Commentary

Caskets? Great Deals At Costco

by dave.b , Max Kalehoff , November 13, 2009

I'm not easy to market to. I'm loyal to few brands. I shun most advertising. I'm a jaded consumer. (I think these qualities make me a more effective marketer.)

Which is why I love Costco, the wholesale warehouse club. I can get good deals on a huge variety of necessities and luxuries. I feel like Costco is on my side -- doing deals with manufacturers of good products to benefit me. Importantly, Costco doesn't aggressively market to me in irrelevant ways. In fact, Costco is there when I want it, and otherwise out of my face. At the risk of appearing like a pathetic suburban dad, that is why Costco has become a weekly ritual and a part of my life. I even browse the member magazine regularly. It's people like me that helped drive Costco's sales up 5% in October 2009 versus last year -- amidst challenging economic conditions.

But there's another side to this story: Costco attempts to be relevant through all life stages. After stocking up last Sunday on baby wipes, diapers, Brita filters, organic milk and cleaning supplies, I stumbled into the club's new casket display, positioned next to the window-shade and tire displays. (I also discovered you can purchase caskets direct from Costco.com.)

At first, I laughed. Yet it underscored an important idea: organized buying groups (like Costco members) will continue to advance commodification in ways we never thought possible. On one hand, I like the access, choice and discount value. However, there is something perverse about such extreme product expansion -- in this case, from cradle to casket. What does that say about life and consumerism? I'm not sure, but it's concerning. Businesses want to grow, and a discount value proposition can extend to a lot of things. But to very personal objects of mourning -- featured at the end of the checkout aisle? How much business expansion is too much expansion?

What do you think?

For the record, I don't intend to be buried in a casket. I prefer cremation. I'm sure Costco will offer that soon, as well.

commentary, retail

17 comments about "Caskets? Great Deals At Costco".

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Douglas Ferguson from College of Charleston, November 13, 2009 at 11:46 a.m.
This brings back my teenage memories of reading American Way of Death by Jessica Mitford, especially the method used by funeral homes to sell overpriced caskets, capitalizing on your sudden grief: They show you 3 caskets. One is basically an egg carton/cardboard box, way too little and much too cheap. Then they show you the solid bronze casket that hardly anyone can afford. Then they show you the one in the middle, the overpriced wooden casket that is supposedly "just right" using the Goldilocks metaphor. Just right for the casket seller, that is. Kudos to Costco for undercutting the retail chain. By the way, cremation is often more expensive than the typical casket. That just burns me up.
Reply

Adam Keats from Weber Shandwick, November 13, 2009 at 11:53 a.m.

The caskets at CostCo are not new -- they've been at that for at least a year if not more (although WalMart just recently -- and quietly -- started offering them on its Web site last month).

CostCo not only does a great job hitting you in all of your life stages, but they focus their line on so many products that tend to be emotionally relevant to us as consumers. We know that we all need a toothbrush, but emotionally, those electric ones look so much cooler on display than they do in the dentist's office thanks to the savings. So does the wine, the meat, the seafood, the clothes, the spices -- the things we dont always need to buy in such volume, yet we do.

Teresa Britton from Demi & Cooper, November 13, 2009 at 11:53 a.m.

I agree! I find this new placement a bit disturbing. I was already avoiding the back area of the store where they had them on display. I can't imagine what type of emotions swell up in someone who's recently lost a loved one. If they feel the need to sell them, why not put them in the magazine?

Matt Ellsworth from FLMSC Inc., November 13, 2009 at 11:55 a.m.

While I'm not sure that I would want to walk past caskets everytime i go to get groceries, at least they are in the back of the store so you can just avoid it.

It's a good idea for them to help out costco members with savings on these sorts of things, they already sell just about everything else.

Michael Kremin from NeoGen Digital, November 13, 2009 at 12:02 p.m.

Costco.com already features urns and small keep sake urns for cremation ashes. I applaud Costco for making these products available. While death may be something that many fear or do not want to confront, Costco enables those who desire to plan ahead to make their choices without the pressure of a funeral sales person while overcome with grief. Many find comfort in knowing that their arrangements have been made, and Costco's offerings are tasteful and very compettive in pricing.

I do not see this as consumerism from cradle to grave. This is filling a gap in the current marketplace for the inevitable.

Kristin Thompson from RedShift, November 13, 2009 at 12:07 p.m.

This is EXACTLY the same as a recent Modern Family episode. They even talk about diapers to caskets and products for every stage of life. Literally.

Rodger Banister from Edoc Systems Group, November 13, 2009 at 12:07 p.m.

Re: your question - how much expansion is too much? I like Costco's approach. They are constantly tweaking with inventory to see what pulls and what doesn't. However, I believe that the question doesn't necessarily have to do with products or services alone. The reason why the Costco model works is that the sales/pricing/brand model is consistent (i.e. value-based). If they deviated from that model and started to sell caskets like funeral homes do (premium items with upsell in mind), then that, in my mind, would be categorized as too much business expansion, because they would alienate their base.

Mike Patterson from WIP, Inc., November 13, 2009 at 12:13 p.m.

Kroeger ("Six Feet Under" reference) is in the house!

Paula Lynn from Who Else Unlimited, November 13, 2009 at 12:14 p.m.

The Jewish tradition is to bury yourself. While you are alive and still in your right mind, you take care of all your burial needs. It is your life, your responsibilty, not your childrens'. Both of my parents chose a plain pine box as their parents - dust to dust, their graves were bought and paid for as well as the funeral arrangements. When my mother died last year, my sister and I made the final call to the funeral home and chose the monument. CostCo is not only a smart marketer, you'll thank them later. Trust me, you will be outlived.

Brad Stewart from Molecule Inc., November 13, 2009 at 12:14 p.m.

3 things are a problem with the "Costket" concept.
1) People don't want to think about death when shopping. Die!? That's the last thing I'll do! ;) High on the creepy-metre!
2) Costco is all about "buy 10 for the price of 7". The casket fit is not obvious in terms of how it fits with their brand.
3) Costco is utilitarian. Death is the opposite of utilitarian. Once you die, there is no more utility.

If Costco is going to get into social engineering (ie. telling people what emotions they should ignore in terms of product decision-making), there are many other items they could start selling, which fit their "size-centric" brand.

Ben Thompson from Operative Media, Inc., November 13, 2009 at 12:14 p.m.

I won't even pretend to be objective here: I've been a member for 20 years (remember its predecessor, Price Club?) because I love the ritual of 'going to Costco' and walking up and down the isles more than the actual stuff. Caskets are consumer items just like Prep H and giant boxes of condoms, both of which I consider very personal. Why should people have to be ripped off by the exorbitant prices paid at funeral homes? Maybe they should build another one of those cold rooms and place them there... that way folks won't be tempted to linger inappropriately.

Spider Graham from Trainingcraft, November 13, 2009 at 12:20 p.m.

Like Max my intentions are to recycle myself with a more environmentally friendly approach. That said, I think this approach could really work as long as the casket serves a double purpose for the living. For example, a lovely coffee table that doubles as a storage device could be part of your home decor for several years before being used for it's intended purpose.

The downside is that your loved ones would be put in the unfortunate position of having to buy a new coffee table during their moments of deepest grieving.

Sally Robinson from soxgal.net, November 13, 2009 at 1:38 p.m.

It's the spirit of capitalism to bring competition to the marketplace. Years ago I thought it was strange that my parents bought themselves burial plots. After experiencing two very tragic family deaths this year, I'm now thankful that my parents had the foresight to think ahead and plan for their burial. While many of us don't want to think about death or funeral arrangements, there's nothing worse than having to do it unexpectedly and under emotional stress. When my parents pass, perhaps I'll become a Costco member and get a great casket at a great rate.

James Haft from nextperience.net, November 13, 2009 at 2:04 p.m.

Well, everybody needs a casket sometime, right....? might as well get a good price!

Patrick Scullin from Ames Scullin O'Haire, inc., November 13, 2009 at 5:16 p.m.

As a huge Costco fan, I want to go in a Costco box. The only downside will be I won't get the 2% rebate in Costco Cash on the purchase... although maybe heaven accepts Costco Cards. I hope we're talking heaven...
http://www.thelintscreen.com

Nancy Shaver from experian, November 13, 2009 at 6:02 p.m.

Suggest visiting the website agingwithdignity.com-- and getting a copy of the "Five Wishes" document. Whether it's a casket from Costco or an urn made by an artist friend--making your wishes known is a gift to those who are left behind. My guy and I just designed our marker--glass from Lundgren Monuments (lundgrenmonuments.com). No bargain--but we're happy and plan to dance on our grave with the monument in place.

Alison Kosakowski from MyWebGrocer, November 18, 2009 at 2:27 p.m.

We're in an emotional business. We can't deny the power of imagery. And this imagery is...creepy! Perhaps displaying caskets is practical, but what about the emotional impact? I actually just noticed caskets on the Costco website last week while checking to see what brands of snow tires they carry. And the "marketing me" thought, "well, this makes sense," but the consumer part of me felt kind of icky about it. I don't want to think about DEATH at Costco, I just want a "killer deal" on giant-sized versions of my favorite products! Do the caskets sell better when placed near the cigarette cartons, versus the vitamins? That would be an interesting case study. How do they perform when situated near the Halloween decorations? Babies and old people and scaredy cats like me would prefer not having to dodge the casket aisle on the way to pick up some dog chow.

I agree with the folks who've posted here about the horrendous overpricing of caskets...its crazy and almost cruel what people go through burying a loved one. But perhaps Costco could find another avenue to advertise these wares than in-store? Direct mail? In their magazine?

S.I.P.
(Shop in Peace)
Alison