this post was submitted on 19 Jun 2024
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Costco's business model is wild if you look into it. Pretty much every item they sell is a loss-leader for their actual money maker - memberships.
They always get me on higher end frozen food items I end up wanting to try, even though they're not really a better deal than what I could get at Safeway.
I'd love to see how that works out for their higher end memberships, where you get money back for buying shit.
I think you have to spend something like $6000 over a year to make back the total cost of the membership... but that's not completely unreasonable if you get quite a few things there regularly.
(This is in Germany) My upper middle class Family of six spends around $250 a week on groceries, which comes out to over 15k a year, so that would definitely be reasonable for families etc.