Chapter
The Price of Gasoline and Costco's Business Model
35:37 - 39:41 (04:03)
The cost of premium gasoline is only slightly higher than regular gasoline, and Costco's success with selling pharmacy or prescription drugs was due to their innovative approach to competition. By offering premium gasoline at a slightly higher cost, Costco was able to break into the field of selling prescription drugs.
Clips
FedMart faced numerous obstacles, including pressure from interest groups, in its mission to sell pharmaceuticals and prescription drugs, eventually paving the way for companies like Costco to enter the industry.
35:37 - 37:20 (01:42)
Summary
FedMart faced numerous obstacles, including pressure from interest groups, in its mission to sell pharmaceuticals and prescription drugs, eventually paving the way for companies like Costco to enter the industry.
ChapterThe Price of Gasoline and Costco's Business Model
Episode#107 Sol Price: Retail Revolutionary & Social Innovator
PodcastFounders
The founder of Fed Mart discovered that the cost to acquire premium gasoline was only a few pennies higher than the cost of regular, so he decided to sell premium gasoline pricing it only a few pennies above the price of regular.
37:20 - 39:41 (02:20)
Summary
The founder of Fed Mart discovered that the cost to acquire premium gasoline was only a few pennies higher than the cost of regular, so he decided to sell premium gasoline pricing it only a few pennies above the price of regular. However, this led to regular gasoline suppliers cutting off the supply of gasoline to Fed Mart.