Klarinet Archive - Posting 000076.txt from 2004/03

From: "Buckman, Nancy" <nebuckman@-----.edu>
Subj: RE: [kl] Oriental Clarinets and Costco
Date: Tue, 2 Mar 2004 10:35:22 -0500

Hi Matthew,

Costco is in business to sell high quality merchandise at cut-rate =
prices. They are a wholesale/ membership business. They buy from the =
manufacturer and sell to the public directly, after the purchase of a =
membership in the wholesale club by individuals. It costs $45/year to =
buy a membership in the club. In return, the member gets to purchase =
top quality merchandise that the business buys in large quantities, with =
the money fronted by the members. Each site location is set up like a =
warehouse, with merchandise coming in original containers from the =
manufacturer. Sometimes that means you must buy a whole case of =
something or an extra large size because everything is purchased from =
the manufacturer in large quantities and sizes. That is how they are =
able to undercut the prices. When the last volume of Harry Potter came =
out, it sold in the bookstore for $35. It could be bought in Costco for =
$15. In all the years I have been a member of Costco (going back to =
when they were known as Price Club), I have never seen any "junk" for =
sale on the floor. These musical instruments are the only thing I have =
seen that qualifies as junk. =20

Costco is the kind of place where you CAN have your cake and eat it too. =
They sell food, drugs, tobacco products, clothing, jewelry, books, =
toys, TVs, appliances, carpet, furniture, swimming pools, cars, boats, =
vacations, real estate, etc. You want it, Costco has it. Since the =
membership is the foundation of the business, it is in Costco's best =
interest to provide what they say they will provide. Many small =
businesses buy their entire stock from Costco. That is why there is all =
this dissention. To find these types of poor quality instruments in =
Wal-Mart, for instance, is to be expected. They are a discount =
retailer, meaning they buy in quantity at wholesale price and resell to =
the public at a marked up price. This is exactly the type place that =
you would expect to find lower quality merchandise.

Musical instruments aren't normally sold in huge quantities to someone =
to resell at cost. The instrument companies don't want their =
merchandise sold that way. Even the large catalog companies don't buy =
more than a hundred or so of anything at one time. In the area of =
musical instruments, Costco has had Yamaha, Young Chang, Baldwin, etc. =
brand pianos on the floor (I have never seen a Steinway or Bosendorfer =
though). How they got them, I don't know, though I must admit I have =
wondered about that. They have sold high end student model Yamaha =
guitars and electronic pianos ( Yamaha, Casio and even a Clavinova). =
That is why it is so unexpected to come across First Act and Simba =
instruments. They don't fit the mold. I hope this helps you to =
understand some of this capitalism.

Nancy

Nancy E. Buckman, CPO, AFO, Technical Assistant
School of Health Professions, Wellness and Physical Education
Anne Arundel Community College
Arnold, MD 21012-1895 USA
Phone 410-777-2316 Fax 410-777-2233
E-mail nebuckman@-----.edu

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