Do I need toilet paper? I either forget to buy it when I’m walking the football-field-sized warehouse of Costco, or I don’t remember that we already have plenty at home, so that combined with the extra hundred packs I will now bring home my two young boys will now have enough to make an American Gladiators style pit in the basement rec room. Which they will do.
The Costco experience is always a distracting one. It doesn’t help that they pepper the aisles with new products and people in hairnets offering everything from energy drinks to sizzling sausage for you to try; go there around noon to graze the samples aisle and you won’t need lunch if you grab a churro on the way out the door. Yes, I know that they dropped churros from the menu recently but they will come back. If not, there will be overturned carts and burning RAV4s in the parking lot like it was Woodstock 99 all over again. Don’t mess with the few luxuries us suburbanites enjoy!
You can’t buy a house there, but you never know if you’re going to see a full-sized storage shed or walk-in greenhouse like the one I bought last month. Still, I’ve always dreamed of turning a corner of the store and finding a display similar to this Isuzu commercial from way back:
While you can currently purchase a car in a program with your Costco membership, the idea of buying a vehicle off the warehouse floor might be an interesting idea. Also, it could be a great opportunity for a certain car manufacturer that could use some help in a bunch of ways, not the least of which being brick-and-mortar sales locations.
A mega pack of tissues, some Kirkland sandals, and an EV SUV in your cart for the person at the exit to check off with a highlighter pen? Sign me up. Here’s how it could work.
Compact Sedans On Aisle 6
If you’ve ever noticed the graphics-covered vehicles parked in the forecourts or entrance areas of stores, you already know Costco sells cars – at least sort of. With your membership, you can get set pricing from many different brands at a discounted rate (typically around $1000 off the MSRP, depending on the overall cost of the car) through one of around 3000 participating dealers. With hundreds of thousands of cars sold through this program each year, Costco is one of the top sellers in the country, though they obviously aren’t really selling them through the warehouse locations themselves.
What I have in mind is to actually buy the car right then and there. Take a test drive, sign the papers, load up your month’s worth of Granola bars, then drive off.
It’s been done before. Sears was easily as big of a juggernaut as Costco in years past, an ever-present force in retail so large that by the seventies they ended up building the tallest office building in the world (and if you live in Chicago it is STILL called the Sears Tower, dammit). In the early fifties, the mega-retailer sold a car through their stores called the Allstate. Essentially a rebadged Kaiser Henry J compact with a few minor changes, it came loaded up with Sears products like their own brand of tires and battery. Since this was a Sears, you could get your Allstate car insurance right then and there since the agency was still under their umbrella.
Ultimately, the Allstate was not a market success, yet that doesn’t mean the idea couldn’t work. This was still the day of the traditional car sales outlet, and I think Sears was probably a bit too ahead of their time. A bigger issue might have been that the Henry J wasn’t a spectacular car, and the compact segment was hardly hot back in those gasoline-for-pennies days.
Costco is known for selling products under their “Kirkland” label that are often made by more well-known brands, yet sold with Costco’s no-frills nameplate that ostensibly gives consumers a better value.
There are a few car brands out there that might be able do this as well, and I can see one with potential that honestly could use a break or two these days.
Is It Just Me Or Is That A Dumb Name?
Much has been written recently about the Vietnamese automaker Vinfast, as the relatively new maker of EVs has had a bit of a rough launch here in the United States. More than one publication that tested the brand’s first model (the VF8, below) has declared the VF8 not really ready for launch. Primarily the issues have been electrical and software-related, such as screens shutting down or functions just flat out not working. Others have said the ride, handling, and interior materials could be better. Set aside the fact that the name of the brand sounds like “your car’s identification number is going quickly” or “the bald guy in The Fast and the Furious films going at a high rate of speed”.
Reading through most of the reviews it appears that testers do actually like a number of aspects of the car, and we’re all looking for a good value EV these days. Many of Vinfast’s issues could be fixed, or are in the process of being rectified; the problem is that these things take time and effort. As much as people criticize the US model Yugo, it could have been far, far worse: the importer Malcolm Bricklin said that he needed a separate assembly line in Yugoslavia and had to make over 1000 changes to the car to make it ready for American sale. Also, I’ve heard that Porsche engineers claim that to take a car from a “pretty good” handling machine to an “exceptional” one takes at least a year. Still, the change can happen; in the early sixties “made in Japan” was the punchline of a joke about poor quality and substandard performance, but in 1970 they brought us the 240Z. Are you familiar with that car?
Vinfast has been working on setting up a brick-and-mortar dealership network here in the states, and understandably it appears to be slow going. In my opinion, they need to focus any and all of their energies on making a better product; if not, they’ll run out of money and goodwill before they even get started. The brand currently means nothing to most American shoppers, and those who do know might have a negative opinion. Enter Costco.
If They Won’t Sell Vasectomies, Then At Least Sell A Car For Five Kids
One segment of the EV market that seems underserved right now is the large seven-seat SUV category. The few entries (like the Rivian R1S) are prohibitively expensive, and if there’s one thing that comes with having more than the average 2.5 kids it’s going to Costco. I’d like to start by offering the largest Vinfast – the VF9 – as the Kirkland Signature EV7.
The VF9 is a relatively attractive and modern SUV design with some quirky details that I find a bit objectionable and polarizing. If there’s one thing that a Kirland-branded Costco product cannot have, it’s polarizing bits. Up front, I’ve modified the nose and brought the giant lower side intakes down to make the front appear lower. The front “grille” has been shaped to look a bit like a cut-rate Range Rover; if there’s one thing Kirkland products want to be it’s “premium,” and faking that six-figure British SUV is a perfect way to do it.
In back, the wraparound taillight of the Vinfast is similar to the backlights on the Rivian. There are odd love-’em-or-hate-’em “bow tie” shapes on the C-pillars that fell a bit design-for-design’s-sake.
Again, a Costco car has to appeal to essentially everyone. I’ve covered the bow tie with black glossy panels to form full-width side windows also not unlike on Land Rover products, and some of the Vinfast’s fussy detailing on the rocker panels has been removed. The Kirkland SUV sort of emulates the latest Range Rover with a “loop” taillamp around the license plate, and I’ve removed the wraparound lights of the VF9. Note too that I’ve integrated the side marker lamps into the wheel arches, as on the front of the car.
In all, we’ve cleaned up the shape to become a Kirkland “hotel artwork” kind of car; something that at worst won’t offend and at best might call to mind a more expensive object.
Inside, I’ve read mixed reviews of the Vinfast materials quality; our own Thomas Hundal found the interior of the VF8 he drove to have supple leather and reasonable craftsmanship, while others have claimed that the materials called to mind a ten- or fifteen-year-old General Motors product. Ultimately, it probably won’t matter. Remember, most buyers are not nearly as picky as us often-snobbish Autopians, and I can virtually guarantee that the vast majority have as much interest in cars as most readers of this site have in Olympic water polo. For many a Costco shopper, if they can get a Rivian-type large SUV for thirty percent less than the cost of that American EV (which has not always been consistent with quality either) then they’ll sign the papers while the kids throw those ultra-cheap hot dogs at each other.
The important thing is to have Vinfast focus on improving the product to an acceptable, competitive level and letting someone else deal with selling it. What will that process look like?
You Got An SUV But Still Forgot The Vitamin Mega Pack
R U going to Costco at lunch? says the text from your better half. You’d likely rather get a root canal while deep cuts for Limp Bizkit play in the dentist’s office, but reluctantly you agree to grab the items on the list she’s about to send you.
After showing your membership card, you walk into the front lobby area where they sell anything from air conditioners to coffins (I’m not making that up) and you stop in your tracks: There’s a big kiosk in front of you with a big white SUV glowing under lights. You’ve seen the cars in the Costco lobby for years, but this display with KIRKLAND SIGNATURE Electric Vehicles on it tells you this is different.
This is not a car you’ve seen before. The styling is nice, the interior looks reasonable, and the yellow Costco price tag in the window says “$69,000”. That’s a no-haggle number, and not exactly a giveaway price, but you’ve web-searched the few EVs available that are this big, and they list for what you paid to buy your first condo.
The salesman approaches and explains the many features; he offers to take you on a test drive in one of the Kirkland SUV demos parked in a covered area out in the parking lot. You’re impressed with the thing, and before the salesman takes you back to his glass cubicle at the kiosk he shows you how two of the tire installation bays are now dedicated to EV service.
In the office, the salesman explains the financing and leasing options available to you. You ask if owners typically shop while they bring the car back for oil changes, and then catch yourself. There are Costco-branded accessories like a refrigerator; fitted luggage; tablets that fit into the dashboard or backs of the headrests; roof and trailer hitch-mounted carriers and more – all of which work seamlessly with the car. There are even shopping bags designed to fit the Costco carts that also fit perfectly in the cargo area of your Kirkland SUV.
You take the bait and order a grey one that will be delivered to you in a week. It’s Costco – can you really go that wrong?
Membership Has Its Privileges
Could the idea work? A car is just another product to deal with for many people, and shoppers tend to take the path of least resistance, so this kind of one-stop-shopping might work. I can’t tell you how many products I’ve purchased at Costco without really doing much comparison on the web or looking at reviews. I figure it’s a good deal, it has a warranty, and if it sucked this big retailer would have hell to pay with its customers. Conversely, any startup company will have a tough time of it at first, and Vinfast seems to have potential but a long way to go; they certainly don’t need to expend the horsepower on building a sales network. A partnership like this might be a winning combination for both parties.
Besides, I hate when I buy my churro or hotdog and stand there away from the screaming kids at the tables and eat it alone with nothing to do. I’d rather look at cars.
Our Daydreaming Designer Imagines A Whole Car You Can Buy Through Amazon – The Autopian
Our Daydreaming Designer Creates The Minivan Of Motorcycles – The Autopian
I find Vinfasts oddly compelling to start with, so I fully endorse this idea.
Ever hear of the Muji Car 1000? It was a K11 Nissan Micra, white with black bumpers, completely unbranded, sold in a household goods store.
I just posted it in the server! I’m surprised it wasn’t mentioned here
You’d have to buy a bunch of them at a time and then wait a half hour behind 10 people in line just to look at the car, and then wait in an another line for another half hour *after* you already bought the car to leave the dealership!
Besides, that thing doesn’t look like it can hold a lot of paper towels anyway 😛
You somehow made a Vinfast look better
Not to indicate that the Bishops work isn’t typically pretty great (because it usually is great), but…. Isn’t that a pretty low bar?
I mean, would Kirkland script on the grill deter you any more or less than Mitsubishi’s three stars or Kia’s stylized K-I-A?
stylized KS in an oval?
You mean KN?
Knine Inch Nails
Kirkland actually rates higher in customer loyalty than a lot of “name” brands
Yep. Most Kirkland products are at least competitive with name brands in comparison tests. and some manage to top the field – search for vodka comparison ratings and you’ll find KS French at #1, and it was $19.99 for a handle when I last visited the liquor-legal DC Costco in 2019. (And yes. it is vodka; but yes, there is a difference. If get it here if there wasn’t a state monopoly.)
cough*FISKER*cough
With very generous return policy.. I wonder what will happen to their bottom line if they sell EVs.
Or any car. I’ve had this one for ten years, It’s not really working for me anymore, can I have a full refund please.
I was standing behind a lady once who was returning a cake which only a quarter was left.. because it tasted funny. The cashier didn’t even batting an eye. I would totally watch a reality show on people’s excuses returning things.
Wife returned a box of granola type bars- only 3 left- the other ones got opened at an event and thrown out because they were rancid- didn’t want to put them in the car unwrapped, But yeah saw a guy a few weeks back with a house full of furniture on carts, I think he staged a home and sold it, dont’ know if he got his return done though
I knew a guy in college who bought a projector to use as his TV and exchanged it when the bulb went out. They gave him a brand new projector. I don’t know how many times he did it, but it kept him from having to buy a new bulb at least once, and he planned to do it indefinitely. I’d guess the furniture return went fine.
Oh yeah, my brother used to be a butcher at a big chain supermarket, usually worked the back cutting and packaging, but would cover the counter. Was not uncommon for someone to return a tiny, remaining sliver of a steak they had cooked and 99% eaten, complaining they didn’t like the taste.
“While unfortunately I can’t give you a full refund, sir, we stand by our 15 year prorated return policy. We can refund you <20% below market value> cash back, or <10% below market value> towards a brand new model.”
I hate myself for thinking this scheme up but I think re-branding the dealership trade-in model as an unlimited time/mileage guaranteed return policy would work for many people. Maybe that’s what Mitsubishi needs to do to stay alive.
pro-rate returns based on time and mileage, so they can manage losses and break even to the original sale or at least minimize bottom line damage.
That could make for an interesting used market. Instead of trying to predict depreciation, you’d have a solid floor ahead of time based on the pro-rated return schedule. You’d also have to really wonder about any deal below that price, since Costco accepts just about any return.
I’ve had Costco employees tell me they have a couple hidden FB groups where they vent. Some very entertaining stories about outrageous returns people brought in.
I really try not to take advantage per se, but I have done some returns that seem ridiculous at first blush:
1) Diapers; Don’t panic, they were unopened cases. We bought them in baby-prep time when Costco had them on sale for a month, but got so many at a baby shower we used those instead of the Kirkland ones so we could return the Kirkland ones. Got full retail (not the sale price) for the return too, that was an unexpected bonus!
2) half bag of Kirkland Select Dog Food; Took some time to try to allow our dog (110 lb German Shepherd, he ate some food…) to adjust but his stomach said “hard pass”. Not to get too graphic, but imagine chocolate milk coming out of a garden hose…
I have confirmed (with a family member who works for a car rental company) that booking through Costco Travel gets you preferential treatment on par with the highest tier of their loyalty programs. Basically you’ll get the nicest, newest car available in whatever class you reserved (or higher) and if supply is limited, you’ll get a car almost regardless of upgrade…
It the Neiman Marcus car for the masses! Costco could also get into 24 hour test drives, so when you buy more then your car can fit they will let you “test drive” the car so you can get everything home and check it out. Return to the cart return in the AM.
I’d love to see a Kirkland brand motorcycle, I’m picturing something like a Super Cub but more American.
Instantly all I see is a new Tote Gote with the Kirkland branding across the entire seat
Tip regarding an oversupply of toilet paper… it makes for a great imprompto autocross course. It won’t damage your car like a cone would if you hit it at speed and if you run over it it’s obvious when your “cone” goes from 6″ tall to 1/2″.
Rebrand a Toyota RAV4 Hybrid mid model and call it a day. Sell for 500 over invoice and Costco would probably sell more than Toyota.
Yea Costco would never sell crap from Fisker or Vinfast. Their whole model is to get the market leader to build a version at a specific price. Aldi would sell a Vinfast as a stunt probably.
This was what I was thinking when I read the headline.
If we are talking rebrands, Toyota is the obvious candidate. After all, they already sell Subarus and BMWs.
A Kirkland Signature car would be a car made by a quality company without said quality company’s branding, possibly in a unique format. It would be economical and reliable.
In my mind I imagine a Toyota Hybrid Pickup like Ford’s Maverick.
it would have to be a body style that’s exclusive to Costco. Sort of like BMW and Toyota do with the closed-coupe Supra.
oooh now you have me thinking about a Kirkland Bustleback CT5.
That would be the hardest part of this exercise for Costco. If it’s say booze, all Bourbon basically looks identical – it’s translucent brown liquid – whereas cars have very distinctive interiors/exteriors that’s hard to change. It would be tough to get a good car company to brand their stuff as Kirkland and be hit by the substitution effect once people figured it out.
Well you know how all CUVs look like one another for the most part, what if you got rid of the styling features and focused purely on aerodynamics and practicality? That’s how I imagine said vehicle would look.
Ala the discussion of the Saturn Astra yesterday, I could see this being a possible avenue for a captive import solution – Hyundai provides non-U.S. market models to be rebadged as Kirklands. That way, they don’t cannibalize sales of USDM Hyundais.
It could be co-branded like they do with the big bag of Kirkland Signature by Kettle brand potato chips and I think a few other items. Sell non-US variants in less popular body styles like MPVs. Costco would pick up the additional cost for crash testing that dealer sales would never be able to cover, then mark ’em down and sell ’em out. You’d want to wait for the car’s turn at the “12 Deals of Christmas” promo if you can, but the extra discount wouldn’t be so much that you’d regret it if you didn’t.
This is actually a really good idea. I’m thinking (because it’s what I’d want) if they partnered with Toyota to sell a Kirkland branded PHEV Corolla Hatch. It wouldn’t cannibalize the Prius Prime too much because most people don’t recognize platform sharing and would open a new income stream to Toyota for parts and service. It could be kind of win-win.
I chose Toyota because, as others have mentioned, Costco tends to partner with market leaders for the Kirkland Select line.
I wonder if it might solve a common enthusiast complaint too – it may not make sense to offer manuals on mainline U.S. market stuff, but captive importing other-market vehicles with them, even at a slight premium price, might.
Toyota does seem the most likely bet for sure.
I don’t see why that couldn’t work. Costco would be a ready-made dealer franchise and distribution network that could make the most out of a relatively low-take option. Even a few thousand examples would sell if it is easily accessible to a nationwide market.
And I’d imagine the self-selection of potential buyers would be gold for say Toyota.
If you want a reliable, well-made contemporary crossover to commute to work but otherwise couldn’t care less, a Toyota RAV4 from a dealership is where you’re heading; but if you are practical in a bordering-on-obsessive way and want say a small barebones hatch that can haul a lot of toilet paper and wear like iron, a Kirkland version of a Euro Toyota Verso is just the ticket.
One of the big downfalls (If I read and remember correctly) of the Sears Allstate was the stores’ complete inability to handle trade-ins on the purchase of a car. Costco will need to address the same issue.
That’s much easier to do these days. Back in the day there was no way to manage that as opposed to now where they just hit you with a take-it-or-leave-it number as CarMax does.
It’s Costco, they could just partner with Carmax and let them handle the used car side of the business.
Actually with the way things are going for Carmax, this might not be a terrible idea…
at least a Costco car would probably built by someone with a decent wage and benefits.
Let us not forget that Sears sold Puch motorcycles branded as “Allstates” and later, just called them “Sears” Motorcycles. Specifically the SV175 and SGS250. They were also called “Twingles”, because they were two stroke, two cylinder bikes, but shared one combustion chamber.
They also sold Gilleras and Vespas, also re-badged as Allstates. Montgomery Ward sold their “Riverside” brand of motorcycles, which were Benellis…
When I had my old Panther body cars, I always bought the Sears tires that were just Michelins under their name. Better warranty, price.
Costco rebrands SuperTech synthetic motor oil, which is Walmart brand motor oil.
Reality is, Costco would resell BYD.
That said, I know some folks that were T-Boned by an unattentive driver (on the phone) at an intersection rolling through at ~37mph in a BYD CUV PHEV the size of a RAV4 Prime 3 years ago.
Just a little bit of whiplash but the hit turned the car 180 degrees and destroyed the front end. Insurance paid out $20k to fix the front end. Today the car still runs pretty ruggedly.
I agree that it would likely be a Chinese manufacturer nobody is yet familiar with. I just used the Vinfast since it was a sort of known quantity.
oh that’s fair, i’m just saying it since i have some experience w/ BYD and have looked at some of the other manufacturers. Costco is known for choosing the best value and with something solid.
if kirkland were to say OEM Some air purifiers and other things, they’d likely be Xiao Mi.
We base most of our understanding on stuff we already know/are familiar with, so that’s totally fair.
Do you know who makes SuperTech for Walmart? I’ve always wondered as I’m there for cheapest-in-town Motorcraft…
I’m pretty sure it’s Warren Oil, same company as Coastal
I’m coming back to read the rest, but I actually have to go to Costco right now and wish like hell they could sell hard liquor here. I’d absolutely trust some of the less critical, not-quite-staples in their hands (basically anything that’s not whiskey or maybe gin). Rum that’s gonna take me four years to drink anyway? Bring it on.
“Rum that’s gonna take me four years to drink”
There’s the problem. You need to drink faster!
They totally do sell hard liquor in Costco in AZ. A godsend to all the soccer moms I know.
Note the tequila in the pic I put in the post.
So you live in a state that allows hard liquor to be sold in Costco? Thank goodness. I can’t do a Costco trip without liquid courage
In Michigan they sell hard liquor at Costco, but they have to allow non-members to purchase because it is illegal to require membership for alcohol purchase.
In addition to the Allstate, Crosley cars were originally sold through department stores and appliance shops in the late 1930s, basically the same exact retailers that were already carrying Crosley radios and refrigerators, they had regional company-owned service centers to take care of warranty work.
Like the Henry J venture, it didn’t work out that well and Crosley switched to traditional franchised dealerships after the war.
But, it seems like an idea with potential that just needs to be tried by someone who really knows what they’re doing.
During GM’s bankruptcy, Penske wanted to buy Saturn specifically to use as a sales channel for cars sourced from any automaker (mostly likely in China). Not exactly the same thing, but sort of, in terms of the brand just being a name and retail channel for a generic car built by whoever
The Henry J was not a great car, even for the time. Plus, as I said, it wasn’t like people were clamoring for tiny cars when gas was, what, 20 cents a gallon or so?
Exactly, Sears and Crosley just had the wrong products (even in the Depression, small cars were a tough sell, they had a few years of success right after the war, because they were new cars, and people were in a frenzy to buy any new car that was available, but once supply of big cars caught up with demand, that was over)
Like the vodka, they would find a good manufacturer and rebrand it. Kia Telluride maybe?
Why would Kia go for that when they can sell as many Tellurides as they want to all by themselves?
you want to bring logic and reality into this post?
I mean, this is basically how Tesla is doing it now, right?
Sure, you’d need the Costco Membership, but go in, pick the color / features, order, and delivered to store or to home. Service center built in, so the benefits of the dealership without as much of the downside.
“…I think Sears was probably a bit too ahead of their time.”
If you think that’s the case for the Allstate, wait until you find out about the Sears Motor Buggy:
https://searsmotorbuggy.com/index.php
I like the idea but I will bring up one little thing.. people have been up in arms about subscriptions becoming a thing on cars.. you’re suggesting I need a membership to Costco to even buy the vehicle in the first place!
yeah, but can BMW sell you a 30 pack of Nature Valley Sweet & Salty bars for ten bucks?
No, but they can sell it to you for $20 with a subscription to chocolate drizzle that’s technically already in the package for $5/month.
and the cupholders are blocked unless you pay the $10 a month fee
Its a membership that many suburbanites already have, so there isn’t actually an additional cost to a large portion of the potential audience. And the difference in perceived value is significant. Here, I’m spending $150 to save $1000, plus now I can shop at Costco. With subscriptions in cars, I already own the thing, but now I have to pay money to use it. There is no savings, no perceived value.
They should sell something that’s not already available here. For example, a 2024 Daihatsu Rocky, which is now a 5-passenger SUV. It would need a larger engine for the Americans, though.
Personally, though, if they were to bring the Copen Cero, I’d be all over it. They would be constantly sold out.
Costco has to much of a reputation for quality to consider a start-up like that though.
For now, yes, but I know that a lot of these Chinese and Vietnamese startups will improve. Without a dealer or service network, they’ll have a hard time of it.
Oh for sure, if they have the funds to stick it out, I thought I remembered reading something a while back though that made it seem like their commitment to the US market was wavering, they had paused some big plans or something. Or maybe I made that up, who knows!
Would I only be able to buy one in a 24-pack?
yes, there’s two different packs; one with 12 each in black, white, and blue while the other one is 12 each of red, silver, and grey
That sounds like every other car lot out there.
Are you sure it wouldn’t be 18 white/17 black/1 blue?
No, more like 15 grey, 8 white, and 1 black. Nobody buys cars in colors these days.
Just think of all the money you’d be saving! 🙂
“Honey, I’m home! I got a pack of briefs for you and a pack of electric SUVs for me!”
“Nice – White again?”
“Yup!”