Post by KF

Costco makes almost no profit on the things it sells Costco's profit margin on merchandise is roughly 2%, which is razor-thin compared to most retailers. The real money comes from membership fees. In 2023, Costco collected over $4.5 billion in membership revenue, and that's nearly pure profit. The entire business model is built around keeping prices so low that people gladly pay $65 a year just to shop there.