Its simply that the inventory they sell is most likely priced in such a way that it covers the cost of the product and its existence inside of the warehouse. Co

Its simply that the inventory they sell is most likely priced in such a way that it covers the cost of the product and its existence inside of the warehouse. Costco has very aggressive vendor terms and they sell the inventory before they are having to pay the vendor for it. Said another way, they break even or have slight margin on selling products, this includes the executive membership annual check.