Tuesday, November 27, 2012

Walmart v. Costco

A good post by Megan McCardle on the differences between the two.  Surprising fact:

    "One final thing that's worth pointing out is that Costco doesn't even make money selling the groceries and  the six person hot-tubs.  Their annual membership fee revenue exceeds their net profit--which is to say that the actual business of selling stuff is operating at a loss.  They're charging you an annual fee to buy stuff at or near cost". 

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