2010 Version

Successfully selling merchandise to warehouse clubs is not just offering buyers merchandise at the lowest possible cost. There are many factors to a successful warehouse club program and the complexity of the buyers’ requirements increases every day. One key factor in selling BJ’s, Costco and Sam’s Club is participation in warehouse club marketing programs.

Club promotional programs are designed to increase sales, increase brand awareness and access vendor marketing funds. Although buyers want vendors to participate in these programs, they try to negotiate the marketing expense out of an item’s cost of goods. No matter how these initiatives are funded, suppliers need to understand how successful the program will be at increasing sales or brand awareness. The first three sections of this white paper cover a 2009 industry survey that focused on marketing money. The fourth section of this white paper discusses the different marketing programs that the clubs offer.