Reply to What is making Costco so expensive?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I'm not sure I get this thread.[b]  Costco makes its money on the membership fees and sells most items at a very low gross margin [/b]particularly compared to WalMart or Target.  That's not to say that every single thing is cheaper at Costco or that you cannot find a lower quality alternative elsewhere that will meet your needs but generally Costco delivers value.[/quote]Costco is a publicly traded company beholden to a Board of Directors and major shareholders. Costco, therefore, must squeeze out every dime it can, so if they have to charge $50 for a bag of pistachios and up the membership fee to $200 they will do so because the shareholders demand it to be so.  [/quote]

Costco is indeed a publicly traded company which means its financial information is public information.

If you think that Costco "must squeeze out every dime it can" from members, you frankly have no understanding of Costco as a company or what has made it a great business.

I promise you Costco is not squeezing its members making a mere $7 billion of net income on $250 billion of sales (< 3% margins) in 2024. [/quote]

Especially because Costco is locking money out of the store by charging prices so low that they are so crowded that people literally can't get through the the store to get items and pay.

But maybe that's like the gym gimmic of selling memberships that they don't intend people to use? [/quote]

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