How Costco Makes Money on the Membership Not the Merchandise

Episode 57 of Business Models Explained with Fexingo breaks down the Costco business model: why the warehouse giant earns most of its profit from membership fees, not the stuff it sells. Lucas and Luna walk through the numbers — membership revenue versus net income, the 14 percent gross margin cap, and how Kirkland Signature turns a commodity into a loyalty driver. They also touch on the tensions of raising the fee and the limits of the model outside the US. If you've ever wondered how a retailer can sell a hot dog for a buck fifty for forty years and still thrive, this episode is for you. #Costco #MembershipModel #RetailStrategy #KirklandSignature #BusinessModel #SubscriptionRevenue #WholesaleRetail #GrossMargin #LoyaltyProgram #PricingStrategy #RetailEconomics #WarehouseClub #Business #BusinessModels #FexingoBusiness #BusinessPodcast #PodcastEpisode #RetailTrends Keep every episode free: buymeacoffee.com/fexingo