- Costco is one of the most dearest brands in America, celebrated by customers and employees.
- But the retailer manages to get incredible pressure without a promotional team and spend no money on advertising.
- Costco redistributes these funds to keep prices low and pay workers more ̵
Costco gets some of the best press in America.
"12 reasons to love Costco, as if you need more," reports HuffPost. "Costco got the name the best company to work for, for Duh", reads a Delish headline. Chef Samin Nosrat's name-dropped Kirkland Signature organic extra-oil oil in a recent interviewed Seattle Times, while Consumer Reports celebrated the chain's dishwasher pacs.
Read more: Costco's olive oil is celebrated by experts and Netflix's famous celebrity chef Samin Nosrat – and it's a great deal
Over the past month, Business Insider has published "9 times when Costco is better than Amazon," " Warren Buffett explains how Costco dominates in a crucial area "and" Millennials are obsessed with raising plants, and Costco is ready to capitalize. "
Most American retailers would spend millions of dollars to plant this type of coverage, with one blocking of commercials and press releases that highlight corporate performance. Obviously, the budget handler's promotional team deserves a raise.
But Costco doesn't have a PR team at all. And while rivals spend billions on ads, the company spends nothing on advertising.
Why does Costco believe advertising is bad?
"We consider the evil," Costco founder Jim Sinegal told The Motley Fool in 2013. "Because it costs money, all that will increase our price of goods is bad. We must have that kind of attitude. "
Amazon spent $ 6.3 billion in advertising and other campaigns in 2017. Goals spent $ 1.4 billion. Walmart spent $ 3.1 billion in advertising in 2018, up from $ 2.9 billion in 2017.
Costco saves an estimated 2% annually in costs by not advertising, allowing the company to reinvest the money in slash prices. This strategy has enabled Costco to keep prices extremely low and often undermine competition.
"We acknowledge and appreciate that media members are interested in Costco, its products and its trading philosophy," says Costco in a statement to Business Insider. "However, the company's successful business model is based on maintaining a lean operation. Therefore, there are no departments like PR and Advertising at Costco. "
This" tilt "operation is obvious to any reporter trying to get in touch with Costco.
Costco has reporters filling in a Google Doc and alerting them to they are unlikely to receive answers for up to 48 hours, usually this answer will be a couple of sentences or a variation of "no comment" from someone on the minuscule corporate communications law ending emails requesting that they not be identified by name .