Provide a delivery service for Costco customers

Written by Marc on March 14th, 2007

If you haven?t ever had a chance to shop in a Costco Wholesale warehouse, take the time to check them out. They are a large membership based retailer with over 500 warehouses. They sell food, furniture, appliances, sheds, trailers, hot tubs, etc. For a lot of these big items, members (customers) put them on a cart and pull them through the till. Most of the larger items sold at Costco require a truck to take home and some customers don?t have one. They need the item delivered ? and Costco does not provide that service.

That is where you step in.

Providing a delivery service to the customers of a company with $50 billion dollars in sales is a business opportunity worth looking into. You could even take it on a smaller level and look at your local Costco and expand from there.

Requirements:

1. A truck
You will need a truck that can hold an object as large as a hot tub. This could be as simple as a pickup truck, a truck with a trailer, or a moving truck. You could also work out a deal with a local truck rental shop and pay a discounted rate on a per use basis.

2. Movers
You will probably need at least two people to deliver items from Costco. It may be a good idea to have a few people on standby as well, especially to help with the heavier items.

3. Moving gear
Items such as tie-downs for free-standing items, straps to move appliances and large objects, and a wheeled dolly. These items will be used to move, secure and aid the delivering of merchandise to your customer?s homes. Other obvious items should be a cell phone and a map.

4. Insurance
Getting movers insurance not only protects the merchandise that you will be delivering, but also protects your customer?s homes from damage your movers cause.

Pricing

With regards to pricing, most Costco members pay to get good quality service and good price. Keeping that in mind, you should try to charge a fair price for your delivery. You will make good profits from the volume of deliveries so it is not so important to make a lot of money per delivery. Another method of charging would be based upon size of the delivery ? the more movers required to move the object, the greater the charge.

Consider starting up a delivery service for Costco members. The 500 warehouses provide an untapped market to deliver products that you don?t have to sell. With a low startup cost and high volume, consider delivering Costco products as your next business venture.

Read more articles on Business Ideas and Business Opportunities.

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