[thanhhaimai]

And this is exactly why I only shop at Costco. While other retailers try to get me to buy more stuffs, Costco try to make sure I'm satisfied enough that I'll renew my yearly membership (their main profit source). The incentive structure aligns very well.

[Waterluvian]

Buying in bulk is about having the ability to both afford next week’s food this week and have the means to store it. Not to mention the annual subscription.

Responding to a comment about dollar stores preying on the poor with, “that’s why I shop at Costco” is… a choice.

[strix_varius]

The fact that the strategic wedge with which a successful, relatively socially-positive business manages to sustain itself isn't universally accessible doesn't negate its value.

The Venn diagram between people who shop at dollar stores and people who shop at Costco isn't empty.

[Dylan16807]

> the ability to both afford next week’s food this week

At minimum that's everyone on a normal paycheck, paid every two weeks. There are situations where someone couldn't get together a few days' pay at once, but that's a tiny fraction of situations.

And the means to store most food is a two foot square of space in a room somewhere. And then most of the rest fits in the empty fridge space you already have.

And there are deals there that can be useful for your wallet right away. This isn't something where you have to put up a ton of money for months before you benefit.

The biggest issue is probably that costco isn't easy to get to.

[LorenPechtel]

For me it's very simple: What I save on glasses pays for my membership. I don't go all that often but it's still worthwhile.

[andrew_lettuce]

This is true, but a valuable - and damning - observation that this variation in business model, that seems to be both decent and profitable, is so rare

[joncp]

... and a car to haul all that stuff, and time to drive to the nearest Costco.

It really is a luxury that a ton of people can't afford.

[buellerbueller]

not sure your comment is any less insufferable.

[gruez]

>While other retailers try to get me to buy more stuffs, Costco try to make sure I'm satisfied enough that I'll renew my yearly membership (their main profit source). The incentive structure aligns very well.

This doesn't make any sense. Costco makes a profit on the goods sold as well. They have every incentive to sell you as much stuff as possible. That's why they also engage in the usual retail tactics to increase sales, like having the essentials all the way in the back of the store, and putting the high margin items (electronics and jewelry) in the front. They might practice a more cuddlier form of capitalism than dollar general, but they're still a for profit retail business.

[xingped]

I see you're not terribly familiar with Costco. Membership fees account for the vast majority of net operating income for Costco and they keep markups on items at no more than 14% over cost (15% for Kirkland brand).

So yes, Costco does make most of its profit by ensuring customers are happy and continue to renew their memberships every year.

[andrew_lettuce]

Counter example: they sell their dollar hotdog and pop right at the front!