February 26, 2007

Costco Returns

KING5 News reported that Costco altered the return policy on electronic merchandise (iPods, HDTV televisions etc.).

Previously, a customer could return an iPod anytime after purchasing the item.

Due to rampant fraud, Costco changed the return policy to a 90 day window.

Is this an acceptable compromise, or is this a greedy company protecting razor-thin gross margins?

I think this is an acceptable compromise.

Profit per New Customer

It's common for folks to measure cost per new customer. Total Marketing Cost = $10,000. Total New Customers = 130. Cost per New C...