear your comments below.
Friday, December 08, 2006
Politically Correct
As I was waiting in line at the bank located inside of Fred Meyer, Shea looked up at me and unabashedly informed me that she had to go potty. Of course knowing that if I don't get her into a restroom within the next 2 nanoseconds she'll go right there and then, I leave my place in line in search for the nearest restroom.Upon entering the Men's restroom, I was glad to discover that they had an extra large bathroom stall equipped for the handicapped and gear for children and infants that most likely doesn't get used because Dads will pawn off the kids to the Mom for a bathroom trip whenever possible.
Anyway, in this stall was a changing station and directly across from the toilet was this little chair that folded into itself. This chair is designed so that you can strap your 'little one' into it while you take a dump.
I just found the sticker on the front of this chair pretty damn funny...especially the part where it says, "...while you take care of business". You know you live in a country where PC is so in when instructions that refer to you taking a gigantic shit politely state, 'taking care of business'. This country is repressed. If it were my sticker, it would read, "Put your kid here while you take a very large crap. But, if it's going to be very repugnant, you might want to send your child to the store for clothesline pins and Glade."
On the other hand, I don't know if I want to strap my kid in a chair directly across from the toilet while I lay pipe. Last thing I want to look at while I punch out a growler is my child. I don't get privacy at home, I expect it at a public restroom where thousands of others have 'dropped the kids off at the pool'.
OK, back to the 'taking care of business' reference...How do they know what kind of business I'm going to take care of? Do they think I'm a fan of Bachman, Turner Overdrive? I might be bringing my laptop and cell phone in there and actually conduct my web design business in there. In fact, Starbucks should put these chairs in their stores. People can bring their toddlers in, strap them in and they can whip out their laptop and conduct business without being disturbed by their kid.
I think they are on to something here.
Thursday, December 07, 2006
Happy 4th Birthday!
Silly String for Troops
There is a New Jersey woman who has started a campaign to raise money and silly string to send the troops in Iraq. You see, they use the silly string to detect trip wires. The military hasn't specifically said how they use it to prevent the insurgents to combat the technique...but they spray the string 10 feet in front of them and if it falls on the floor, no trip wires.
Cool.
I thought this was great. Something we can all contribute to the war effort. Silly string!
This woman, Marcelle Shriver has a son in Iraq and this is how she found out about the use of silly string. So, she is heading a campaign along with her church to donate money and silly string to send to the troops over in Iraq. Now, because the silly string is in an aerosol can, you can't send it through the USPS. But, she found a pilot who is going to fly the string over to Iraq in January. She is also gathering names and addresses of soldiers that need the silly string so that the string can be sent to the right personnel.
So far, she has about 1,000 cans in her garage to send over. I think she'll get more than that. I'll be sending her some cans and money to help with costs.
If you want to donate too, send checks made out to Marcelle Shriver or silly string (send via UPS Ground or FedEx Ground) to:
St. Luke's Church
55 Warwick Road
Stratford, NJ 08084
Cool.
I thought this was great. Something we can all contribute to the war effort. Silly string!
This woman, Marcelle Shriver has a son in Iraq and this is how she found out about the use of silly string. So, she is heading a campaign along with her church to donate money and silly string to send to the troops over in Iraq. Now, because the silly string is in an aerosol can, you can't send it through the USPS. But, she found a pilot who is going to fly the string over to Iraq in January. She is also gathering names and addresses of soldiers that need the silly string so that the string can be sent to the right personnel.
So far, she has about 1,000 cans in her garage to send over. I think she'll get more than that. I'll be sending her some cans and money to help with costs.
If you want to donate too, send checks made out to Marcelle Shriver or silly string (send via UPS Ground or FedEx Ground) to:
St. Luke's Church
55 Warwick Road
Stratford, NJ 08084
Wednesday, December 06, 2006
Trans Fat Ban
I'm surprised and happy to read in today's paper that New York has passed a ban on trans fats at all their restaurants. The ban goes into effect in July 2007. In my quest for a healthier lifestyle, I've educated myself on how trans fat is horrible for your health. In a country where heart disease is the leading cause of death, it's no surprise to find out that trans fat has been linked to heart disease.
Other countries have taken the initiative to eliminate trans fat from all their foods. Denmark for example has a LAW that says that trans fat in foods has to be below 2%. Of course, McDonalds has committed to reducing the amount of trans fat to 2% & below in Europe, but not here in the states. Strange.
Wendy's has eliminated trans fat from it's cooking oil back in August, so it is not necessary in foods. The company that owns KFC & Taco Bell has committed to remove trans fat by next summer.
I've read that McDonald's argues that they can't eliminate the trans fats from their foods because they can't replicate the taste. But, the reality is, it costs more to not use partially hydrogenated oil. Reason being, you can use partially hydrogenated oil longer, you don't have to replace it out of the fryer as often. So, the bottom line is, McDonald's doesn't care about killing you, it cares more about profit. But, the flip side to that is...if you don't know McDonald's food is bad for you, then you deserve to be fat and dead.
I think this trend in Europe to eliminate trans fat from their foods is because of education. People over there seem to be more educated (Case in point, we elected George W. twice) and they seem to be more active when it comes to change.
Change in this country doesn't happen until profits by the big corporations are cut into (Case in point: Ford, GMC...hybrids). We stick our head in the sand and let others make decisions for us and aren't actively reading ingredients. We don't research what we are eating and trust the FDA knows everything. Hey, I'm guilty of this in the past...but I'm trying to get better. Education, education, education.
Read more...
Other countries have taken the initiative to eliminate trans fat from all their foods. Denmark for example has a LAW that says that trans fat in foods has to be below 2%. Of course, McDonalds has committed to reducing the amount of trans fat to 2% & below in Europe, but not here in the states. Strange.
Wendy's has eliminated trans fat from it's cooking oil back in August, so it is not necessary in foods. The company that owns KFC & Taco Bell has committed to remove trans fat by next summer.
I've read that McDonald's argues that they can't eliminate the trans fats from their foods because they can't replicate the taste. But, the reality is, it costs more to not use partially hydrogenated oil. Reason being, you can use partially hydrogenated oil longer, you don't have to replace it out of the fryer as often. So, the bottom line is, McDonald's doesn't care about killing you, it cares more about profit. But, the flip side to that is...if you don't know McDonald's food is bad for you, then you deserve to be fat and dead.
I think this trend in Europe to eliminate trans fat from their foods is because of education. People over there seem to be more educated (Case in point, we elected George W. twice) and they seem to be more active when it comes to change.
Change in this country doesn't happen until profits by the big corporations are cut into (Case in point: Ford, GMC...hybrids). We stick our head in the sand and let others make decisions for us and aren't actively reading ingredients. We don't research what we are eating and trust the FDA knows everything. Hey, I'm guilty of this in the past...but I'm trying to get better. Education, education, education.
Read more...
