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> they apparently do this not to make more money, but just so they can pass the savings on to the consumer ...so that consumers buy more/are more likely to buy
by earenndil 7y ago
> they apparently do this not to make more money, but just so they can pass the savings on to the consumer
...so that consumers buy more/are more likely to buy, making them more money. Which is kind of the point of the article.
- samatman 7y agoAs pointed out elsewhere on this page, Costco doesn't even make their profit on volume. Costco's annual profit is approximately equal to their membership fees and always has been. The relentless focus is on customer satisfaction, nothing more. They want you to come back next year. That's it.
- dragonwriter 7y ago> Costco doesn't even make their profit on volume. Volume is essential to their profitability, and not just because it's what justifies membership for customers; they are unit profitable on sales, but without sufficient volume that wouldn't offset fixed costs.