How Costco Makes Money Through Membership Not Markup

Costco raised its membership fee for the first time in years — basic from $60 to $65, Executive from $120 to $130. But the real story is how Costco's entire business model hinges on those fees, not the products it sells. In this episode, Lucas and Luna break down the economics behind Costco's famous 14% markup cap, the 90%+ renewal rate, and why the warehouse club's subscription-like model generates more profit than most software companies. They explore how Costco uses membership to build loyalty, fund low prices, and create a virtuous cycle that competitors struggle to replicate. If you've ever wondered why Costco sells a hot dog and soda for $1.50 — and has for decades — this episode explains how that loss leader feeds a multi-billion-dollar profit engine. #Costco #MembershipModel #BusinessModels #Retail #Subscription #Loyalty #PricingStrategy #WarehouseClub #ProfitMargin #Business #Finance #RetailStrategy #FexingoBusiness #BusinessPodcast #CostcoBusinessModel #MembershipEconomy #CustomerLoyalty #Wholesale Keep every episode free: buymeacoffee.com/fexingo