Re:Sears has another chance to avoid closing down
by jboy55 on Tuesday January 08, 2019 @01:32PM
(#18858052)
Costco loves the concept of price anchoring. That's why the diamond rings and tvs are right near the front, and their liquor isle has $1,000 bottles.
The concept is that when you decide against buying the $1,000 thing, the $50 thing seems a good comprise. If all you had were $10 things, the $50 thing would seem to be 'too much'.
Re:Sears has another chance to avoid closing down
by xnyan on Tuesday January 08, 2019 @01:01PM
(#18857726)
Costco makes ~75% of their profit from memberships, gas is like their iconic $5 rotisserie chicken - sell it at cost or a small loss as a incentive to buy and maintain membership. Gas prices are posted outside so it's a particularity public ad for costco membership and as such they have a strong incentive to push the price as low as feasible.
Also, for new parents: you can easily save the cost of the membership on diapers and wipes for the year or so your child wears them.
They always have a car parked in front or by the customer service center to advertise their auto purchase program. It has almost always been a Lexus, but for the past few months the one near me is a Maserati. I think this may be their signal on who their ideal customer is. Yet my parents used it to buy a Subaru and it was a good deal.