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It will be interesting to see how the required membership at the food court will effect sales. In sunny climates, such as Cali, a very high percentage of their food courts are outside which until recently didn't require memberships. I'd be willing to bet over half of the food sales at the outdoor food courts are by non-members.

 

honestly though i'm pretty sure the foodcourt is a loss leader for costco so i'd imagine they wouldn't care if they lose those non-member sales. I'd imagine with the prices at the foodcourt if anything its to drive business in and then next thing you know you've dropped $200+ on alcohol, pack of steaks and random knick knacks you didn't go in there thinking you needed lol

 

Those hot dogs and churros are pretty damn delicious tho.

 

If you had $20 to take someone on a date you'd go to Costco. Bottle of wine (or 2), dinner all for under $20 . Plus if you go on Sunday you can watch football

 

I'm pretty sure you're right. I recall reading/watching a bit on how Costco basically doesn't make any money through their food court, but rather from the purchases members make before/after their stop to get food.


Name one other place you can get a soda and hotdog for $1.50.

 

Some items are loss leaders for sure, such as the $1.50 hotdog and soda (also the $5 rotisserie chicken inside).

 

yeah , those loss leaders are some of my favorite things too so their strategy definitely works on me and i end up spending way to much money there. Upside though is if you have the costco credit card i recoup some of my reckless spending at the end of the year

 

edit - TW express no longer needed

 

That CC is legit.

 

My wife used to work at Costco, I'm pretty sure half of the stuff we own was purchased there. Bedroom and bathroom lights, clothes, electronics, I got my phone there for almost half price. While I'm sure they make at least a little bit of profit on the items they sell, their model is to sell product at the lowest price they can and then the majority of the profit actually comes from memberships. It's almost like a gym membership, they get all the membership money whether you come in and buy stuff or not so as long as they break even on the products they come out ahead.

 

Not an MLB stadium that’s for sure

 

This right here is what I've been told. I used to work at a place that supplied Costco Pharmacies there PCs / Servers. Per the contacts we had they make next to nothing on sales, it's just the memberships.

 

They make about 11.5% on margins. Memberships are where the profits come from.

 

11.5%!?! Margins for Grocers are usually in the 1 or 2% range.

 

Yeah but they sell more than just groceries, lawn chairs, clothing, tv's, computers, jewelry, etc...

 

Not only that, you get a lot of cashback offers on their partners. I think I got like 15% cashback when I bought/installed the AC unit for my house since they were partners with costco.

 

Coney Island in 1972

Did I win?

 

That right there makes it real hard for me to feel bad about how badly they're hurting right now. $8 hot dogs, $12-15 beers. Boo fuckin hoo theyre losing $

 

Not mine. SCS SR8 with a KO2 285/75/16 C-load... good for a spare $150

 

Cross posting for @Lygrin

https://www.tacomaworld.com/threads/yeti-tundra-65-cooler-tan.668628/