How Costco Makes Money

Tony Talks Business

Tony Talks Business

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Costco sold two hundred and seventy billion dollars of groceries, tyres, televisions and chicken last year, and made about five billion from all of it. It collected five point three billion in membership fees, and kept nearly all of that. The cards made more profit than the shopping did.

This is how warehouse clubs actually make money, and why the shop floor is the part that never has to pay for itself.

0:00 The Trip
1:31 The Subscription
2:45 The Fee
4:32 The Renewal
6:19 The Cap
7:42 The Squeeze
8:57 The Shortlist
10:50 The Buyer
11:46 The Label
12:40 The Threat
14:19 The Overhead
15:34 The Wages
16:58 The Float
18:58 The Forecourt
19:56 The Chicken
21:32 The Upgrade
23:12 The Rival
24:22 The Verdict

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