v3 Chapter 774： 3 future Fortune 500 companies (1/2)

Peter Lynch smiled and said: ”This company happens to be in California, and its store in San Francisco is within 50 meters of our company. That's why it was able to find out, and the company's warehouse-style membership store model is theirs Original and unique in the world, the company observes and analyzes that it can try to invest.”

Xia Yu nodded slightly to express his understanding, but in any case, it is worthy of praise to include this unlisted company.

He was also a little curious about what the situation is like at this time, the second-largest retailer in the United States, one of the top 50 retail giants in the world, which has different names at this time.

With a little expectation, Xia Yu glanced carefully, and the corners of his mouth couldn't help but curl up.

PriceClub!

The Chinese translation is Price Member Store.

The company was founded in 1976 by brothers Sol Price and Robert Price, and is headquartered in San Diego, California.

This company has a unique business philosophy. By establishing a shopping club, gathering the scattered purchasing power of individual members, and uniformly placing orders with manufacturers in large quantities, it not only saves distribution costs, but also achieves economies of scale. This is somewhat similar to the later generations of domestic group buying middlemen.

Only because of capital constraints, the Price member store has no extra decorations, almost no advertisements, and is set up in a convenient location to save costs.

At present, it mainly serves small enterprises. This is why there are such stores 50 meters away from Polaris Capital. That area happens to be densely packed with enterprises and the transportation is very convenient.

”Costco hasn't appeared yet, it's just the early-stage Price member store, it's really small enough!”

A smile flashed in Xia Yu's eyes and thought in his heart.

Smaller size is better, as long as the model is okay, then it has the value of capital catalysis.

Now the size is small, but it is easy to acquire and the cost is low!

And most importantly, Xia Yu really took a fancy to the talents in the Price member store, that is, stepped out of them and created real Costco talents.

The future founder of Costco should still be the executive vice president in the Price member store at this time!

Speaking of this, I have to say that Costco has experienced twists and turns.

Sol Price, the founder of Price Club, is a pioneer of modern super shopping malls. He founded the first discount store Federma in 1954, but it failed to manage well because of low profits. .

After that, Sol Price summed up the experience and lessons, and figured out the membership-based shopping club model, and only then opened the Price member store in 1976.

As for the real Costco, it was established in 1983. The founders were not the Price brothers, but Jim Singanel and Jeff Blotman.

Jim Singanel was an employee of Federmar in 1954 and a subordinate of Sol Price. Although Federmar went bankrupt, he still followed Sol Price.

After the appearance of the Price Club, he continued to work for the new company, and because of more than 20 years of work experience, he served as executive vice president within two years.

As for Jeff Blottman, it is not Sol Price’s old subordinate, but the management elite who joined after the appearance of the Price Club.

The membership store model created by Saul Price inspired Jim Singaner and Jeff Brotman.

Until 1983, Jim Singaneer and Jeff Brotman, who could no longer hold back their entrepreneurial heart, resigned together, moved away from California, and came to the United States where Price Club has not yet set foot. In the east, a true warehousing membership hypermarket has been created in Seattle, Washington-Costco!

Costco's model is further optimized on the model of the Price member store, and the area of ​​a single store far exceeds that of the Price member store.

After only two years of development, Costco went out of the United States and opened its first overseas store in Canada.

In 1993, Costco and Price Club merged, and the true Costco Company appeared in later generations.

Now, Costco has not yet appeared, but this is not important. What is important is that Xia Yu is very clear about Costco's business model.

Later Wall Street capitalists have long studied Costco's model thoroughly, and only in this way can they dare to hold it for a long time, so it is not surprising that Xia Yu knows its model.

The model is known, and the founder of Costco, who has more than 20 years of work experience and management capabilities, happens to be in the Price Member Store and also serves as Executive Vice President.

As long as the Price member store is taken down, the two founders of Costco will naturally not be able to escape.

As long as Xia Yu brought out Costco in advance, arranged for the two of them to operate, and then promised the option, the two of them would not be able to get out of Xia Yu's palm.

As long as they are tied, there is no need to worry about other competitors.

To be honest, for Costco, Xia Yu admires it from the bottom of his heart. This is an alternative road with great potential.