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I suspect that Sam's et al. require memberships to bypass some law that forbids the selling of bulk items to the general consumer via their use of memberships. It simply seems that the small membership fee required to be a member is not enough to offset savings to the extent that some other store could not sell the same bulk items without requiring a membership. Is this a correct assumption on my part? If so, what information on these laws/restrictions can you give me?

2006-12-21 12:05:40 · 5 answers · asked by Jacob P 2 in Business & Finance Other - Business & Finance

5 answers

Membership fees is just another way of extracting more revenue from consumers.

Always compare prices.. and you get what you pay for.

2006-12-21 19:13:37 · answer #1 · answered by Anonymous · 0 1

Well, sometihng else to consider is since Sam's and Walmart are owned by the same company, there may be some non-compete clauses or restrictions to their business that they get around by requiring the memberships.

2006-12-21 12:17:32 · answer #2 · answered by getting older 2 · 0 1

Wholesale clubs charge for memberships because that is where the bulk of their income comes from. They have a very low markup on products compared to most retail stores.

2006-12-21 12:09:22 · answer #3 · answered by Anonymous · 0 1

They make a lot of money from the membership fees. Also, that gives an aura of exclusivity which is probably psychologically effective with many people.

2006-12-21 13:38:59 · answer #4 · answered by Judy 7 · 0 1

This is where they make the extra big bucks and make you think you are getting a real deal shopping so called wholesale.
I challenge you to check the cost per ounce of their items and then go to WalMart and check the same item and their cost per ounce and see who is the cheapest. Sam's aint no big deal. Shop at WalMart it is cheaper.

2006-12-21 12:19:10 · answer #5 · answered by Teesip 2 · 0 1

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