EDITOR'S NOTE: This article has been updated to clarify that Costco Auto Program and Costco are different companies.
Costco Auto Program is working with new-vehicle dealerships to expand its members-only discounts beyond auto purchases to service and parts sales.
That effort is working: Costco Auto Program says its transaction volume, including service and parts, increased by 7 percent over the previous year.
Rick Borg, executive vice president of program operations for the warehouse retail chain's auto program, credits that growth to learning from experience what drives participating dealerships' business. More than 900 franchised dealerships are enrolled in the service and parts program, Costco Auto says, along with 475 independent garages.
"It's a win-win-win," Borg told Fixed Ops Journal. "It's good for our members, good for dealers and good for Costco because it helps us retain our members."