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products. These days, though, nobody doubts that Kirkland stands for quality.
80 percent of them. And while these members love the low prices they receive, there’s another piece of the puzzle that ensures that membership renewal figures routinely top 90 percent. “QUALITY GOODS AND SERVICES” Junk is junk, no matter the price. Costco may offer rock-bottom prices, but they sell only quality goods. For a new product to make it onto the shelves at one of Costco’s stores, it goes through a thorough vetting process. Even in Costco’s enormous warehouse-style locations, space is at a premium. Putting a substandard product on the shelves doesn’t just mean a better alternative can’t go there. It also hurts the retailer’s reputation as a whole. Most companies’ in-house brand is thought of as a lesser alternative to the big names — not so with Costco’s Kirkland products. Wary of customer skepticism, Kirkland occasionally co-brands its
members rather than simply customers, Costco shoppers are part of a club. This feeling, in turn, promotes a brand loyalty that any company would kill for. Costco’s members are so enthusiastic that even their pizza has a cult following. Frequent member visits also create a large sales volume, which relates directly to another part of Costco’s message. “THE LOWEST POSSIBLE PRICES” There’s no denying that loyalty plays a role in Costco’s success, but one of the things that loyalty is based on is incredible prices. Early in their history, Costco bet that if they lowered markup, they could make up for it in volume. Most supermarkets apply a 25 percent markup, and that number is even higher at other retail establishments. Costco, on the other hand, never marks up a product more than 15 percent.
Costco’s emphasis on high standards also affects their services, and perhaps that’s most apparent in their print magazine, The Costco Connection. It is the third-highest circulated monthly publication in the country, mailing nearly 9 million pieces per month. Sure, that’s a lot of pages to print, but the company knows that direct mail drives business in a way that a digital version never could. In fact, 56 percent of readers end up buying something they come across in the magazine. “CONTINUALLY” The final aspect of Costco’s mission is that they never rest on their laurels. If there’s a way they can improve the experience of their members, they do it. Now that’s what we call living your mission.
Instead of relying on a high markup to create profits, Costco’s memberships generate roughly
BOOK REVIEW Find Your Purpose and Realize Your Potential Simon Sinek’s ‘Start With Why’
purpose, live their lives with intention, and realize their potential and the potential of their business.
Here’s a big question for you: Why do you do what you do?
As Sinek puts it, everybody knows what they do. Whether that means you jumping out of bed and cooking some eggs, or a company selling IT solutions to small businesses, the “what” is easy. Fewer individuals and organizations know how they do what they do — maybe a business offers a unique selling proposition, and maybe an individual keeps a strict, productive schedule. But rarely does a person or organization truly know why they do what they do. Pretty much everyone, Sinek argues, is doing everything backward. Instead of filtering everything we do through a singular purpose (that ever- important “why”), we’re floundering on the surface level, going through the motions without inspiring ourselves, our co-workers, or our customers.
Sure, you wake up, take a shower, get ready for the day, and then head off to work. You deal with your employees (or your boss) and try to make a dollar or two for you and the company. Then, you go home, spend time with your family, maybe watch some TV, manage your personal affairs, and go to bed.
Sinek argues that when we think from the outside in, we may be able to communicate vast amounts of data or selling points to potential prospects or friends, but we can’t drive behavior. What changes the way people think and act is the “why.” If you don’t know the purpose behind your own actions, then obviously, it’s going to be impossible to influence anybody to do anything, much less buy into your business. Sinek argues that his “Golden Circle” — in which we start with why, move to how, and end with what — is simply a codification of the way all great people and organizations have thought through history. Martin Luther King, Jr., the Wright brothers, and Steve Jobs all realized their potential by starting with that simple question: Why do you do what you do?
But again, why ?
What about your business? Why do some companies and organizations drive innovation, reaping massive profits, while others struggle to barely stay afloat? It was questions like these that drove Simon Sinek to write his influential book, “Start With Why: How Great Leaders Inspire Everyone to Take Action,” a vital read for anybody seeking to hone in on their
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