Lori’s Wigsite leveraged Costco services for savings, thriving while other dotcoms failed.
the prospective company, review, audit, visit again. Frankly, I think sometimes we drive our providers crazy. “But this is not just a referral program. We guard and protect the Costco members; we are the advocates. In the end, it all boils down to knowing the people involved and having a strong impression of trust with the provider.” Then there are the guidelines for pricing and benefits when structuring any new service, including: ■ The best pricing and value that the provider offers to anyone ■ The best value in a given industry ■ At least a 20 percent savings over the market leaders So the value is built in and guaranteed, the brand name is meaningful and Costco stands behind the relationship with the provider built on mutual trust.
For CEO Kerrie Page and her CTO (chief technology officer) husband, Jaret Hauge, running a small business requires constant monitoring of expenses. NovaSim, in Bellingham, Washington, is a management consulting company that specializes in constructing math models that help clients deal with specific operational problems.
“I was already sold on Costco for the personal side—well acquainted with the value that Costco offers—so the first thing we did when starting the business was to get the Costco American Express corporate card,” says Page.
The services that Page has taken advantage of are a mix of personal and business programs. Small-business line of credit, business check printing, business phone service, Web hosting, online investing, money market account and credit reporting are the primary services, and she conservatively estimates savings of more than $2,200 for the past year.
“I tend to turn to Costco first when I’m looking for a new product or service,” says Page. “We already had a Web site before Costco started offering Value Web, but in small business how much you spend matters. If I find something that’s a better solution, we switch. It was simple to switch Web hosts because Value Web had good instructions. And it is such a good value compared to what we were spending—a savings of nearly $500 a year.”
Another CEO weighs in on the services, this one from Denver. Jim Burness runs DealerMiles, a company that provides car dealers the ability to reward customers with airline miles.
“Savings from these programs is a no-brainer, year after year,” reports Burness, who sees his biggest savings on credit-card processing, business and personal use of the Auto Program and check printing.
But it is Burness’ unique insight as a former service provider that adds to his story. He had experienced Costco’s due diligence with an earlier version of the auto buying program.
“Having worked with Costco as a provider in the past, I’m certain that if Costco has selected a service, my homework has been done for me,” he says. “I don’t have to worry about doing any more research. I can safely go with that service and know that I’m getting the best level of service and the best deal possible. It is a great way for me to save a lot of time, because Costco has done all the vetting. I’ve seen it firsthand.”
Helpful service resources
A VISIT TO COSTCO.COM gives you access to a gateway for previewing Costco’s current service lineup via co-branded Web pages. Simply click on the blue “Services” link at the top of the home page. You’ll find an up-to-date directory of services there, along with information on each program and announcements of any special incentives.
There are also extras to be discovered about the various services, such as tools and tutorials that may prove helpful in evaluating needs or determining qualifications. Here are a few examples.
ShareBuilder Online Investing. The ShareBuilder site is rich in tools to help you invest or learn about investing. There are six main tabs on the page; the “Quotes & Research” and “Learn & Plan” tabs take you to essential resources. Investigate stocks, learn about risks and goals, read news about the industry or seek specialized tutorials.
Lending Tree. The Help Center on the Lending Tree site provides links to helpful articles on borrowing basics, refinancing, buying or selling a home, loans versus lines of credit and calculators that help you determine how
much you can or should borrow and how much your payments will be.
Costco Auto Program. Buying a car? The Costco Auto Program site is a great place to start. Read vehicle reviews, learn about new safety features and find rebate/incentive announcements. Do a side-by-side comparison of up to four vehicles, or calculate the trade-in value of your old car. Learn about financing, or try the advanced search function to learn the cost of your dream car, complete with all the desired accessories.—DW
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