The Economist has always been positive about Costco.
They, every year or two, have an article about what a well-run company it is and how well they treat their employees, especially compared to a prime Costco competitor - Walmart.
Economist points out with atypical British glee that Costco runs financial rings around Sam's Big Sweat Shop: they pay their people; they have medical benefits; they have retirement; but in all the financial measurements, they beat the pants off Walmart.
I guess that's why I keep seeing the same employees at Store One over the years.
But then, I am a Costco devotee.
Most of what I buy that I would otherwise buy in a grocery I buy at Costco.
So, I was really interested in the most recent Economist article about the company.
Net, net it said that most of Costco's profit is derived from annual membership fees.
I have read articles over the years excoriating Costco for that fact.
"You're supposed to extract your profit from the price of the stuff you sell, not some 'loyalty fee' so say the gurus of business economics, not the value you provide your customers.
Back to the Economist article that I am referencing; they said that the reason for Costco's continued growth, success and better-than-Walmart numbers is value.
Costco's customers renew their membership every year because they consistently get best products at best prices and check out with best employees of a best company,
I have not bought Best Foods mayonnaise at my local grocer recently because their price is $9.75 for a quart.
Yesterday I bought a two quart jar of Best Foods mayonnaise at Costco for $6.99.
I shop at Costco at least four times a month.
My membership fee has just been increased to $130.
That's $2.70 a store visit.
Even if I add that $2.70 pro rata store visit surcharge to the $6.99 Best Foods Mayonnaise, I come out $.06 ahead on double the mayonnaise
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