Costco: Most Members Don't Shop There That Much

handygal2 · ‎01-19-2015

According to this article in USA Today, Costco depends more on membership fees than on shoppers, to make a profit.

I was surprised to learn that 75% of its profits are from membership fees. One third of their customers pay $120 for the Executive membership. (They also spend much more money at Costco than the Gold Star $60 members do).

Costco's business model is similar to gym memberships, where people join with good intentions, but then most don't take advantage of the services. The gym still makes a good profit catering to those who do, while still collecting the membership fees from everyone.

Here's link:

https://usat.ly/2w2XPR1

~~Be careful when you follow the masses. Sometimes the 'm' is silent.~~

momtochloe · ‎11-03-2013

Thanks for this article @handygal2. I am one of those people that don't visit the store very much anymore now that it's just me. When I was taking care of my mom I used to go there probably every other week. I keep the membership because I get both my house and car insurance through them plus I buy my gas there along with their version of Prilosec. I still look longingly at their ads but then have to remind myself I am only shopping for one now and I really don't need two 64 oz. jars of Hellman's . . .

Sooner · ‎03-10-2010

I have wondered if those stores like that are becoming less popular. We have a lot of options now and they don't offer as many choices.

We hardly ever go to Sam's now, and have never had Costco in this area.

faeriemoon · ‎03-14-2010

We have an Executive membership and shop there often. If I didn't shop there I am certain I wouldn't renew the membership each year.

It must be like gym memberships; people sign up but don't go.

BirdieGal · ‎12-20-2015

We actually do spend quite a bit at Costco or what we jokingly refer to as the $500.00 club.

We we have an Executive membership and sometimes it pays off quite nicely. Like last year when we had all new carpet installed through their program (local well known design store) that cost thousands, or when we buy jewelry. Other times what we spend ends up paying for the membership.

We don't buy a lot of food there simply because it is just the two of us now and so many of the products come in huge quantities. We have been buying these gorgeous rib cap steaks. We always buy our coffee pods there. Batteries as well.

chrystaltree · ‎05-10-2010

Most know people that, even people who get caught in the idea, know that they aren't really going to shop there often. Perhaps not at all. The idea hooks people in. Exactly like fitness centers. I'm was one of those people. Way back when the kids were young. I imagined all the all the money I would save if I bought 50lb jars of mustard and toilet paper by the kilo...lol And then I realized that buying in bulk didn't mean I was getting a bargain. Wandering around a wharehouse actually cost us more money because we would buy stuff we neither needed nor wanted just because it was there. It was entertainment for my parents. They'd spend a whole morning at Costco and pick up all manner of stuff and then they'd give it away to people because they didn't need huge quantities of anything. I don't know if they are still as popular as they were.

dex · ‎03-09-2010

Our costco is always really busy but we only shop there twice a month.i would be shocked if Costco started closing some of its stores.I do prefer to buy smaller amounts of food products these days and I can shop sales in others stores and have less waste.

itsmagic · ‎08-08-2011

We have a new Costco opening next month in our area. Costco has a bunch of kiosk set up around town selling memberships. I've been wavering on whether to join. We have had a Sam's for several years and I joined it for about a year when it first opened but found that with just the two of us I wasn't really shopping there that much.

Lucky Charm · ‎03-09-2010

We went into one with a temp pass or whatever-- one time. I'm not interested in buying in bulk for anything. Our primary residence is a tiny cottage. (I keep my turkey roasting pan at my sister's house!)

I wanted to see their selection for organic products, vegetables, fruits, cleaning products, etc. It was dismal. Maybe it was the one that we went to? Perhaps they've upped the selection since.

But I'm happy with shopping my local grocery stores. I'm spoiled, we have beautiful clean stores to shop. I get everything I need there.

adamlambert · ‎10-19-2016

as a stockholder, we know that with the small markup of 5-7% they must make $ on membership fees. I also have an executive membership and go once a week for the two of us....fresh salmon and organic milk. Our 2 stores have a ton of organics!!