Does It Hurt The BMW Brand Image When They Are Being Sold At Costco?

Does It Hurt The BMW Brand Image When They Are Being Sold At Costco?
As I was cruising around San Diego doing errands today, I thought I'd break the streak of endless turkey leftover meals by grabbing a pizza at Costco.

They always showcase a couple cars at the entrance but they are usually cars like the Chevy Malibu, Toyota Highlander or Kia Sedona.

So imagine my shock today when I saw a 2009 BMW 335i sedan being hawked to the Costco crowd!

The second I saw it, my brain began to fill up with questions like... Has ANYONE ever bought a 335i from a Costco? Or Would you or I go to Costco to buy one versus at a dealer. And does it diminish the brand image and its exclusivity by being displayed there?

In front of a Nordstrom at a high end mall or on a sidewalk in a trendy high trafficked part of town.

I get it.

But right at the front door of a Costco warehouse with shopping carts cruising by it filled with Beefarino (Hopefully you saw that Seinfeld)?

Agent 001 is dazed and confused how someone thought this was a good idea.

What's next?

Come see the first 2009 7-Series at Costco...Free $1.50 Sausage sandwiches for 2-4PM!

By the way, don't the photos from my iPhone suck?

Must use the same lens from the backup camera on my X5. ;)


jt716jt716 - 11/30/2008 10:14:53 PM
+12 Boost
There is a Volvo next to it and I think it might cost more than the 3 series. So it might be hurting the image for both of them.


TommyAndersonTommyAnderson - 12/1/2008 12:40:15 PM
+1 Boost
It's not a bad idea at all but it could be a comedown to the new 7 if they put it there.....
Andy


dumpstydumpsty - 12/1/2008 1:30:49 PM
+2 Boost
I don't think the 2 vehicles were on sale, but rather enticement to enter raffle contests of sorts. A Costco I frequent, usually offers BMWs, Infiniti's, Lexus', and loaded average cars.

Nothing really to lose sleep about.


henbmwhenbmw - 12/2/2008 8:21:53 AM
+1 Boost
I saw an M3 and R8 in a airport near Paris last week. It was for a raffle but I don't think the drooling admirers perspective of BMW or Audi diminished in the least.


Yonder7Yonder7 - 11/30/2008 10:16:21 PM
-1 Boost
Not at all, in my country is very normal get BMWs, MBs or Audis, as Lottery gift from Malls or shoping centers, and do not hurt the image of those big brands.


cl0wncl0wn - 11/30/2008 10:30:57 PM
+7 Boost
nope not at all... costco sells quality products and i'm glad to see them selling quality vehicles


350zdon17350zdon17 - 12/1/2008 10:50:15 AM
+3 Boost
get your gallon of mayo with a new 3 series


david999david999 - 12/1/2008 12:43:53 PM
+4 Boost

Anybody and their mothers can have a BMW these days. Displaying it at a Costco store is nothing to be ashamed about, unless I was a badge whore that thought owning a BMW would boost my image.


BremboBrembo - 11/30/2008 10:32:06 PM
+11 Boost
Only hurt if you really care!


njsidekick3njsidekick3 - 11/30/2008 10:41:53 PM
-11 Boost
Bulls**t! Yes it does!



enthusiastx11enthusiastx11 - 12/1/2008 1:16:25 AM
+1 Boost
blather from someone who's never bought a bmw. show me these bargains. by the way, i have a 2008 335i sedan and it's $650/month for my lease (and i got a good deal).


sstainbasstainba - 12/1/2008 10:02:33 AM
+1 Boost
Hm... Well my X6 is 1350 a month and the 135 is 1100. My 325 is older and only 320 and the 330 is 470. None of these are leased incidentally. Oh, me and my other are in the top 1% of earners in the country. Jackass.


350zdon17350zdon17 - 12/1/2008 10:54:53 AM
+1 Boost
wow you got hit over the head on that 1 series lease...congrats for having money to throw away


sstainbasstainba - 12/1/2008 11:04:42 AM
+1 Boost
As I said... it's NOT a lease. We can afford to actually buy the cars.


sstainbasstainba - 12/1/2008 3:17:48 PM
+6 Boost
you can drive through the ghetto and see mercedes everywhere. your generalizations are completely without merit. on a sidenote, paying more for a car does not actually mean you earn more money (or have more stature)- only that you are in more debt. you are obviously a pretentious jerk who thinks that having a flashy car or x-branded clothing makes him "richer" - and therefore better - than others.


09CTSVforMe09CTSVforMe - 12/1/2008 3:54:12 PM
-1 Boost
It amazes me that y'all think you got "good deals" for those cars at those prices!!! WOW!


EL34EL34 - 11/30/2008 10:51:55 PM
-1 Boost
My CostCo the other day had a new Volvo and an Acura near the entrance.

I bought the Rolls-Royce on display at Sams Club :-o


Agent001Agent001 - 11/30/2008 11:00:07 PM
+2 Boost
The one they had the rebate on? ;)

001


0to600to60 - 11/30/2008 11:15:40 PM
+6 Boost
no, the toy you push around on the floor, lol.


pchera01pchera01 - 12/1/2008 2:11:27 AM
-2 Boost
I saw F60in Sams club and I got it for $100K for Ferrari F60


VISOVISO - 12/1/2008 10:37:44 AM
-3 Boost
sstainba, why do you feel you need to comment on your monthly payments? Audis and MBs cost just as much if not more. By the way it sounds as if you got ripped off on the 1-series payment. $1100? That is rip-off at best for such wheezer car.


sstainbasstainba - 12/1/2008 11:10:37 AM
+4 Boost
I commented on the payments because the initial post was that they are for "poor people". Since you don't know any of the details of the financing, it's really idiotic of you to make any comments on the payment. You don't know the rate or the term for the financing. You don't know the down payment. You should probably refrain from commenting. As for the car itself, I happen to like it. I'm not even sure what a "wheezer" is but that doesn't really matter anyway. What you think is expensive and what I think is expensive are probably not the same.


Agent00JAgent00J - 12/1/2008 7:59:55 AM
+3 Boost
I have never seen a Rolex sold inside a Costco store, and I almost always look at watches when I am Costco.

-00J


sizquiksizquik - 12/1/2008 10:54:40 AM
+2 Boost
No Rolex in Costo. Not gonna' happen


cpruittcpruitt - 12/3/2008 1:13:35 PM
+1 Boost
Maybe you haven't looked close enough or perhaps you don't live in a rich enough area. They actually do sell Rolex & Cartier watches at Costco because I have saw them!


jeffgalljeffgall - 11/30/2008 11:21:28 PM
-4 Boost
I'd be more concerned with BMW putting fake leather in a $47k car, hurting their image.


Agent001Agent001 - 12/1/2008 12:07:23 AM
+9 Boost
The name sounds French and classy though, Leatherette ;)

001


AgentOrangeAgentOrange - 12/1/2008 6:25:04 PM
+2 Boost
I've had 'ette (aka pleather, leatherette) on my last 2 BMW ragtops and I love the stuff. It looks like leather, feels like leather, but outlasts the real stuff by a country mile (e.g. holds its shape, easy to keep clean, etc).
If 'ette & leather were interchangeable, no cost standard features, I's still pick "ette.


F1_DriverF1_Driver - 11/30/2008 11:29:00 PM
+6 Boost
It only hurts you when you cannot afford it.


Agent001Agent001 - 12/1/2008 12:08:59 AM
+4 Boost
I'd be interested to see what dealers pay there vs. say having one center stage at a nice outdoor San Diego mall like Fashion Valley.

And which location ends up closing more business for them.

001


sizquiksizquik - 12/1/2008 12:10:24 AM
+4 Boost
No, it just reinforces the Costco brand as a leader on getting the best deal not matter what product. There are the schmucks that pay over sticker++ on a car and those who don't. Costco pricing was close to invoice when I got my last car. The local dealers would not do less than sticker.


Agent001Agent001 - 12/1/2008 12:24:01 AM
+3 Boost
Looks like when people print my Costco discount photo and bring it to their dealer, they'll have to now. ;)

That's why it pays to SPY before you BUY!

001


guambombboyguambombboy - 12/1/2008 3:43:06 AM
+5 Boost
Perfectly fine. Costco is a fine place to shop and they sell quality products.

If they were selling it in front of a Wal Mart, then I would think differently.


KingerKinger - 12/1/2008 4:16:29 AM
+4 Boost
Depends what you're buying.. the car or the image.


09CTSVforMe09CTSVforMe - 12/1/2008 7:46:08 AM
+4 Boost
Well,001, you can answer your own question by answering this:

Does It Hurt The autospies Image When Agent001 admits he shops At Costco?



Agent00JAgent00J - 12/1/2008 8:03:53 AM
+4 Boost
Perhaps the better question is, "What impact does the knowledge of possilby running into one of the AutoSpies.com agents at Costco have on the average Costco shopper?"

The line can form behind you for getting autographs!

-00J


09CTSVforMe09CTSVforMe - 12/1/2008 3:57:44 PM
+1 Boost
No, I think my question was better, but thanks for trying! : )


OneOfOneOneOfOne - 12/8/2008 5:35:25 PM
+1 Boost
this guys is an idiot. being a costco member I can tell you that there a usually numerous late model if not brand new luxury cars [no not 3 series] so there isnt much doubt how they value their money and the savings they get at costco. of course the OP is probably going to get a 'red tag' cts because aside from waiting for its precipitous decline in value once it drives off the lot theres no other way he COULD afford one. maybe he should start by shopping at bjs or sams club before he attempts to get a costco membership. they have better quality than the off price budget stores he shops at now.


HSCenterconsoleHSCenterconsole - 12/1/2008 7:56:56 AM
+3 Boost
Not a big deal for Costco's in affluent areas to cater to higher income shoppers. Here in CT, they regularly have Mercedes' out front of Costco. Wouldn't make sense if it was in a poorer area though.


skinnyskinny - 12/1/2008 8:37:02 AM
+3 Boost
Wholesale warehouse stores usually have a pretty high income demographic that shops there. One of their biggest demographic shoppers are self-employed business owner's. Generally these people got the money to buy luxury goods/cars. In a lot of Cotsco, Sams club, BJ's parking lots you see a good proportion of higher end cars. So, no this doesn't hurt BMW's image. I think any carmaker can benefit from the exposure.


altdudealtdude - 12/1/2008 9:52:07 AM
+3 Boost
Exactly, and buying a BMW at Costco can give a higher-income customer the impression that they are getting a better deal on the same car that they would buy elsewhere.


richard112360richard112360 - 12/1/2008 9:50:20 AM
+3 Boost
I've never understood why U.S owners of BMW's, MB's have an upperty attitude about their cars. BMW's and MB's are used as Taxi's and Police cars in Germany, Belgium, The Netherlands etc.


_43LE_43LE - 12/1/2008 10:03:40 AM
+1 Boost
Through years of quality product, clever product planning and marketing, and Euro chic appeal, Americans have come to believe that anything from Europe must be good. It can be seen in many industries, not just the automotive. Whether this is true or not depends much on one's level of indoctrination.


altdudealtdude - 12/1/2008 12:56:10 PM
+1 Boost
I'd say it was because they go after a more upscale market in the US and Canada, and people feel that since they're paying more for the car, it must be better quality. Which at times is probably true, but let's not ask those who bought a 1994 540i with the nikasil engine.


sstainbasstainba - 12/1/2008 10:05:20 AM
+3 Boost
it's funny that people assume if something comes in bulk that it must be of diminished quality. this is quite far from the truth. costco sells the exact same products you find anywhere else. the difference is at costco you have to buy a massive quantity. and, if you do, you save money on it. i don't get it... some of you guys are seriously just idiots.


NItePhireNItePhire - 12/1/2008 10:33:34 AM
+3 Boost
Went to Costco Black Friday and there were plenty of 40-65k cars parked outside.I would go to the dealer for service but I dont care were I buy it from if its a better deal.


mscottc1mscottc1 - 12/1/2008 10:36:20 AM
+1 Boost
This whole thing is the reason I REFUSED to allow a 3-series to be displayed at our local SAMS Club- by the way, they called courting US (and it was pretty cheap to display). Instead we chose to display a car at a model home that was built with all the latest in technology innovations (home automation, high-end fixtures, etc- $750k + house). Cost more to display, but better-targeted prospects seeing the car yields better results.


mscottc1mscottc1 - 12/1/2008 10:41:33 AM
+1 Boost
well, that and they (SAMS) wanted it outside exposed to who knows how many "rogue" shopping carts and vandalism (being keyed, etc)---


mscottc1mscottc1 - 12/1/2008 12:31:32 PM
+5 Boost
sure, de-boost me. we don't have a costco locally- SAMS was not a good idea, especially in an open unprotected environment. I'd even think a mall display would make more sense. SAMS doesn't even allow for a person to be there at any time to answer questions, nor for you display materials about the car, i.e. brochures, dealer contact info, etc.


airshowairshow - 12/1/2008 10:47:47 AM
+3 Boost
These cars are displayed for sale by local dealers thru Costco, they are not part of Costco's stock. The car displayed is an odd-ball car that may be hard to sell to the usual BMW buyer. It has the Sports package and optional GPS Nav, but not the Premium package that gives you leather and other nice features that buyers want in the 335i. We have never had a 335i on the lot that did not have the premium/leather package. Leatherette is usually found on a 328i with few or no options.


chewychewy - 12/1/2008 12:17:44 PM
+2 Boost
Costco has a program where it works with dealers. There was an E class on display at my local Costco. Supposedly it's a good way to get a good price.


theoptimisticpessimisttheoptimisticpessimist - 12/1/2008 2:51:33 PM
+2 Boost
Why not, I see both Lexus and Audi at my local Costco.


fling85fling85 - 12/1/2008 3:58:09 PM
+2 Boost
Cosco's price is final... With only 2,750 discount, you might get a better deal at the dealership Today.


Agent63Agent63 - 12/2/2008 6:00:23 AM
+3 Boost
I don't think it hurts brand image of any car company. I've seen E550/E320 Bluetec's in Oregon/California in front of Costco's and it doesn't diminish the level of prestige and build quality of these cars. Costco isn't Walmart so don't get it twisted.


jag30jag30 - 12/2/2008 9:16:14 PM
+1 Boost
Bravo to Costco! Costco is well known respectable company! Google the Ceo of Costco and you will learn that he respects his employees and offers all his employees competitive salaries and benefits! The level of customer care and service is outstanding! So doesn't seem such a good idea to sell BMW's @ Costco?!


keepitrealkeepitreal - 12/3/2008 6:41:51 PM
+2 Boost
I purchased my VW Toureg through Costco. You don't buy at the warehouse, they don't sell cars. You call the Costco Auto Program (or go online) and they send you to a special, participating dealer. My dealership explained that they display vehicles at the closest warehouse all the time, because it lets members shopping there know that there is an auto buying program through Costco. It helps keep awareness of this special membership benefit high, so when members are in the market for a new vehicle, they know they'll get the same value they expect from Costco. When I got to the dealership, I spoke to Costco's Authorized Contact there, and he showed me Costco's special price sheet for the Toureg I wanted. I compared it to the MSRP and invoice, and drove off with SUBSTANTIAL savings. By the way, I purchased in 2004, and with our CA governor getting ready to sign a bill into law that would nearly triple the luxury tax on vehicles, I still saved thousands going thru Costco, when other dealers keep the vehicle at or above MSRP because sales were brisk due to folks trying to beat the October 1st deadline. Anyhoo...I know you can get all makes and models thru the program--even high end vehicles like BMWs and Mercedes, Hummers, Audis, and Jaquars are displayed in some buildings. THe dealers and manufactuers know it's good for business and for their brands...it definintely doesn't diminish the brand or its value.


mkareshmkaresh - 12/4/2008 7:30:26 PM
+2 Boost
Cars aren't sold at CostCo, but through its buying service which has dealers guarantee not to go above a certain price (they can go below it).

CostCo's image isn't that of a discount store--they carry a lot of high-end merchandise, including $300 bottle of wine. People understand that you're buying high-quality stuff at a value price at CostCo. So it doesn't hurt anyone's image to be sold there--even if the cars were sold there.


brioboybrioboy - 12/5/2008 1:56:32 PM
+2 Boost
Costco @ Cabo San Lucas is actively advertising high-end Volvos, presumably through its buying service and presumably good prices. Also high end French and Italian wines. I was surprised for Mexico but the lot was filled with high-end vehicles.


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