Costco has announced that it has been negotiating a 15% discounts on labor, cars’ parts and cars ‘accessories with select dealership across the country. Costco has been in the auto industry and has been offering select vehicles to its members at reasonable prices. Now it has moved to offer yet another discount opportunity for all of its members by bringing its discounting model to the level of dealerships.
The move will benefit dealers allowing them to have access to Costco’s estimated 44 million members. This will also generate a big cut on the cost on parts and labor and will deliver a fair break for car owners.  
Many auto industry observers believe that this move will generate lucrative profits for retail outlets. Typically, dealerships take on profits through service department to clean off the bill while retail outlets have direct customers’ interaction and once the negotiation is made final, the retail outlets automatically get the benefits.
Jeff Brandfon, owner and spoke person of Brandfon Honda, Branford Connecticut had said that the partnership of dealers with Costco will generate between 500 to 600 jobs per year based on actual customer pay per job. All optimistic claims are based on Costco’s powerful statistics. Statistics placed Costco as one of the leaders in the auto industry. The warehouse chain reportedly has 250,000 vehicles sold to members in 2010.
Costco is one of the leading warehouse stores with more than 44 million members. It also offers rewards for its exclusive membership. Online registration is required for every members and all members get spouse or domestic partner card. Costco warehouse offers international membership and is dedicated to bring quality good and quality services at most affordable prices.
Costco’s warehouses carry wide selections of product’s categories, which include appliances, catering supplies, automobiles and car parts and cars accessories, furniture, tobacco, beauty aids, television and media, toys, office supplies and office equipments, watches, cameras, house wares, jewelry, apparel and confectionary.
Jim Sinegal. Costco groups of companies CEO firmly assured that Costco’s move aims to offer their business partners better prices and values by sorting out the frills and costs mostly associated to wholesaling and retailing. He said Costco will continue to have lower overhead cost to deliver a lower price commodity.
All Costco warehouses are operating seven days a week for all exclusives members and it is listed in NASDAQ under the symbol COST.
Observers noted that since Costco is well-known for quality products with prices lower than the traditional wholesale and retail outlets and the discounts offer on cars’ parts and cars’ accessories will surely get the public’s approval.