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How Costco Makes Money
Costco uses their membership fees to cover their fixed costs. They then make their real profit not on the low-margin goods they sell, but in their banking as they receive immediate payment from customers, but pay suppliers at around 270 days.
Costco’s a bank!
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Forum astuces on June 13th, 2011 4:01 pm
it’s a very good article, good idea!
Steve@FreshEgg.com on June 14th, 2011 2:44 am
Probably why Google were keen to move into the discount/group purchasing market!
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