Costco philosophy about chicken prices: Keep 'em cheap

[Omaha Steve]

http://www.omaha.com/money/costco-philosophy-about-chicken-prices-keep-em-cheap/article_a694a0e8-7bff-541c-b07d-5349515f3fab.html

POSTED: FRIDAY, MAY 29, 2015 1:00 AM
The Seattle Times

SEATTLE — Perhaps inspired by Costco Wholesale’s recent decision to buy olive oil from the land of Socrates, Barclays analyst Meredith Adler asked on Thursday what may have been the most profound question in the long history of earnings calls.

“What is your philosophy about chickens?” Adler asked during a call that followed Wednesday’s release of Costco’s earnings. She was talking, specifically, about Costco’s wildly popular $4.99 rotisserie chicken — and whether it will start charging more if the wholesale price of chicken soars amid a massive slaughter of U.S. birds due to the epidemic of avian flu.

Turns out Costco does have a philosophy that would have been familiar to the ancient Greeks: Keep ‘em cheap.

“We’ll have to see,” chief financial officer Richard Galanti first said in answer to Adler’s question. But he then proceeded to describe the Seattle-area company’s worldview, delving deep into its identity as an inveterate discounter of rotisserie chicken.

FULL story at link.

[davidpdx]

1. I'm sure they are good

I don't like boned in meat much. I buy boneless chicken breasts from Costco here in Korea. We like to use them to make Thai food.

[meaculpa2011]

2. I often go into Costco...

just for the chicken. I almost always wind up buying other stuff. The chickens are spectacular and you can't make it at home for less money.

But I'm an compulsive bargain hunter. There are many Costco items that I can buy for less at my local markets. They're now planning to build a Costco a mile from my home.

We're very lucky to have many retailers nearby.

[TreasonousBastard]

4. The chickens fly out of my local Costco...

and I suspect they are a loss leader.

But, yeah, sometimes I wonder why I pay the annual fee when even gas can be cheaper elsewhere. Selections are limited, too.

Overall, though, it's a pretty good deal, especially when I need to buy in bulk for an event.

[mucifer]

3. Poor chickens

[Amishman]

5. darn, now I want one of their chickens for dinner tonight

sooooo good

[hollysmom]

6. eh I used to get them because their roasting area looked so clean but

I bought an Asian chicken salad sandwich 9my favorite, and as I was eating one half,a live roach crawled out of he second half - and I have not ordered prepared chicken since then from anywhere. This particular store refused to believe me. excuse me, I know what I saw.