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"CostCo sells everything at a fixed profit margin (I believe it's around 18% but I could be mistaken)." You're mistaken no they don't.
by jacobriis 6y ago
"CostCo sells everything at a fixed profit margin (I believe it's around 18% but I could be mistaken)."
You're mistaken no they don't.
- _underfl0w_ 6y agoStill waiting for the clarification. You nailed the denunciation, though.
- Eric_WVGG 6y agoYou're right, it's not fixed. It caps at 14% for outside brands, 15% for "Kirkland" brands, but averages at 11% (2019). https://www.inc.com/jeff-haden/how-does-costco-compete-with-amazon-by-doing-4-things-incredibly-well.html https://www.inc.com/jeff-haden/how-does-costco-compete-with-... Contrast to markups of 25 to 50% for typical retail, and for generic drugs in the thousands. https://www.thepharmaletter.com/article/1-000-pharmacy-mark-up-on-generics https://www.thepharmaletter.com/article/1-000-pharmacy-mark-...
- jjeaff 6y agoThat inc article is the only place I see those margin caps and it doesn't come sources. Other articles say that costco doesn't publish their margins. However, their financial statements do indicate an 11% average gross markup. But there are definitely plenty of products marked up more than 18% at Costco. Either that or they are paying way too much for some things.