"We always strive to be the best in the wage package"
About this Quote
Costco’s cofounder isn’t talking about altruism; he’s talking about leverage. “We always strive to be the best in the wage package” is corporate language that smuggles a moral claim inside a competitive one. Sinegal frames pay not as a reluctant expense but as a category to win. That word “package” matters: it widens the promise beyond hourly wage into benefits, stability, and the quiet dignity of a job that doesn’t treat workers as disposable.
The intent is tactical and cultural at once. Costco built a brand on bulk savings and thin margins, yet Sinegal insists the workforce is not where you cut corners. The subtext is a rebuke to the prevailing retail orthodoxy: keep labor cheap, accept churn, backfill endlessly. By saying “always strive,” he’s planting the idea that wage leadership is a discipline, not a one-off gesture when public scrutiny spikes. It’s a managerial identity.
Context sharpens the point. In late-20th and early-21st century American retail, “race to the bottom” labor economics became a default business strategy, justified as necessary for low prices. Sinegal’s line argues the opposite: higher pay can be part of the value proposition. Better wages reduce turnover, raise productivity, and create a steadier customer experience, turning labor into an asset that protects the brand.
It’s also a subtle PR shield. “Best” is aspirational, not audited; “package” is flexible. The genius is that it sounds humane while remaining firmly in the language of competition.
The intent is tactical and cultural at once. Costco built a brand on bulk savings and thin margins, yet Sinegal insists the workforce is not where you cut corners. The subtext is a rebuke to the prevailing retail orthodoxy: keep labor cheap, accept churn, backfill endlessly. By saying “always strive,” he’s planting the idea that wage leadership is a discipline, not a one-off gesture when public scrutiny spikes. It’s a managerial identity.
Context sharpens the point. In late-20th and early-21st century American retail, “race to the bottom” labor economics became a default business strategy, justified as necessary for low prices. Sinegal’s line argues the opposite: higher pay can be part of the value proposition. Better wages reduce turnover, raise productivity, and create a steadier customer experience, turning labor into an asset that protects the brand.
It’s also a subtle PR shield. “Best” is aspirational, not audited; “package” is flexible. The genius is that it sounds humane while remaining firmly in the language of competition.
Quote Details
| Topic | Work |
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