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I want to live like Costco people

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Re: I want to live like Costco people

#161

Post by dahinds »

hn_acc1 wrote: post #126
throw0101c wrote: post #118

Always found Costco's largest source of profits interesting: > Revenue from membership fees accounts for the majority of the company's profits, accounting for over 72% of the company's net operating income in fiscal years 2022 and 2023, and 65.5% in fiscal year 2024.[115][a] * https://en.wikipedia.org/wiki/Costco#Business_model

I always found that weird because we get like 5x our membership dues back in rewards every year, so I guess we're the exception, rather than the rule?

The claim could be true even if every customer is exactly like you. The implication is that Costco doesn't really make money selling stuff, they just need to roughly break even. And "breaking even" here includes paying rewards on purchases. The fact that you earn a lot of rewards doesn't stop your membership dues from contributing to Costco's bottom line.

Re: I want to live like Costco people

#162

Post by tekla »

skeeter2020 wrote: post #110
jsbisviewtiful wrote: post #94

Earlier quoted context omitted.

Costco is a store... where coffee, usually gas and most food + home goods are reliable in quality and priced well comparatively. Comparing the price of salmon fillets at Costco to Whole Foods or elsewhere is eye-opening. Would I buy clothes or furniture from Costco? No - because both are bland. The end. If the writer wants to make it anything more than that... They are a bit too obsessed with self-image vs wasting mo…

>> Would I buy clothes or furniture from Costco? Careful - even Gen-Z is looking at Kirkland clothing for certain pieces, and some furniture (like the Murphy bed I bought from them) is better when it's bland and greige

I paid like $30 for Jeans from Costco 3 years ago and I'm shocked at how well its held up considering I wear it 90% of days.

Re: I want to live like Costco people

#163

Post by throw0101c »

fckgw wrote: post #91
OutOfHere wrote: post #77

Earlier quoted context omitted.

Good comment, but IMHO the main reason to not love it so much is the annual membership fee. It sits well with cult cultivation. Other stores don't require it and they don't form a cult around them.

Costco derives the majority of their revenue from the membership fee, followed by services. They actually make very little on the products themselves as they have a hard cap on markups at like 11% or something around there. The membership is the whole reason they can offer the deals they do.

> Costco derives the majority of their revenue from the membership fee […]

Costco derives the majority of their profits from the membership fee:

* https://en.wikipedia.org/wiki/Costco#Business_model

Re: I want to live like Costco people

#164

Post by gib444 »

I've been to Costco (UK) a couple of times. It mostly seems to be: 4x the quantity for 4x the price (i.e. same price as any other store). I don't get it? I honestly think a large majority of people think it being in bulk MUST equal a saving?

Is it just for like catering companies or families of 20 where the bigger size is kind of helpful?

They do some nice discounts on Macs online though (can't say I'm a fan of their customer service either though based on my experience returning a Macbook)

Re: I want to live like Costco people

#165

Post by etimberg »

ASinclair wrote: post #150
yabones wrote: post #137

I get the allure, but it's not for me and my partner. We live in a small apartment. We drive a small car. The pantry has a good amount of dry bulk & canned food, but we largely shop one week at a time. Sure, we could "lock in" on two or three foods, buy weeks worth of them at a time, and save some money. But like most people we like a bit of verity. It's just not possible to buy such massive quantities of things with…

The thing is you can save a ton of money on a few non-food items to make it worth it. Just over-the-counter medicines save me a huge chunk of the membership fee. Then there are just random household goods: paper products, trash bags, dishwasher detergent, etc.

Glasses is another place where the savings are astounding

Re: I want to live like Costco people

#166

Post by aaronbrethorst »

I'm 43, own a home, live in Seattle, and feel attacked by this article.

"every Costco shopper has a certain item or two they’re compelled to purchase on each visit"

Organic, single-serving guacamole and Magic Spoon cereal for me.

My toddler is obsessed with their mammoth two dollar slices of cheese pizza and talks constantly about wanting to go to Costco to have pizza with his little bestie.

Re: I want to live like Costco people

#167

Post by canjobear »

paulinho1 wrote: post #46

I'm from East Asia, where every supermarket brand is basically the same aside from a few different products. When I moved to North America, this whole concept of tiered supermarkets felt really weird and exotic to me. Like, this is the most basic stuff you need, and you still need to tier it down? I'm kinda used to it now, but it still feels very American to me.

China at least has this. The stuff you get at the Ole Supermarket inside a shopping mall is different from the stuff you get from the little store facing the street on the ground floor of your apartment building.

Re: I want to live like Costco people

#168

Post by aaronbrethorst »

ASinclair wrote: post #150
yabones wrote: post #137

I get the allure, but it's not for me and my partner. We live in a small apartment. We drive a small car. The pantry has a good amount of dry bulk & canned food, but we largely shop one week at a time. Sure, we could "lock in" on two or three foods, buy weeks worth of them at a time, and save some money. But like most people we like a bit of verity. It's just not possible to buy such massive quantities of things with…

The thing is you can save a ton of money on a few non-food items to make it worth it. Just over-the-counter medicines save me a huge chunk of the membership fee. Then there are just random household goods: paper products, trash bags, dishwasher detergent, etc.

Renting a car once a year through Costco Travel is worth the membership fee.

Re: I want to live like Costco people

#169

Post by declan_roberts »

Once or twice a year I have a chance to go to costco in the middle of a work day and I'm absolutely blown away at how busy the place is at that time. People everywhere young and old, even kids! Long lines and nobody is rushed.

I want to live like Costco people because apparently they don't work in the middle of the day!

Re: I want to live like Costco people

#170

Post by jsbisviewtiful »

throw0101c wrote: post #146
skeeter2020 wrote: post #110

Earlier quoted context omitted.

>> Would I buy clothes or furniture from Costco? Careful - even Gen-Z is looking at Kirkland clothing for certain pieces, and some furniture (like the Murphy bed I bought from them) is better when it's bland and greige

> Careful - even Gen-Z is looking at Kirkland clothing for certain pieces […] I've heard good things about their wool socks.

They used to be better but I stopped buying them after COVID related supply chain problems lowered the quality, at least a few years ago. Dunno if they rebounded. Supposedly they are made in the same factory as Smartwool
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