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Costco also has market power to force better prices from its suppliers as well as decades of relationships with them and industry writ large. I’ve heard they’re
by ianai 3y ago
Costco also has market power to force better prices from its suppliers as well as decades of relationships with them and industry writ large. I’ve heard they’re employing someone to build lettuce growing capacity near certain logistics points. It was someones pet project to grow lettuce locally that costco picked up. If the free market is let to function, they should eventually be able to eat the lunch of the competition.
I bet they did something similar with eggs.
- acdha 3y agoOh, definitely. I just find it fascinating how much of a difference it makes - that upfront membership charge scares a lot of people away even though you can make it back with a single purchase on some individual items. The Econ 101 model wouldn’t have me thinking that big a gap would persist but it’s not exactly news that humans aren’t incredibly rational cost-minimizers.
- ianai 3y agoCostco yesterday looked pretty similar to walmart. The news might be out.