Becoming a Costco supplier
January 18, 2021 12:45 PM   Subscribe

Has anyone had experience becoming a supplier for Costco? Can you share what the negotiation process was like?

I'm helping a Taiwanese company that's looking to supply ice cream bars to Costco. We've gotten interest because their existing ice cream bar program is doing well.

Some regions have asked for samples while others want detailed information on our production/shipping process. Most of them are asking about our cost in the initial email.

Anyone have tips on how to approach a negotiation like this? What's the best way to price our product for Costco? What's their typical purchase volume and markup after buying our product?

More generally, what happens if they like our samples and we pass the audits? Is it just straight to purchase? How does the payment process work?

Any general tips/gotchas would be really helpful.

Thank you!
posted by typography to Work & Money (1 answer total) 1 user marked this as a favorite
Best answer: Their gross margin is teeny, I want to say 15% or so, depending on the product. Their most recent annual report says 11% overall.
posted by wnissen at 12:52 PM on January 18, 2021

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