Episode
How Costco Makes Money on the Membership Not the Merchandise
- Podcast
- Business Models Explained with Fexingo: Subscription, Marketplace, SaaS, and Service Companies
- Published
- Jun 17, 2026
- Duration seconds
- 651
- Processing state
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Summary
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