Costco's Diversion buying


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Posted by Aaron Stiny on 2011-04-02 01:10:35 in reply to Re: Sage and Simms at Costco posted by joelnrosenthal on 2011-04-01 21:37:00

Upon first hearing about this I was a little taken back that Sage and Simms would do this. Jamie and the crew at Sage assured me that they did not in fact sell to Costco and were monitoring the situation very closely. The folks at Simms were doing the same.

After some independent research it looks as if buying unauthorized goods is part of Costco's strategy. They've done this to some of the biggest companies out there and have been sued multiple times. Hopefully others in the industry will chose to learn from this rather than try to paint Sage and Simms in a negative light due to it. Check out the following story for some further info about what Costco does and who they've done it to.
http://www.hardknoxlife.com/2008/03/24/costco-diversion-buying-strategy/
-Aaron


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