I’d heard an uncited, completely unsubstantiated factoid:
Each and every Costco location clears $150 mil in profit each year.
Man that CAN’T be right. I mean, how can you sell 12 packs of Mac n cheese at the price they do and make a profit.
I can’t believe that I am linking to a Wiki cite, but it would seem to bear you out.
A 14-15% profit margin, and total store sales of $51 billion in 2005…
Forgot to add- just goes to show you how much things REALLY cost…
Okay, this makes more sense (and it’s from the Wall Street Journal !)-
Looks like the $100 + million per store is sales, rather than profit. It’s still pretty damned impressive, though.
$1 billion profit for fiscal 2005 is nothing to sneeze at…
The average income of a Costco member is $60.000/year. It might be more, that was over a year ago. They have good prices for one step down from the best of brands, or the top of the line in some things, and very limited inventory, considering their volume of business. The low inventory comes from selling only one brand of each thing. Their nationwide inventory is a miniscule fraction of most retail sales businesses of their size. Ever notice that if they run out of something, they are truly out of it? Probably won’t have it again until next year.
If I was not a single household, I would buy a lot more there. But I do buy the toilet paper, each year when it goes on coupon. I buy everything that is consumable, and does not spoil. They also have the best photo printing anywhere. I got my new TV there, and my computer. I should have bought my camera there.
It’s only a good deal if your savings on a years purchase is more than the cost of the membership. (And mine is by a couple of hundred dollars.)
Tris
This weekend, I took back a DVD box set that had been opened. One disc was scratched. I couldn’t find the receipt, and they didn’t have the same one in stock. Cash, no hesitation. Impressive.
It also occurs to me that their loss to theft is probably pretty small. Requiring membership is a double-deterrent: It keeps away professional thieves (who aren’t going to pay money and hand over ID), and is a deterrent to opportunistic thieves who know that their identity is already on file. You also won’t have people just ‘hanging out,’ like at Target or Walmart. And how do you stuff Costco-sized multi-packs down your pants, anyway?
I get that back on gas alone. Any electronic purchase and it’s more than worth it…
I love the fact that Costco now sells their flats of boneless, skinless chicken breasts in individually wrapped, two-breast packages (about 16 breasts per flat, IIRC). Saves me a fortune on freezer bags when I stuff 'em in the freezer, to use as needed. Lots of single folks I know do the same, as well as with steaks and roasts.
I will also only buy hardcover books at Costco. I refuse to pay the going retail price.
Damn it! I checked the store locator and there isn’t one for at least 50 miles. Grr. We do have BJs.
We drive an hour to go to Costco. Granted, we live in tiny little Cumberland, MD, and there is nothing here. If we had another big discount store nearby, we’d probably use that one instead. But no matter which one we choose, it’s at least an hour. We usually go about once a month, and stock up on non-perishables and meats, to make up for the fact that it’s so far away.
I did the same thing as the OP, only my TV was 4 years old. We figured it was a long shot, but we packed it into the car (no receipt, no manual, just the TV and remote) and thought it couldn’t hurt to ask. If they said no, we could probably at least get them to dispose of it for us, and we’d be there all ready to buy a new TV
They took it back, no questions asked, and gave us cash! We got a brand new TV for only $60 over the refund.
I was really surprised, and I kind of felt like we were getting away with something we shouldn’t. But we told them the whole story, all true, and asked nicely, with sort of a “I’m pretty sure you can’t do this, but…” tone, and they gave us our money back.
I’m still shocked, but boy do they have my business forever.
John Stossel did a report on Costco in which he ripped them. He made any number of accusations including the charge that shopping there makes you fat because the prices are low enough to make you buy more food. The thing that really got to me about it was that the story aired only four days after another report of his aired, but this one was a love letter to Wal-Mart. He hailed the company for keeping its prices low and did his “give me a break” thing to people who complain about Wal-Mart’s wages. He failed to mention that many prioces at Wal-Mart are kind of high and it’s primarily the bottom-of-the-line stuff that is super low-priced as a way to lure people into the store.
Anyway, I love Costco. And I’m not fat.
These ‘merchandise return’ stories are a revelation to me. I’ve always thought that Costco had a 30 day, no questions, return policy and after that you had to seek redress from the manufacturer. Have they revised their return policy, or am I just to squemish about pushing the issue?
Man, I really, really wish we had a Costco. Sam’s Club is just not at all the same. The nearest Costco is in Charlotte, I think.
As far as I know, it’s been in place for years. In that time, my Dad has returned 3 or 4 things in the several hundred dollar range, as well as some much lesser priced items with no problem at all. I found it hard to believe that returning things could be so effortless until last week when I watched him return a telescope that he was having buyer’s remorse over. (OK, after keeping and using it for a month, he decided the quality wasn’t there for the price he paid but the buyer’s remorse was there first.) In two or three minutes he had cash in hand and an employee was cheerfully wheeling the telescope away in a cart.
No, need to be squeamish about it, **A.R. Cane. ** I can’t imagine what it would take to make them hesitate for a second in giving a refund for anything. Maybe a habitual returner who always has to berate everyone in sight for horrible service and always complains loudly about incredibly minor or nonexistant problems might start to find it harder? There must be those kind of people even at Costco.
Another thing I like about Costco is that the exit checkers have been known to save us money by noticing when something has accidentally been rung in twice at the register. We may never have noticed it ourselves but they do. A quick visit with a nearby supervisor and we’re out the door with our cash in hand. Try* that* at Wal-Mart or BJ’s!
For those of you who wish that you had a Costco nearby, there just may be one in the works for your area. I happen to know that there will be six brand-new stores in state of Hawaii in the near future because my sister has put in for a transfer there. If they’re giving a bunch of remote islands 
that many, imagine what they must have in store for the mainland! And other countries too!
The only problem I have with Costco is the fact that there’s always fifty million people there, and because they’re not open 24 hours a day like Wal-Mart, you have to go when there’s a ton of people there.
I’ve always always ALWAYS loved Costco. It’s worth my $45 annual re-up for the coffee beans alone. We get a big 5 lb bag of coffee beans (GOOD beans, too, not crap - and we go through a LOT of coffee at my house) for $10. Totally worth it.
~Tasha
I’m going to look for those next time I’m there. The thing that’s deterred me from buying meat there in the past is having to repackage it.
Their frozen salmon filets are quite good. Trimmed very nicely (I hate the gray fatty layer that most places leave on), individually vacu-sealed.
Last time UncleBeer and I were there, we bought like 10 lbs of cheese. He took half home, I kept half. Buy the Cotswold.
I <3 CostCo.
Guess I’m lucky to be over here in Charleston, the better side of SC! 