Costco earns its margins before you even whip out your credit card at the checkout counter.
How?
They get paid upfront, selling you an annual “membership” that allows you to shop at Costco. That membership is all margin for Costco. This is how they can afford to sell most of their goods at or just above cost, yet still earn steady, reliable profits. What a concept!
We’re gonna steal that concept by getting paid upfront.
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