How are Costco prices so low?

[Joes Place]

How on earth do they stay in business or is EVERYTHING else simply marked up?

Banana Republic shorts (at Costco last month) - $16 per pair. Similar shorts on BR's website? $60

The quality is not the same.

Same for the Union Bay cargo shorts they sell; material is much thinner and less durable.
They're selling the Outlet Mall versions (yes, Outlet Mall stuff is not always "leftover/overstocks" - major brands have figured out the masses will buy cheaper quality stuff with their labels on it, and be happy as clams - never knowing the stuff in the actual store is a LOT finer quality)

 

[QChawks]

And it's pretty good pizza.

Or at least it was pre-pandemic. Has it changed?

it's not great

 

[unsubstantiated]

I believe that the chicken is a loss leader. They do them to get you in the door to buy everything else with a 10% markup.

They have admitted as much.

 

[tarheelbybirth]

It is pretty incredible. Some of the deals I have got there are like 75% less than what the same quantity would cost elsewhere.

The most consistent mind blowing one there is for me is the giant Rotisserie Chickens, about dang near twice the size of what you get at Walmart or Publix, that are $4.99. I always grab two or three and carve up the spare (s) for lunches that week and we feast on the other when we get home. A ton of good chicken/protein for 10-15 bucks.

We get one of those about every other week...best buy in the store and a loss leader for Costco. According to their CFO those birds cost them something north of $30M/year.

 

[joelbc1]

How on earth do they stay in business or is EVERYTHING else simply marked up?

Banana Republic shorts (at Costco last month) - $16 per pair. Similar shorts on BR's website? $60
Organic Blue Agave - $10.99 (2-pack 64oz). One 44oz bottle at HEB (local grocer) is $10.99.
Extra Virgin Oil Oil - $15.99 (2 Lt bottle). HEB Organic Extra Virgin Olive Oil 25oz $8.57

...and the list goes on.

It can't be because of an annual membership. Heck, even their gas is significantly cheaper than anyone.

Even a bigger mystery for me ....Explain how a thermos keeps hot stuff hot and cold stuff cold?? How do it know??

Costco's "best buy" (IMHO) are their "Kirkland" 3 piece golf balls.....2 dz. for $24! And it is a very serviceable and durable golf ball.

 

[joelbc1]

it's not great

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The hot dogs are to die-for!

 

[tarheelbybirth]

The hot dogs are to die-for!

And they built their own hot dog plant to keep the price for their deal at $1.99.

 

[ping72]

Your (incorrect) opinion.