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I can appreciate why Costco appeals to people. I would go maybe 1-2 times a year to pick up a few items. That said, once they started hard enforcing the card sh

I can appreciate why Costco appeals to people. I would go maybe 1-2 times a year to pick up a few items. That said, once they started hard enforcing the card sharing policy and then proceeded to literally scream at me that I couldn't use my fathers card, while in line, I decided to not give them my business ever again. I had used his card a couple times before without any issues. It wasn't even a busy day and I really didn't get the hostility that I received. Certainly, I got some stressed out check out person, but wow... me never going back there again is going to cost them a whole lot more in the long run, than them missing out on my membership fee from my occasional visit.

kgermino 3y ago
> me never going back there again is going to cost them a whole lot more in the long run, than them missing out on my membership fee from my occasional visit. That’s actually not really true for Costco. They famously break even on selling merchandise as a way to sell the memberships. It’s unfortunate but the model really doesn’t care about occasional visitors like you. Not excusing the attitude, that sounds completely unacceptable, but blocking shared memberships is core to their approach.
- latchkey 3y ago
  I find it hard to believe that they don't profit on their products at least a bit. Certainly there are some they don't get a profit on, but it wasn't like I was in there just buying a cheap tv and walking out... I was buying regular stuff.
  - Skunkleton 3y ago
    Its their model. Its discussed in TFA too.
  - dragonwriter 3y ago
    > I find it hard to believe that they don’t profit on their products at least a bit. Basically, they don’t. Over recent years, membership fees have accounted for, from what I can find, a low of 80% to a high of 110% of their net income, usually sitting right around 100%, and that’s not an accident, its their well-documented deliberate business model. Selling stuff covers the costs associated with being able to sell the stuff, membership fees are what provides profit.
    - latchkey 3y ago
      Someone above mentions: "Costco has a markup cap of 15%"
      - pdntspa 3y ago
        Is this true for the obnoxiously expensive ($10k+ in many cases) liquor cabinets they keep?
      - rrrrrrrrrrrryan 3y ago
        They sell some items at a loss.
tracerbulletx 3y ago
They yelled at you because dealing with 1000 people who think they're special and can break the rules everyday and it's not a big deal is infuriating.
- latchkey 3y ago
  I honestly didn't know they were enforcing the rule because it had worked just fine before. I had no attitude or thinking I was special, I just got immediately screamed at.
  - wvenable 3y ago
    So you "stole" from them many times and then were surprised by the reaction the one time you got caught. You just felt justified because you didn't understand their business model.
    - latchkey 3y ago
      I usually don't tell people how they feel. I honestly didn't know it would be a big deal that my dad didn't go with me to the store to buy things.
      - genocidicbunny 3y ago
        To be fair, your dad should have. It's in the membership agreement and has been there for a very very long time. Doesn't excuse being yelled at, but your dad should have been aware of this and warned you that they might deny you if you go alone without him.
        latchkey 3y ago
        My whole gripe isn't about getting 'caught', it is about getting literally yelled at.
        genocidicbunny 3y ago
graton 3y ago
You aren't "giving them" your business. They don't want your business if you don't have a membership. It would be like saying I'm not giving Netflix anymore of my business since they won't let me use my dad's password.
- latchkey 3y ago
  Different with Netflix, you don't buy actual products that they also profit on.
  - graton 3y ago
    Not with their new advertiser supported plan ;)
  - dragonwriter 3y ago
    > Different with Netflix, you don’t buy actual products that they also profit on. You don’t do that at Costco either, except by accident: Costco by design breaks even (there’s some variability because planning and reality diverge) on everything else and makes money on membership fees. That’s the value proposition: you pay for a membership, and you get stuff at what it costs Costco to get it to you.
    - deanmoriarty 3y ago
      Costco electronics are often times priced very similarly to Best Buy and any other major retailer (see for example Apple MacBook and iPad, which are items that I regularly happen to buy every few years so I actively keep an eye on their price trends). If Costco is breaking even on them, are you implying that also the other retailers are? Otherwise, are they not, actually, just breaking even on every item? Tons of people buy their Apple electronics at Costco, so I have to assume it is a significant percentage of their revenue.
      - johnnyanmac 3y ago
        Can't speak for all tech, but I think Apple has very careful price controlling on their products. I wouldn't be surprised if retailers don't make as much on them but keep them to draw shoppers in. For other tech, it's up in the air. Maybe Costco does make a profit but not as many people buy tech at Costco than at Best buy, for instance.
sushid 3y ago
So you were not a member and tried to use their services but they gave you a hard time? That's like getting kicked out of Disneyland using someone else's ticket and complaining that they're not taking your business. Costco makes the bulk of their profit from membership fees so you not getting to use their members-only service is exactly what they want to enforce.
TMWNN 3y ago
>then proceeded to literally scream at me that I couldn't use my fathers card https://tenor.com/view/doubt-press-x-press-la-noire-gif-18717264 https://tenor.com/view/doubt-press-x-press-la-noire-gif-1871...
neilv 3y ago
The slide deck talks about how they break even on sales, and make their profit only on the membership fees. Interestingly, there was a bit in there about (deck dated 2018) "27% of all US households are cardholders". But I don't know why the employee screamed at you. I can understand you not wanting to return to a store where that happened.
- insane_dreamer 3y ago
  > Interestingly, there was a bit in there about (deck dated 2018) "27% of all US households are cardholders". That is hard to believe.
insane_dreamer 3y ago
Not acceptable that you got yelled at, but it's a bit like using someone else's ski pass; you'd get kicked off the mountain (and probably yelled at). Their business is the membership, not profits on merchandise.
maximinus_thrax 3y ago
The entitlement in this comment is astonishing by any standards. Truly something to behold. I'm amazed someone lacked the self-awareness to consider posting something like this not only acceptable but even as a sort of call for sympathy. You will not be missed, neither by Costco nor by paying members. I'm skeptical a Costco employee 'literally screamed' at you, that's grounds for getting fired. Per Occam's razor, I think it's more likely you're not used to people confronting you when you're in the wrong and this often gets misunderstood as 'hostility'.
- latchkey 3y ago
  > even as a sort of call for sympathy. No call for sympathy, at all. At the end of the day, it is a box store. Nothing more, nothing less. It really isn't that big of a deal... I just won't go back. ¯\_(ツ)_/¯. > I'm skeptical a Costco employee 'literally screamed' at you, that's grounds for getting fired. Fine to be skeptical, but it happened.
  - ZeroSolstice 3y ago
    > It really isn't that big of a deal... I just won't go back. ¯\_(ツ)_/¯. Why bother spending the time making a comment and subsequently replying to other comments. These actions seem to conflict with what you are saying.
    - latchkey 3y ago
      I thought I was sharing an interesting story and different perspective on things. Which did generate a lot of comments and feedback. I don't take the rather negative stuff said here personally and I learn and grow from these things. The feedback, good and bad, I've gotten on HN over the years has helped me a lot at a personal level. It is part of the benefit of speaking up on this site.
      - ZeroSolstice 3y ago
        Fair enough. A constantly tuned feedback-loop is certainly worth the effort. All the best.

kgermino 3y ago

> me never going back there again is going to cost them a whole lot more in the long run, than them missing out on my membership fee from my occasional visit. That’s actually not really true for Costco. They famously break even on selling merchandise as a way to sell the memberships. It’s unfortunate but the model really doesn’t care about occasional visitors like you. Not excusing the attitude, that sounds completely unacceptable, but blocking shared memberships is core to their approach.

latchkey 3y ago
I find it hard to believe that they don't profit on their products at least a bit. Certainly there are some they don't get a profit on, but it wasn't like I was in there just buying a cheap tv and walking out... I was buying regular stuff.
- Skunkleton 3y ago
  Its their model. Its discussed in TFA too.
- dragonwriter 3y ago
  > I find it hard to believe that they don’t profit on their products at least a bit. Basically, they don’t. Over recent years, membership fees have accounted for, from what I can find, a low of 80% to a high of 110% of their net income, usually sitting right around 100%, and that’s not an accident, its their well-documented deliberate business model. Selling stuff covers the costs associated with being able to sell the stuff, membership fees are what provides profit.
  - latchkey 3y ago
    Someone above mentions: "Costco has a markup cap of 15%"
    - pdntspa 3y ago
      Is this true for the obnoxiously expensive ($10k+ in many cases) liquor cabinets they keep?
    - rrrrrrrrrrrryan 3y ago
      They sell some items at a loss.

tracerbulletx 3y ago

They yelled at you because dealing with 1000 people who think they're special and can break the rules everyday and it's not a big deal is infuriating.

latchkey 3y ago
I honestly didn't know they were enforcing the rule because it had worked just fine before. I had no attitude or thinking I was special, I just got immediately screamed at.
- wvenable 3y ago
  So you "stole" from them many times and then were surprised by the reaction the one time you got caught. You just felt justified because you didn't understand their business model.
  - latchkey 3y ago
    I usually don't tell people how they feel. I honestly didn't know it would be a big deal that my dad didn't go with me to the store to buy things.
    - genocidicbunny 3y ago
      To be fair, your dad should have. It's in the membership agreement and has been there for a very very long time. Doesn't excuse being yelled at, but your dad should have been aware of this and warned you that they might deny you if you go alone without him.
      - latchkey 3y ago
        My whole gripe isn't about getting 'caught', it is about getting literally yelled at.
        genocidicbunny 3y ago

graton 3y ago

You aren't "giving them" your business. They don't want your business if you don't have a membership. It would be like saying I'm not giving Netflix anymore of my business since they won't let me use my dad's password.

latchkey 3y ago
Different with Netflix, you don't buy actual products that they also profit on.
- graton 3y ago
  Not with their new advertiser supported plan ;)
- dragonwriter 3y ago
  > Different with Netflix, you don’t buy actual products that they also profit on. You don’t do that at Costco either, except by accident: Costco by design breaks even (there’s some variability because planning and reality diverge) on everything else and makes money on membership fees. That’s the value proposition: you pay for a membership, and you get stuff at what it costs Costco to get it to you.
  - deanmoriarty 3y ago
    Costco electronics are often times priced very similarly to Best Buy and any other major retailer (see for example Apple MacBook and iPad, which are items that I regularly happen to buy every few years so I actively keep an eye on their price trends). If Costco is breaking even on them, are you implying that also the other retailers are? Otherwise, are they not, actually, just breaking even on every item? Tons of people buy their Apple electronics at Costco, so I have to assume it is a significant percentage of their revenue.
    - johnnyanmac 3y ago
      Can't speak for all tech, but I think Apple has very careful price controlling on their products. I wouldn't be surprised if retailers don't make as much on them but keep them to draw shoppers in. For other tech, it's up in the air. Maybe Costco does make a profit but not as many people buy tech at Costco than at Best buy, for instance.

sushid 3y ago

So you were not a member and tried to use their services but they gave you a hard time? That's like getting kicked out of Disneyland using someone else's ticket and complaining that they're not taking your business. Costco makes the bulk of their profit from membership fees so you not getting to use their members-only service is exactly what they want to enforce.

TMWNN 3y ago

>then proceeded to literally scream at me that I couldn't use my fathers card https://tenor.com/view/doubt-press-x-press-la-noire-gif-18717264 https://tenor.com/view/doubt-press-x-press-la-noire-gif-1871...

neilv 3y ago

The slide deck talks about how they break even on sales, and make their profit only on the membership fees. Interestingly, there was a bit in there about (deck dated 2018) "27% of all US households are cardholders". But I don't know why the employee screamed at you. I can understand you not wanting to return to a store where that happened.

insane_dreamer 3y ago
> Interestingly, there was a bit in there about (deck dated 2018) "27% of all US households are cardholders". That is hard to believe.

insane_dreamer 3y ago

Not acceptable that you got yelled at, but it's a bit like using someone else's ski pass; you'd get kicked off the mountain (and probably yelled at). Their business is the membership, not profits on merchandise.

maximinus_thrax 3y ago

The entitlement in this comment is astonishing by any standards. Truly something to behold. I'm amazed someone lacked the self-awareness to consider posting something like this not only acceptable but even as a sort of call for sympathy. You will not be missed, neither by Costco nor by paying members. I'm skeptical a Costco employee 'literally screamed' at you, that's grounds for getting fired. Per Occam's razor, I think it's more likely you're not used to people confronting you when you're in the wrong and this often gets misunderstood as 'hostility'.

latchkey 3y ago
> even as a sort of call for sympathy. No call for sympathy, at all. At the end of the day, it is a box store. Nothing more, nothing less. It really isn't that big of a deal... I just won't go back. ¯\_(ツ)_/¯. > I'm skeptical a Costco employee 'literally screamed' at you, that's grounds for getting fired. Fine to be skeptical, but it happened.
- ZeroSolstice 3y ago
  > It really isn't that big of a deal... I just won't go back. ¯\_(ツ)_/¯. Why bother spending the time making a comment and subsequently replying to other comments. These actions seem to conflict with what you are saying.
  - latchkey 3y ago
    I thought I was sharing an interesting story and different perspective on things. Which did generate a lot of comments and feedback. I don't take the rather negative stuff said here personally and I learn and grow from these things. The feedback, good and bad, I've gotten on HN over the years has helped me a lot at a personal level. It is part of the benefit of speaking up on this site.
    - ZeroSolstice 3y ago
      Fair enough. A constantly tuned feedback-loop is certainly worth the effort. All the best.