No AG cards at Costco this year

[ray7694]

I was told by our local manager that AG lost too much money last year with the gc that they would not be doing them at Costco this year.

[marymoo86]

I was told by our local manager that AG lost too much money last year with the gc that they would not be doing them at Costco this year.

Curious on how they lost money on a 20% effective promo if used on exactly $100 worth of merchandise.

There's a ton of new items at ours. Horse/saddle for 49.99 that is at least $100 in store. Bitty baby set. Sleepover set. Seems they would "lose" money on these that are half or more of retail comps.

[vonfirmath]

Curious on how they lost money on a 20% effective promo if used on exactly $100 worth of merchandise.

There's a ton of new items at ours. Horse/saddle for 49.99 that is at least $100 in store. Bitty baby set. Sleepover set. Seems they would "lose" money on these that are half or more of retail comps.

remember American Girl also ha da TON of sales last year. Think about using these gift cards on top of a sale...

[HannaAddict]

If people will pay full price or sale price without another 20% discount, they lost money.


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[marymoo86]

remember American Girl also ha da TON of sales last year. Think about using these gift cards on top of a sale...

I can't imagine that the amount of gift cards sold through Costco resulted in that kind of loss. If so, that is some really poor sales planning to have those kinds of sales knowing they had gift cards out there too diluting margin.


If people will pay full price or sale price without another 20% discount, they lost money.


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Not really. If people purchased due to the gift card discount that had never purchased before, then they gain add'l (albeit margin dilutive) customers and sales - therefore increasing revenue. They knew they would be sacrificing some margin when entering into that deal. Given that it isn't endless supply of GCs and Costcos aren't everywhere, I'm highly doubting this alone hurt the bottom line.

[vonfirmath]

I can't imagine that the amount of gift cards sold through Costco resulted in that kind of loss. If so, that is some really poor sales planning to have those kinds of sales knowing they had gift cards out there too diluting margin.

Note they changed management teams in -- February I believe it was. and all of those sales stopped. Plus no gift cards, etc. I think there was really poor sales planning going on that lost the senior management team their jobs.

[wellyes]

I was told by our local manager that AG lost too much money last year with the gc that they would not be doing them at Costco this year.

Classic salesman BS to tell the customer that they served you so well, they lost money. Cars, hotels, retail, etc all say it.

[HannaAddict]

"Lost money" can be as simple as the increase in "new" customers wasn't enough for them to justify the cards when they know they will sell x number to existing. Or they just don't want to do it. Doesn't really matter since why at the end of the day. Thankfully mine never cared about AG at all, dodged that money pit! (She liked s couple of the movies.)


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[Melaine]

They had them at our Costco grand opening a few months ago. If I had known they were rare I might have picked them up, but my girls really have too much AG stuff anyway!

[mmsmom]

They had them at our Costco grand opening a few months ago. If I had known they were rare I might have picked them up, but my girls really have too much AG stuff anyway!

They were at my Costco over the summer.