Sol Price, the visionary founder of Price Club and a pioneer of the warehouse club model, left an indelible mark on the retail industry. His philosophies, which prioritized customer value and employee well-being above all else, have influenced a generation of business leaders, including the founders of Costco, Sam's Club, and even Amazon.

On Customers: The Fiduciary Duty

Sol Price's most fundamental belief was that a retailer has a fiduciary duty to its customers, meaning a responsibility to act in their best interests.

  1. "If you recognize you're really a fiduciary for the customer, you shouldn't make too much money." [1][2] This quote captures the essence of his belief that retailers should prioritize customer savings over excessive profits.
  2. "Our first duty is to our customers. Our second duty is to our employees. Our third duty is to our stockholders." [3] This hierarchy, which inverts the typical corporate focus, was a cornerstone of his success. [3]
  3. "Everything we sell is guaranteed unconditionally. We will give an immediate cash refund to any customer not completely satisfied with a purchase made at FedMart. No questions asked." [1] This demonstrates his absolute commitment to customer satisfaction and trust.
  4. "If you want to be successful in retail, just put yourself in the place of a cranky, demanding customer." [3] This highlights his focus on understanding and addressing even the most challenging customer perspectives.
  5. He treated business as a fiduciary relationship where you represent the customer, not sell to them. [3]
  6. When competitors sold items below cost, Sol Price would post signs advising customers to buy those products at the rival stores, cementing his role as a true advocate for the consumer. [2]
  7. The foundation of the fiduciary relationship with customers was built on consistently high-quality merchandise and consistently low prices. [1]
  8. He infused his employees with the belief that they were representing the interests of the customer. [1]
  9. He avoided sales and advertising, believing that they were gimmicks that eroded trust. [4]
  10. His goal was to build a long-term relationship with customers based on honesty and fairness. [1]

On Employees: The Core of the Business

Price understood that happy, well-compensated employees were essential to providing excellent customer service and driving business success.

  1. "You train an animal, you teach a person." [2] Price believed in educating his employees on the "why" behind their tasks, not just training them on the "how."
  2. He paid his employees double the market rate, not out of charity, but because he believed you can't deliver exceptional customer value through mediocre employees. [3]
  3. "You must feel confident that you are working for a fine and honest company." [1] He communicated this to his employees, fostering a sense of pride and loyalty.
  4. His philosophy was that every employee should be able to run the business if the owner disappeared, emphasizing the importance of teaching principles over procedures. [3]
  5. He was committed to the idea that paying good wages and benefits would attract better employees who would remain loyal. [1]
  6. Providing excellent compensation and treating all employees as part of the team would result in better job performance, loyalty, and honesty. [1][5]
  7. The success of his companies was based on being the lowest-cost operator, but low operating expenses were never achieved by short-changing employees. [1]
  8. He offered fair compensation and profit-sharing opportunities, which were revolutionary concepts at the time. [5]
  9. He believed that in retail, your employees ARE your product, as they are the ones directly serving the customers. [3]
  10. His approach to human capital was built on the fundamental belief that treating employees well would create superior business outcomes. [2]

On Business Strategy: Counterintuitive Brilliance

Sol Price's strategies often went against conventional retail wisdom, leading to groundbreaking innovations.

  1. "The intelligent loss of sales turns conventional wisdom on its head, postulating that customer demand is most sensitive to price, not selection." [2][3] This was his rationale for offering a limited selection of products at the best possible prices.
  2. "Put simply, the cost to deal with 4,500 items is a lot less than the cost to deal with 50,000 items." [3] This highlights his focus on operational efficiency and simplicity.
  3. "Fortunately, most of us had backgrounds that were alien to retailing. We didn't know what wouldn't work or what we couldn't do." [3] This suggests that a lack of preconceived notions can lead to innovation.
  4. He pioneered the membership warehouse concept, turning every retail convention upside down with fewer products, concrete floors, and higher wages. [3]
  5. His core business philosophy was simple: drive operational efficiencies to save on costs, and then pass these savings onto customers. [1]
  6. He believed in operating on the lowest possible markup rather than the deepest discount. [4]
  7. He was a pioneer of the "low margin" retail concept, marking up products just enough to cover costs. [6]
  8. The minimalist warehouses with strictly limited SKUs and bulk packaging were all innovations he introduced in the 1960s. [7]
  9. He had a knack for smart property deals, which was also a component of his business success. [7]
  10. The Price Club business model was initially conceived as a wholesale business selling to small, independent businesses. [1]
  11. He understood that simplicity scales, while complexity compounds costs exponentially. [3]
  12. He was not the first to use a membership model, but he perfected it to build a loyal customer base and circumvent "fair trade" laws that mandated minimum pricing. [7]
  13. After being fired from FedMart at 60, he started Price Club with just $50,000, demonstrating his resilience and entrepreneurial spirit. [3]
  14. He was willing to fight for what was right, even if it meant potentially losing, although he rarely did. [4]
  15. He admitted to being cautious about rapid expansion, a philosophy of close, hands-on management. [8]

On Life and Values: A Foundation of Integrity

Sol Price's business principles were a direct reflection of his personal values and his commitment to ethical conduct.

  1. "I've stolen—I actually prefer the word borrowed—as many ideas from Sol Price as from anybody else in the business." - Sam Walton, founder of Walmart, acknowledging Price's immense influence. [3]
  2. "I didn't learn a lot from Sol. I learned everything. Everything I know." - Jim Sinegal, co-founder of Costco and Price's protégé. [3]
  3. His actions were rooted in a value system that he learned early in life and from which he never strayed. [1]
  4. He believed that life can and should be lived with purpose and in the right way. [1]
  5. His life was a testament to the truth that success can be achieved by acting in the right way. [1]
  6. He had a real conscience that was only satisfied by giving the best deal he could to just about everyone. [4]
  7. He was a mentor who left a lasting impact on icons like Jim Sinegal, focusing on personal integrity and business ethics. [4]
  8. He remained open to learning from others, even as a seasoned entrepreneur, and was willing to adapt ideas. [4]
  9. He recognized the responsibility that came with wealth and turned his attention to impactful philanthropy. [9]
  10. His charitable work focused on creating real change for the disadvantaged, particularly in education and community development. [4]
  11. He taught his son, Robert, to be humble, to appreciate the unpredictability of life, to care for people, and to remain hopeful. [1]
  12. He was known for his integrity, intelligence, and strength, which made people want him in their corner. [4]
  13. He had a big amount of self-knowledge, recognizing that he was best at creating a business, not necessarily running or growing one long-term. [4]
  14. His immigrant background and high parental expectations shaped his drive and motivation to overachieve. [10]
  15. He believed that a company has an obligation to serve society, not just to make money. [1]

Learn more:

  1. Sol Price: Retail Revolutionary and Social Innovator by Robert Price - The Rabbit Hole
  2. Sol Price: Retail Revolutionary & Social Innovator - My Ledger
  3. Sol Price Retail Revolutionary: How a misfit lawyer accidentally invented modern retail and taught everyone from Sam Walton to Jeff Bezos and James Sinegal - Daniel Scrivner
  4. Sol Price: Retail Revolutionary & Social Innovator by Robert E. Price | Goodreads
  5. Sol Price by Robert E. Price: 13 Minute Summary - YouTube
  6. Sol Price Summary of Key Ideas and Review | Robert E. Price - Blinkist
  7. Sol Price: Retail Revolutionary & Social Innovator - Aurora UK Alpha
  8. Solana Next 24 Hours Prediction: Today, Tomorrow, Next Week (SOL/USD) - Traders Union
  9. Solana price today - SOL price chart & live trends - Kraken
  10. Solana (SOL) Price Set for Breakout After 36-Day Consolidation as Mutuum Finance (MUTM) Gears Up to Skyrocket in 2025 - Mitrade