An article from our friends at CMG tipped us off to the fact that Zero Motorcycle has begun promoting its electric motorcycles through several Costco stores in Canada. Taking a page from Kawasaki’s playbook in working with Costco (which is itself a take on what automobile dealers have been doing with the warehouse brand for years), Zero currently has displays in six Canadian Costco warehouse stores, working as a part of the wholesaler’s Membership Benefits Program. Like the Kawasaki program, Costco isn’t actually selling Zero Motorcycles, but instead Costco members recieve a special value package if they purchase a Zero through the promotion.
If that raises your eyebrows, here is a quick primer on the Costco business model. Generally speaking, Costco keeps its company very efficient and lean by keeping very low inventories — I’ve heard it quoted that the company won’t carry more inventory than what it can sell in one to two weeks. Helping drive that turnover are the low prices that the company is known for, but instead of doing a high volume/low margin sales approach, Costco’s true bread & butter is its membership fees.
