A wholesale discounter like Costco has relationships directly with manufacturers to sell products in large volume, then use their own distribution network to move products to their stores. They are then able to pass savings on to consumers by having eliminated a link in the sales chain.
They have thousands of stores, each one moving an inordinate number of products. Their buying power is massive, and they are therefore able to get enough of a deal to make it worth their while to sell products and still make profit.
It is possible to negotiate directly with some distributors directly, and even some manufacturers, however you will need to take into account the amount of time spent in creating this deal when calculating your overall savings. There may be some places where you can save money (paper supplies and products, generally) and others where you cannot (soft drinks and other perishables, generally).
On a side note, I often found that it was more cost effective to work out a deal with local grocery stores than with Costco on soft drinks – I would always have them delivered in a pallet at the store’s sale price.)
Originally Posted: https://www.quora.com/How-do-you-get-better-pricing-than-what-one-can-buy-at-Costco
Originally Posted On: 2015-03-13