Lessons from Dick’s Drive-In on Minimum Wage, Employee Benefits

Shocker isn't it.

Another good one is Costco vs Sam's Club. Costco pays their employees more, but they also get significantly higher sales per employee and square foot.

Better paid and treated employees are happier employees. Happier employees are more productive, so everyone wins.
 
Shocker isn't it.

Another good one is Costco vs Sam's Club. Costco pays their employees more, but they also get significantly higher sales per employee and square foot.

Better paid and treated employees are happier employees. Happier employees are more productive, so everyone wins.

But is it a chicken or egg equation? Do they market to get significantly higher sales and because of that can afford to pay employees more.....

I have no experience with Costco as there are none around here how are they different than a Sams Club or BJs?
 
Shocker isn't it. Another good one is Costco vs Sam's Club. Costco pays their employees more, but they also get significantly higher sales per employee and square foot. Better paid and treated employees are happier employees. Happier employees are more productive, so everyone wins.
Costco draws a much more affluent, more educated clientele than Sam's. They spend more per employee because they have more to spend. The hourly wage of the employees may have a small impact on that, but as a member of both clubs I don't find customer service any easier to find wandering through a Costco unable to find what I'm looking for than at Sams. Trader Joe's also gets much greater sales per employee than most chain grocers and they pay staff more. But, like Costco, it's because their customers are richer more than because higher paid staff make customers spend more.
 
Costco draws a much more affluent, more educated clientele than Sam's. They spend more per employee because they have more to spend. The hourly wage of the employees may have a small impact on that, but as a member of both clubs I don't find customer service any easier to find wandering through a Costco unable to find what I'm looking for than at Sams. Trader Joe's also gets much greater sales per employee than most chain grocers and they pay staff more. But, like Costco, it's because their customers are richer more than because higher paid staff make customers spend more.

I have to disagree with your TJ's comment in general as I used to work for them. Our customers were not particularly rich, but they tended to buy more because the staff was friendly, honest, and knew that they had the authority to make decisions. The wages are good to start with, but go up dramatically if you are good with the customers. It's a great cycle and well worth it if you want to work in a grocery store. :-)
 
Costco draws a much more affluent, more educated clientele than Sam's. They spend more per employee because they have more to spend. The hourly wage of the employees may have a small impact on that, but as a member of both clubs I don't find customer service any easier to find wandering through a Costco unable to find what I'm looking for than at Sams. Trader Joe's also gets much greater sales per employee than most chain grocers and they pay staff more. But, like Costco, it's because their customers are richer more than because higher paid staff make customers spend more.

I haven't been to a Sam's Club in decades. We do have some friends that have a Sam's Club membership. They always comment on the better quality from Costco whenever we bring over Kirkland brand products.

I would say more affluent and better educated consumers prefer Costco because it is a better experience. Also, their checkout people are not playing around. I cannot recall ever seeing such efficiency in a checkout process.
 
Trader Joe's employees drop what they are doing with no hesitation and accompany the customer to the shelf where an item is located when asked on what aisle do I find "X".
No pointing and responding:
"it's on aisle 6."
Interesting about the pay increase for customer friendliness. I have noticed a marked friendliness there. I lived in California for 16 years, where they originated. When one finally opened in our area, I was so relieved. TJ's has a hang loose, casual we're just easy going fun folks feel. But they do hustle. No one is ignored and no "attitude" is on view.
 
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