How Does Costco Make Money?

Editor’s note: The member figures in the video are in thousands, so the 51,600 member number cited is actually 51.6 million paid members. You might think that Costco is your average retailer… but it’s not. The “everything in bulk” store sells cleaning supplies, jeans, pet food, and anything in-between, but Costco doesn’t actually make much money on the merchandise it sells. In this video, we’re going to break down exactly where the cash really comes from for Costco. According to the company’s 2018 results, it sold $138 billion in merchandise — that’s a lot of Kirkland brand trail mix and discount prescription glasses. The products they sold cost the company $123 billion, leaving $15 billion for the business. BUT WAIT! We also have to account for all the company’s

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