3 ms·
> 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.
by 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 agoI 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 agoIts 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 agoSomeone above mentions: "Costco has a markup cap of 15%"
- pdntspa 3y agoIs this true for the obnoxiously expensive ($10k+ in many cases) liquor cabinets they keep?
- rrrrrrrrrrrryan 3y agoThey sell some items at a loss.