Categories: Check It Out

10 Tricks Costco Uses to Make You Spend More Money

Photo by dennizn from Shutterstock

8. Building loyalty through a membership

According to Costco’s own SEC filings, a decisive and major component of their success is “a perception among members of … consistently providing the most competitive values.” While in the vast majority of cases this is true, they are largely able to do so through the use of membership fees.

These fees have “a significant effect on profitability,” they explain, and are able to “reinforce member loyalty.” Because they are incurred before the shopping even begins, most shoppers don’t take them into account when they consider the price of an item from Costco, and thus think they are saving more than they truly are.

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View Comments

  • It sounds like Costco have a good business plan. Plus, all of the employees are friendly and helpful. Also most customers are the same.

  • I love Costco we shop there quite often good food and great service prices are great also

    • I absolutely love COSTCO, I have a membership and I don’t even live near a COSTCO. I wish they would put one in Buffalo N.Y. . Our closest Costco is in Rochester, NY. I would be there 3 times a week if it were here.

  • I love Costco cause I hate to shop and since there is only me. I can go to Costco once a month get all my paper goods laundry supplies and fresh fruit and vegetables and be done. Also their meat is delicious and priced well.

  • I love Costco,they have great marketing strategies. Always enjoy the samples and buy what I enjoy.
    Thank you Costco.

  • Until the Corona Virus is stopped, Costco should stop the free sample food.
    That is just plain stupid.

  • I've been a member of Costco since 1982 and has always had great service, good return policy, items that I really need, variety and overall haven't found another service to match. always look for Costco on our trips as that is where the deals are.

  • Costco is a great bricks and mortar store! I can see it, feel it, buy it. You pointed many reasons people like to shop there. Plus, Costco doesn't just buy stuff and put it on the shelves; they test those products! And, if the product has "Kirkland" brand on it, I know it is a good one.

  • We're getting one in 2022, can't wait. I don't eat samples and let people with a couple of items go in front of me.

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