I would hope these two companies solve their problem quickly. I believe that there is a mutual interest and a valuable one too. We are in a recession, and the price of food and beverages does become an issue for many. However, I see both sides of the argument. Obviously, customers want lower prices and would support Costco. No one wants to pay more money for something than they have to. I think people would argue that Coca-cola is a huge company and they can afford to decrease the price of their sodas by a little bit. In addition, the company wouldn't want to lose a ton of business from all of the Costcos nationwide over a small price problem. However, from Coca-Cola's point of view, they would probably say that they are in a recession too. The company doesn't want to lose money either by decreasing the price of Coke products in all of the Costcos. They would probably argue that by them losing money, their stock values will go down, thereby hurting the economy even more. This could possibly lead to a longer recession. This is an argument that will need to be fixed soon. Who will win? what do you guys think?
Wednesday News Roundup, A Little Late
2 hours ago
8 comments:
I think that in the end, Costco will prevail. Coca-cola would not want to lose such a large, successful retail company as the purveyor of its products. Costco sells many goods, so it can survive without coke. If coke pulls its products out of Costco, then companies like Pepsi will take advantage of the lesser competition.
I feel like if people are trying to save money and shop wisely, they shouldn't be spending their money on soda anyways. It isn't a necessity, and instead of trying to reduce the price of soda Costco should be working on reducing the price of more important products.
I agree with both Kevin and Brian's points. I think the Coca-cola company probably needs Costco more than Costco needs Coca-cola's products. And if their products are too expensive for Costco shoppers then they will lose business either way. Yes, soda probably isn't the healthiest or cheapest beverage choice, but if that's what people want to buy, then it's their choice.
I agree with everyone here. Coca-cola seems more dependent on Costco that the other way around. They should really come to an agreement if Coca-cola doesn;t want to lose such a huge retailer store. True, people shouldn't be spending all their money on soda, especially at a time like this. But if it's what they want, then they should have the choice of getting it. This will require the cooperation of both sides.
"It wants its customers to be able to buy the items they need especially as it is becoming the holiday season."
More like Costco is seeing a decrease in demand for Coca-Cola products and is trying to bully the Coca-Cola Company into lowering prices so that Costco can sell at a lower price, get increased sales numbers, and still maintain about the same profit margin for the product.
Yikes!!
These to companies should make a truce and stop fighting. I agree with most of you. We are in tough economic times. They should settle on a reasonable price and live with it. Many people buy coca-cola, so i doubt that the price will affect sales too much.
Costco = powerful.
They have so much power over the companies because everyone wants to sell to them. For example, just check out their return policies!
I think that though the Coca-Cola company will lose money from the lack of restocking of its products at Costco, compared to its total sales around the world, its loss will be a low blow. The Coca-Cola company has been around for a very long time and can be considered a staple of American culture. However, in this economy it is understandable that in order to maximize its profits, the company is hesitant to lower prices.
-Molly Cheng
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