Re: Costco membership- worth it?
Date: November 28, 2012 08:34AM
run the numbers Wrote:
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> Tough One Wrote:
> --------------------------------------------------
> -----
> > I'm so glad not to be a Costco "member"
> anymore.
> > For that $50 a year, you are stuck with long
> > lines, overcrowded aisles, and barely any
> savings
> > at all.
>
> Watched a Costco special on CNBC not too long ago.
> Basically, virtually all of their profit comes
> from the membership fee, and nothing in the store
> is marked up more than 15%, most a lot less than
> that. Their corporate profit margin is about 2%,
> so they are selling you stuff at damn near their
> cost to buy it. Walmarts margins are at 5%, and
> Targets are even higher at 7%. On balance, you
> will save $ shopping at Costco over
> Walmart/Target, but a lot depends upon how much
> you buy and what types of goods.
CNBC is the shit. Interesting if that is where their main source of income is, because they have been quite profitable over the years. Then again, conventional grocery stores are very tight on that, just barely clearing a profit in many areas. Yeah probably overall savings if the right items are bought indeed, can be had, such as baby formula, diapers, and that sort of stuff. Actually to Costco's credit, also their OTC meds for Kirkland are a bargain.