Costco is known as one of the main supermarket chains in the United States and one of its main requirements is to have a membership to be able to buy locally.
Its wide variety ranges from food, furniture, to fuel refueling services, always under its distinctive membership model.
This strategy not only improves Costco’s operational efficiency, but also offers more competitive prices to its users.
How much does Costco membership cost?
Prices set by Costco range from $60 for casual customers to $120 for executive membership.
The company notes that with minimal consumption, customers can easily recoup the initial investment of the annual membership fee.
Although there are competitors that do not require an access fee, millions choose to pay for Costco membership annually, evidencing its appeal.
Costco’s economic success is based on its membership system. In fact, 72% of their profits come directly from these fees.
The strategy behind it is simple: by having this source of income, they can offer products at lower prices, reducing their profit margins on sales.
How much money has Costco made from its memberships?
In the last year, Costco reported revenue of $6.2 billion, of which $4.6 billion comes exclusively from membership dues.
These numbers underscore how Costco has managed to become profitable with a business model that deviates from the conventional.
Costco reaffirms that its membership model is a win-win
For the company, it means a stable source of income.
For the regular customer, it means significant savings in the long term, making the membership fee a highly profitable investment thanks to the reduction in the price of the products.