Costco makes $4.6 billion a year from membership fees, which lets it charge rock-bottom prices with only 11% markup instead of the usual 25-50%. The stores use treasure hunt psychology: no aisle signs, rotating products, and just 3,700 items versus 50,000 in a normal supermarket, so you keep hunting and buying.
Did you know Costco is hiding their stuff from you on purpose? Well, here's why. Walk into your local Costco and you'll know exactly what I mean.
Welcome to Costco.
I love you. There are no aisle signs, no store maps, and the place is gigantic. They're intentionally sending you on a treasure hunt. It's literally called treasure hunt retail psychology. It means they're constantly moving their stuff around the store and adding new products you've never seen before, so you have to explore just to get what's on your shopping list. Fortunately, in the process, for Costco, you find and buy items that you never knew you needed. So when you leave the store hours later, you filled two carts full with hidden treasures. But that's not the only reason they're successful. You have to be a member to get into the store, and they make $4.6 billion a year on membership fees alone. In exchange, you get dirt-cheap prices. And your average retail store marks up products 25 to 50%. Costco, only an 11% markup. And they focus solely on the best-selling items. They only sell 3,700 products compared to the 50,000 you find in a typical supermarket.
So Costco, what do you kids say these days? Boom!
