Founders
Episode 304 #304: Sol Price (The Founder Who Taught Jim Sinegal, Sam Walton, Jeff Bezos, Bernie Marcus)
Founders

Episode 304: #304: Sol Price (The Founder Who Taught Jim Sinegal, Sam Walton, Jeff Bezos, Bernie Marcus)

Founders

Episode 304

#304: Sol Price (The Founder Who Taught Jim Sinegal, Sam Walton, Jeff Bezos, Bernie Marcus)

David Senra is the host of Founders, where he studies history's greatest entrepreneurs. This is what he learned from reading Sol Price: Retail Revolutionary by Robert Price.

What I learned from reading Sol Price: Retail Revolutionary by Robert Price. 

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[6:50] He believed in developing strong operating efficiencies, and he continually emphasized passing on savings to customers.

[8:48] It's pretty incredible to think about that Sol's ideas have created trillions of dollars of value.

[11:18] You can always understand the son by the story of his father. The story of the father is embedded in the son. —Francis Ford Coppola: A Filmmaker's Life by Michael Schumacher. (Founders #242)

[14:00] Stephen King on the belief and support he received from his wife: “Having someone who believes in you makes a lot of difference”— Stephen King On Writing: A Memoir of the Craftby Stephen King. (Founders #210)

[16:00] True education is gained through the discipline of life. —Henry Ford

[19:45] Sol kept a small sign in his office: “Do it now.”

[24:00] Sol finds an idea future generations of entrepreneurs will use: A membership retail store targeted to a specific niche.

[24:45] When you have people driving far distances to save money that is a very good sign. — Sam Walton: Made In America by Sam Walton. (Founders #234)

[26:45] Daniel Ek interview on the Acquired podcast

[39:10] If you’re not spending 90% of your time teaching, you’re not doing your job. —Jim Sinegal.

[39:45] You train an animal, you teach a person.

[40:00] He was not a fan of training manuals because he believed that manuals were a substitute for thinking.

[43:00] What does limited selection have to do with efficiency? Because payroll and benefits represent 80% of a retailer’s cost of operations, pricing advantage follows labor productivity. Fewer items result in reduced labor hours throughout all of the product supply channels. Put simply, the cost to deal with 4,500 items is a lot less than the cost to deal with 50,000 items.

[50:21] The operating efficiencies of the warehouse concept and the direct delivery of products from the suppliers to Price Club made it possible to sell merchandise for less.

[55:00] Costco and Sam's were expanding aggressively while Price Club remained tentative.

[1:03:30] Sol was a poster child for the American dream. His immigrant parents were born in a small Russian village. Sol was the first in his family to graduate college. He earned a law degree. He became an exceptionally successful businessman and philanthropist, celebrated 70 years of marriage, was a good father who instilled high values in his sons, and he never walked away from responsibility. It doesn’t get much better than that.

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I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested so my poor wallet suffers. ” — Gareth

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#304: Sol Price (The Founder Who Taught Jim Sinegal, Sam Walton, Jeff Bezos, Bernie Marcus)

Introduction

This is Jim Sinegal, Founder of Costco, writing in the foreward of this book. About 4 years ago, shortly before his death and a few days after we had lunch together, I received a letter from Sol Price. Dear Jim, it's always like seeing you and experiencing your enthusiasm, knowledge, and commitment to your values. You've been very generous about giving me some credit for influencing you. I suspect that's true, but you would have been a great achiever under any circumstance. I related only the first paragraph of this letter because so would on to say some very complementary things that I will keep personal. Upon reading the letter, I turned to my assistant and said, "I've been waiting 50 f****** years for this letter.” It was well known that complements from Sol came around about as frequently as Haley's comet. After digesting the letter, I reflected on the fact that here I was in my 70s and still seeking approval from this guy. What was it about the man that engendered so much admiration and respect, not just for me, but from thousands of us who worked with Sol over the years. Certainly, there was his intelligence and creativity, but that's not the complete answer because there are millions of bright people in the world and only a handful make a lasting impact.

There was so much more to Sol's leadership qualities that touch all of us and made everyone confident that we would persevere regardless of the obstacles. I started working at FedMart, that's a company that Sol founded. I started working at FedMart in 1954, while still in college, a path that was followed by many of Costco's current executives. Sol gave us incredible opportunities to learn the business, teaching us the skills and core principles we applied throughout our business careers and then later when we launched Costco in 1983. Sol’s teachings had a great impact on our business ethics, our core values and, of course, our merchandising philosophy. He believed in developing strong operating efficiencies and he continually emphasized passing on savings to customers.

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