Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What are the staffing requirements and sales expectations for Costco depot event days?
Costco event days in depots require significant commitment: you must staff the stand yourself for the full day (typically 9:30am–9:30pm), and Costco is strict about presentation standards throughout. You cannot rely on Costco to provide your staff. **Staffing options:** - **Own staff** — Members who ran 9 four-day events across Oct–Dec 2024 found this preferable to third-party suppliers, giving better control and engagement - **Avansa** — A specialist supplier for depot trade-day staffing across cash-and-carry venues; they know the customer base and are well-regarded. Contact via DM in the group - **WDS** (Costco's in-house recommendation) — Available through the link provided, but members found them "a bit 'table with a table'" and less effective than hired promotional staff **Expectations:** - Members described the event schedule as "gruelling" and "brutal" (full 9am–9:30pm days) - One member completed 155 events in late 2023/early 2024 and can advise on specifics - Sales expectations were not quantified in the discussion **Key caveat:** The group felt in-house Costco staff (if available) are not as good as your own or professional promotional teams. Plan for significant internal resource commitment or budget for external staffing.
What is the experience with temporary special event listings at major UK retailers, and how do location and seasonal timing affect sales performance?
**Summary:** Members have run temporary special event programmes at Costco UK, which typically involve 2-week listings with in-store sampling stands. Location and season are critical factors affecting performance. **Performance and structure:** - **Costco UK Special Events** — Members report these are 2-week temporary listings with a stand for sampling; no charge to the brand, but Costco only purchases stock actually sold (sale-or-return basis) - **Q4 timing** — Seasonal impact is significant; Q4 special events performed very well for one member - **Scale example** — One member ran 155 dates across all 28 Costco depots, selling 1-litre bottles of a 33% liqueur and averaged approximately 60 bottles per site per day **Practical requirements:** - **Location selection** — Pick sites close to your production/base to reduce logistics burden - **Labour and hours** — Be prepared for setup from 7am Thursday through 9pm closing, working continuously until Sunday evening; this is hard work and requires sustained staffing - **Stock management** — Bring a full pallet for display if transporting stock yourself; Costco operates on sale-or-return, so you manage inventory risk **Key caveat:** Location and season massively impact results, so site selection and timing are critical to ROI.
What are Costco UK's pricing model and margin structure, and how does it compare to traditional supermarkets?
Costco UK operates on a fixed, low-margin model fundamentally different from traditional supermarkets. Members report **a maximum margin of 10–14% added to cost price** across all products—significantly lower than standard retail. This is the defining feature of their business model and applies consistently. Key characteristics: - **Membership-only access** — prices are not advertised outside stores; membership gates the customer base - **Volume-focused** — members have achieved strong volume sales (e.g., 3–4K cases/month at peak for spirits brands) - **Price monitoring risk** — the major retailers actively watch Costco prices, so if you supply multiple retailers, pricing misalignment can "come back to bite" you and trigger issues with other stockists - **International expansion possible** — members have successfully done Costco international pieces alongside UK sales The low fixed margin means Costco is a cash-and-carry/discount model, not a traditional supermarket. Success here depends on volume: the tight margin only works if you can shift significant quantity. Be cautious if you already supply major multiples, as Costco's prices may undercut them and create channel conflict.
What bar setup does Costco require for promotional events, and where can you source it cost-effectively?
Costco has specific requirements for in-store promotional bar setups and typically rejects standard pop-up display stands. Members report that sourcing compliant setups can be challenging, but **Display Wizard** (specifically their Finesse Portable Exhibition Counter range: https://www.displaywizard.co.uk/pop-up-counters/finesse-portable-exhibition-counter/ and https://www.displaywizard.co.uk/finesse-promotional-counter/) has been approved by Costco and used successfully for extended campaigns (one member ran 155 days without issue). Some Costco representatives may initially push back, so persistence in discussing your setup choice with the buyer is worthwhile. Some vendors resort to having local handy people custom-build setups, but this is not the only option. Members recommend pushing back with evidence of approved solutions rather than accepting that custom local builds are mandatory. Note: Costco contacts rotate between team members managing approvals, so you may be communicating with different people on email.