
One of the bigger stories to emerge earlier this month involved two of the biggest companies in the world: Apple and Costco. For years, Apple products have been available for sale through Costco locations, but that relationship is coming to an end. Apple products are getting phased out.
Why? This comes from a clash of business philosophies. On the one hand, Apple wants to maintain strict control over its retail channels, ensuring that its products are always sold at the same price, no matter where the consumer chooses to buy them. This helps to maintain the “exclusive” or “premium” appeal of items like the MacBook and iPod. On the other hand, Costco prides itself in delivering good value to its customers and this usually comes in the form of significant discounts.
The clash came to a boiling point when Apple refused to include Costco as part of its initial launch partners for the Apple iPad tablet device. After much back-and-forth and negotiation, it has been concluded that Apple products will no longer be sold at Costco. This could represent a huge loss for both companies, both in terms of potential and opportunities.
So, what lessons can smaller businesses learn from the Costco-Apple situation? If you can’t come up with a mutually beneficial arrangement, sometimes it’s better for all parties involved just to walk away. It may not be ideal, but it could be better than setting yourself up for all sorts of future conflicts and resentment.




