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Perhaps it's related to the 'membership' marketing aspect. Checking to see if you have your membership card upon entry, and this strange little check when you l

Perhaps it's related to the 'membership' marketing aspect. Checking to see if you have your membership card upon entry, and this strange little check when you leave, cements into the customer that there is something special about Costco and only certain people can shop there. Maybe. I wonder how much of the membership aspect is marketing versus revenue?

mleo 8y ago
At my local Costco, they don't even check membership card upon entry anymore. Someone is standing there generally, but don't question when no card is presented.
- gnahckire 8y ago
  At mine, you can buy alcohol without a membership. But, they still check.
  - blihp 8y ago
    I think that's usually due to laws / regulations on alcohol sales.
  - SOLAR_FIELDS 8y ago
    In Texas they are legally required to sell you alcohol without the membership. They have a totally separate area with a different entrance for the liquor store in every Costco in Texas that I have been to. I tested the theory that they will have to let you in/sell it anyway in the main store because they still sell beer and wine in the main store. To give some context, in Texas, you can buy any beer/wine in a "grocery" store i.e. Costco, but hard liquors must only be sold from a licensed liquor store. So with that in mind and without a Costco membership I loaded up on a case of beer and some wine only in the main store and took it to the checkout. They subsequently refused to check me out in the main store and sent me to the liquor store with the outside entrance. I wonder what would have happened if I had tried to purchase beer or wine in the same fashion on Sunday (liquor stores must be closed on Sunday per Texas law, but selling beer/wine in grocery stores like Costco on Sundays is legal). I think they would have been legally required to sell me beer/wine in the main store if so, and even though they probably would have refused as before I believe if challenged/complained this practice of refusing to sell beer/wine to non-members inside the store would not be ruled legal by TABC (the state commission in Texas that governs alcohol sales). It would be an interesting niche law to explore if you were interested in challenging Texas laws regarding sale of alcohol I guess.
rconti 8y ago
Back in the day, it used to be hard to be a Costco membership (late 80s/early 90s). I recall that only people who worked at certain companies (Boeing comes to mind) could get memberships. It's not considered an exclusive thing anymore, though, since membership only costs, what, $55?
- blihp 8y ago
  Even 10 years ago parts of it were more exclusive than today: you used to need to pay for the Executive membership to get the monthly coupons and other offers that all members can get now. I'm sure they crunched the numbers and realized they were leaving money on the table by doing that.
bostonpete 8y ago
> Maybe. I wonder how much of the membership aspect is marketing versus revenue? In 2016, membership fees accounted for 72% of their operating income. It's definitely not just "marketing" -- it's central to their business model. If they started jacking up the margins on merchandise, people would notice and their memberships would start to drop off.

mleo 8y ago

At my local Costco, they don't even check membership card upon entry anymore. Someone is standing there generally, but don't question when no card is presented.

gnahckire 8y ago
At mine, you can buy alcohol without a membership. But, they still check.
- blihp 8y ago
  I think that's usually due to laws / regulations on alcohol sales.
- SOLAR_FIELDS 8y ago
  In Texas they are legally required to sell you alcohol without the membership. They have a totally separate area with a different entrance for the liquor store in every Costco in Texas that I have been to. I tested the theory that they will have to let you in/sell it anyway in the main store because they still sell beer and wine in the main store. To give some context, in Texas, you can buy any beer/wine in a "grocery" store i.e. Costco, but hard liquors must only be sold from a licensed liquor store. So with that in mind and without a Costco membership I loaded up on a case of beer and some wine only in the main store and took it to the checkout. They subsequently refused to check me out in the main store and sent me to the liquor store with the outside entrance. I wonder what would have happened if I had tried to purchase beer or wine in the same fashion on Sunday (liquor stores must be closed on Sunday per Texas law, but selling beer/wine in grocery stores like Costco on Sundays is legal). I think they would have been legally required to sell me beer/wine in the main store if so, and even though they probably would have refused as before I believe if challenged/complained this practice of refusing to sell beer/wine to non-members inside the store would not be ruled legal by TABC (the state commission in Texas that governs alcohol sales). It would be an interesting niche law to explore if you were interested in challenging Texas laws regarding sale of alcohol I guess.

rconti 8y ago

Back in the day, it used to be hard to be a Costco membership (late 80s/early 90s). I recall that only people who worked at certain companies (Boeing comes to mind) could get memberships. It's not considered an exclusive thing anymore, though, since membership only costs, what, $55?

blihp 8y ago
Even 10 years ago parts of it were more exclusive than today: you used to need to pay for the Executive membership to get the monthly coupons and other offers that all members can get now. I'm sure they crunched the numbers and realized they were leaving money on the table by doing that.

bostonpete 8y ago

> Maybe. I wonder how much of the membership aspect is marketing versus revenue? In 2016, membership fees accounted for 72% of their operating income. It's definitely not just "marketing" -- it's central to their business model. If they started jacking up the margins on merchandise, people would notice and their memberships would start to drop off.