What's up everyone? This is Alex Lieberman co-founder and executive chairman of Morning Brew welcome back to Founder's journal

My personal audio diary where I give you the business builder the tools you need to think better in order to build better

Whether that's building a business a team or a new product today

I am talking about a brand all of us know and what we can learn from it as business minds

It's time to talk about a 200 billion dollar behemoth and the place that I loved

Frequenting for free food samples growing up on Saturdays. I'm talking about Costco. Let's hop into it

So let's set the foundation

The concept of Costco started in 1976 under this guy sold price the original founder who started the company under the name

price club and price club was doing business out of a converted airplane hangar in San Diego

Price clubs started as what is known as a B2B retailer

Basically selling three types of products one

What business is used in their business? So think food for a restaurant or

printing supplies for a corporate business

To what business is consume in their business think toilet paper and

Three what business owners used for their own personal consumption think things like TVs

But let's fast forward from the founding in

1983 Jim Synigal who had worked for sole price in

Merchandising distribution and marketing and then this guy Jeff Brautman who was an attorney that came from a retail family

They opened the doors to Costco and Costco drew inspiration from price club

It was this concept of something called the retail warehouse club where customers were members and

Because of the wholesale quantities that the store would sell

Customers could hunt for bargains or buy in bulk for their businesses

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