Is Costo REALLY a wholesaler?

Question

It seems like a scam to me, cause their prices aren't that much cheaper than retail ones!

Answer 1

One thing I make out well on is the frozen fish at Costco... The same frozen tortilla tillapia costs me about $3.50/piece at the regular grocery store, but I can get 7 of the same toritlla tilapia fillets for $9.00. That alone pays for my membership throughout the year. The other thing that you get HUGE savings on, is the alcohol - beer and wine. A 24 pack of Blue Moon costs only $22.00! And, I know the Zantac (for heartburn) is a major cost savings, which my hubby is very happy about. So, I guess the answer is that it really depends on what you are buying. I notice some stuff isn't all that much cheaper. But, there are also a lot of great buys!

Answer 2

Depends upon the product really... they sell in bulk.
I've heard that the mark-up is only 10% to 15%... which is just to cover operating cost for the store.
They make their money on memberships.

So selling in bulk with a relatively low mark-up, that's probably as close you can get to wholesale as possible without a business license.

Their prices are at times comparable to other retail stores, but what I've found is that you get more through costco because things are bundled together.

For example, you get a better warranty on appliances or an extra controller (or an extra game) in their video game bundle. Their return policy is pretty generous too.

Answer 3

Like shopping anywhere you have to know your prices, and shop accordingly. I find some things in costco are very cheap compared to anywhere else, other things not so. The things to really look for are the Kirkland brand products, and any of their weekly sales are normally really good prices. Also look at quality. Again, anything I buy in Kirkland brand is really good quality. Their books are cheaper than you can generally get elsewhere. Sheets are generally really wel priced for the quality you get,(sure, you could buy a set at walmart for 20 bucks, but won't be nearly as nice.)

Answer 4

I heard that the markup at Sam's club barely covers the cost of the store/employees. They make most of their profits from the membership fees. I have never been in a costco, but I guess Sam's club is more geared to selling to small businesses.

Answer 5

It depends on what you are purchasing.
Example:
I buy a whole beef tenderloin (or other larger cuts) trim it and and cut it up to my desired thickness. I am not subject to those thin little steaks at the supermarket.

TP and other paper products are cheaper.

Answer 6

no longer hassle-free. why dont you pass attempt to purchase inventory lots? in bangladesh and india or china,many overruns and cancelled orders, which no person desires to purchase considering its oversize and that they can't in basic terms re sell.