2006-08-03 13:31:25 · 4 answers · asked by ven 1 in Business & Finance ➔ Corporations
The goal is not to maximize customer base, it is to maximize economic profits. The strategy is called two-part tariff pricing. Look at an intermediate level microecon textbook to learn why it maximize "producer surplus".
2006-08-03 13:47:08 · answer #1 · answered by Homer J. Simpson 6 · 1⤊ 0⤋
It's a scam. I called corporate and the woman I talked to said they are a private warehouse,therefore they can charge a fee. Aren't ALL grocery stores private? They dont charge a fee. It's a scam and people are blind to it. Costco even has lower over head than regular grocery stores because it nuthin fancy, They buy large quantities of items in larger sizes for cheaper prices and stack it onto a warehouse shelf. The fee is now $55 and they have an estimated 46 million members. Do the math!
2015-04-06 11:48:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I would say that these companies operate like this so that they can control the customer!
Sams Club and Costco think that they are doing the customer a favor when in reality it is a business mind game that they are playing with the customer!
2006-08-03 13:48:26 · answer #3 · answered by zoril 7 · 0⤊ 0⤋
membership fee allows for selling products at low price but only in bulk so membership is limited to people who tend to buy in bulk
2006-08-03 16:19:27 · answer #4 · answered by dt 5 · 0⤊ 0⤋