FarmTech
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Virginia
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Message Posted:
7/25/2008 5:56:15 AM
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tz2001,
Love your post.
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no1lakersfam,
Where are the FACTS and figures that support your statement, QUOTING: ""Keeping prices lower than planned?" Even with that they are the most expensive warehouse club out there." END Quote.
See my response to member "franconia" below for more details and know that I have researched a number of discount warehouses/clubs--most notably Sam's Club--and find that Costco is the same OR LESS than they are. This goes for just about any other clubs.
While Costco may NOT be the absolute lowest price you will find on any one item they may sell, it is a very good bet that they are so close to the competition that it does not matter. When you factor in such items as:
1) that is their Every Day Price, AND
2) their very generous customer satisifaction and returns policy, PLUS
3) an Executive Member can get an additional 1 percent annual rebate back on just about everything they sell,
then they are the hands down winner.
It is usually only special sale discounts at some speciality merchant that would be cheaper. For example, Circuit City may sell a CD or DVD with their weekly ad that would be less than at Costco. Certain clothing retailers may have a similar item on sale. However, these are limited sales and not the everyday price. Therefore, I have found that not only does our family save a lot of time spent searching for deals, we have saved enough to be able to buy a boat.
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franconia,
Do your homework and I would advise that you learn about something before you post it. As a Costco shareholder and one who was a member when it was known as The Price Club, I am very knowledgeble about their operations.
First, Costco must charge a membership fee for several reasons. The most important is that they do not sell at retail and without getting into a whopping pile of details, Federal and nearly all State laws state that merchants can NOT do that. It actually goes back to arcane price-fixing laws. They are a private membership club and that LEGALLY allows them to sell their merchandise at prices basically just over wholesale.
As for making money, it depends on the item. In general, after all expenses are paid, Costco makes about 3 percent. On some items, it can be more. As for the gasoline sales, those are now not making any profit. Costco was making about 1 cent per gallon in the state of VA. Now, they are selling it so that it just covers all of their operational expenses. From time to time (which usually WAS when they first opened a gas station), Costco had sold at a 1 to 2 cent per gallon loss.
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DFleming
Veteran Author
Alberta
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Message Posted:
7/24/2008 11:05:08 AM
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That's scary when the economy shopping giants start feeling the pinch.
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WreckDiver59
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Detroit
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Message Posted:
7/24/2008 11:00:06 AM
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The point in joining a warehouse club is to save money. If they don't make as much, the're giving you what you're supposed to get with your membership.
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bbthegun
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San Diego
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Message Posted:
7/24/2008 10:57:23 AM
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Costco is very solvent and doing just fine.
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FASTER345
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Los Angeles
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Message Posted:
7/24/2008 10:50:32 AM
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In my area (Los Angeles) Costco gas costs more than most Arcos and about the same as most Valeros. So there you go.
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eaglechick
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Richmond
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Message Posted:
7/24/2008 10:49:19 AM
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It seems the only ones profiting lately is the oil companies. "Record" profits to be exact.
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Jeannemarie
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Las Vegas
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Message Posted:
7/24/2008 10:45:19 AM
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Buy back generally raises stock values. Hopefully.
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jeepster23
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Massachusetts
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Message Posted:
7/24/2008 10:43:53 AM
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Poor Costco
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Shiff
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Pennsylvania
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Message Posted:
7/24/2008 10:41:01 AM
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The Costco here in the Lancaster, PA, area sells gas at usually a few pennies or so less than the other stations. Lines can be long.
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Don20
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Oklahoma City
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Message Posted:
7/24/2008 10:38:55 AM
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If you buy gas everyone's savings is down..
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goose28in
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Michigan
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Message Posted:
7/24/2008 10:38:38 AM
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Well that sucks.
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EarlyMoose
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Seattle
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Message Posted:
7/24/2008 10:37:27 AM
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I'll think about that when I go to Costco today.
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Howmuchtofillit
All-Star Author
Trenton
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Message Posted:
7/24/2008 10:34:58 AM
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BOO HOOO, Hey I saw my savings lower then I predicted also.
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bauerboy
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Seattle
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Message Posted:
7/24/2008 10:34:12 AM
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Stock price down 15% in 2 days and Ford's value down 8% today due to fuel costs.
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franconia
Veteran Author
Madison
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Message Posted:
7/24/2008 10:30:53 AM
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Supposedly Costco really only makes money on the membership fees and breaks even on the other stuff - they are opening a location near me next month so I am anxious to see if the gas is cheaper than the rest of the market.
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Phantomwalker
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Nova Scotia
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Message Posted:
7/24/2008 10:30:52 AM
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We have Costco's here but none of which sell gas. To bad for me I guess
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HockeyLady
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New Jersey
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Message Posted:
7/24/2008 10:29:27 AM
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too far away from me
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UTOrangeMan
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Atlanta
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Message Posted:
7/24/2008 10:27:17 AM
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I wish I had a billion to buy stock.
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JB1881
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New Mexico
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Message Posted:
7/24/2008 10:27:12 AM
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So it's the oil companies falt that Costco sells gas cheaper than everyone else?
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Dale Jr.
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Iowa
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Message Posted:
7/24/2008 10:26:18 AM
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There are no Costco's where I live.
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RC_RACER
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Tacoma
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Message Posted:
7/24/2008 10:25:49 AM
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thanks big oil, this is going to be the norm for 2008 and on.
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AuburnTim
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Indiana
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Message Posted:
7/24/2008 10:25:29 AM
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Not surprising I don't spend any money on anything but gas and food and whatever I save there is eatin up when I pay my bills electricity and gas those are up big time too. So I don't have anything to spend so its not surprising that companies are going to report losses cause I am not alone
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woos777
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Washington
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Message Posted:
7/24/2008 10:24:09 AM
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Well put PokerAce
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SlugBuggy
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Colorado Springs
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Message Posted:
7/24/2008 10:24:07 AM
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"So is it the lower gas sales or the lack of people driving there to spend money . . ."
I'd say it's a combination of both. With less discretionary income, folks aren't as inclined to spend a lot of money on bulk items they may/may not use in the coming months.
When it's a choice between the 5 gallon tub of butter and putting fuel in your vehicle so you can go to work...
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tomok
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Portland
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Message Posted:
7/24/2008 10:24:03 AM
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I have bought many items at Costco and at good prices - food or otherwise.
Costco gas can be cheap or not - depends on the gas stations surrounding the location.
thats the purpose of this site - find the cheapest fuel, thats close.
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Wolfwings
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Delaware
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Message Posted:
7/24/2008 10:22:53 AM
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No Costco's have gas near me
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PokerAce
Champion Author
Louisiana
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Message Posted:
7/24/2008 10:22:34 AM
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Costs costing Costco....
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iluna
Veteran Author
Colorado Springs
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Message Posted:
7/24/2008 10:22:28 AM
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Good question Lonewolftx. We all know it's both, but "they" don't seem to "get it."
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kevski
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Oregon
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Message Posted:
7/24/2008 10:20:33 AM
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not too worried about costco making it
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Lonewolftx
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Houston
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Message Posted:
7/24/2008 10:20:06 AM
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So is it the lower gas sales or the lack of people driving there to spend money . . .
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tbybee
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Omaha
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Message Posted:
7/24/2008 10:18:44 AM
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Not a shock -- high energy costs effect everyone.
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SeerLV
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Las Vegas
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Message Posted:
7/24/2008 10:17:13 AM
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COSTCO will survive
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dannyshouse
Rookie Author
San Francisco
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Message Posted:
7/24/2008 10:16:57 AM
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Costco is usually the cheapest in our suburban area just south of San Francisco. Sometimes 30 cents a gallon cheaper than in the local cities.
Business is always brisk--they bring in double tankers of fuel at least four times a day!
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FizedNH
Champion Author
New Hampshire
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Message Posted:
7/24/2008 10:14:26 AM
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Bound to happen...
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tz2001
Sophomore Author
Virginia
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Message Posted:
7/24/2008 10:14:06 AM
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What a bunch of whiners. Here is a retailer selling gasoline at a loss and with their free AmEx card you get an extra 3% off the price!
Costco sells plenty of high-quality cheese to go with that low-quality whine!
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eaglev
All-Star Author
Oklahoma City
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Message Posted:
7/24/2008 10:14:00 AM
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Energy cost are hitting eveyone. Wake up Congress pass the bill to allow drilling NOW!!!
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Chazzer
Champion Author
Nevada
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Message Posted:
7/24/2008 10:12:59 AM
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And almost every other business in the country!
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BrianGriffin
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Victoria
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Message Posted:
7/24/2008 10:12:24 AM
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Not a surprise. . . energy prices will have a larger effect on the little guys.
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SpruceGuse2
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Michigan
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Message Posted:
7/24/2008 10:12:04 AM
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Oh Well.............................
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siouxbear
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Ontario
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Message Posted:
7/24/2008 10:07:13 AM
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Ifeel real sorry for the big guys
what about the mom and pop stores!
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roadkillGA
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Georgia
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Message Posted:
7/24/2008 10:05:54 AM
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Old news
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amacquarrie
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Nevada
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Message Posted:
7/24/2008 10:04:48 AM
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wow - holding back prices, that's a first
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t4204life
Champion Author
Ohio
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Message Posted:
7/24/2008 10:03:47 AM
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hate it when that happens.
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Somis1
Champion Author
Ventura
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Message Posted:
7/24/2008 10:03:03 AM
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This shows what a huge gasoline business they do.
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Brn2bEvl
All-Star Author
New York
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Message Posted:
7/24/2008 10:01:08 AM
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Poora!Poora! Costco!!!
Life is tough!!
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Dennis783
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Wisconsin
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Message Posted:
7/24/2008 10:00:42 AM
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High energy costs affect everything
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no1lakersfam
Champion Author
Virginia Beach
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Message Posted:
7/24/2008 9:58:18 AM
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"Keeping prices lower than planned?" Even with that they are the most expensive warehouse club out there. I know that does not have any bearing on earnings, but everyone is feeling the pinch of the economy.
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njteech
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New Jersey
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Message Posted:
7/24/2008 9:58:10 AM
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Don't have a gas Costco around here....too bad
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Egaser
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Atlanta
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Message Posted:
7/24/2008 9:53:41 AM
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Does this mean my gross of pretzels will be higher?
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