How Does Costco Even Make Money?

Описание: Everyone knows Costco for its huge warehouses, bulk products, and surprisingly low prices. Sometimes it feels like Costco is selling items for less than what they cost to make. So how can that actually work? And more importantly, how does a company like Costco still manage to earn billions in profit?

I took a closer look at Costco’s business model, and it turns out to be much more strategic than it appears at first glance. From membership fees to private label power and an ultra streamlined supply chain, Costco’s profit engine is full of surprising insights about retail and consumer behavior.

📊 BUSINESS ANALYSIS DISCLAIMER

This video analyzes Costco's business model using publicly available financial data from their Fiscal Year 2024 (ended September 1, 2024) 10-K filing, earnings calls, and verified business press.

KEY CLARIFICATIONS:
• Financial figures referenced as "2023" refer to Costco's Fiscal Year 2024
• "Barely clears 2%" refers to overall profitability context - Costco's actual net profit margin is 2.9%
• "Membership fees account for nearly all operating income" is analytical interpretation - official data shows membership revenue of $4.8B against operating income of $9.3B (representing over 50%)
• Some operational metrics (like turnover savings calculations) are industry-standard estimates
• Wage figures may vary by timing - official average was $31/hour as of Sept 2024

Official sources: Costco Investor Relations (investor.costco.com), SEC filings, Bloomberg, Fortune, CNBC

This is educational business analysis, not financial advice.