Re:Costco gained a cult following by breaking every rule of ...
by kgwgk on Sunday October 13, 2019 @05:36PM
(#21243237)
> According to the article, Costco's average mark up is 11%. So they make $99.10 profit on my $1000 of spending.
No, they are selling to you for $1000 something that they bought for $900. But they still have to pay all their operating costs.
Their revenue in FY 2019 was $149.4bn (+ $3.4bn in membership fees) and the cost of merchandise was $132.bn. Their gross margin is 11% but then you have $15bn in "Selling, General and Administrative" expenses.
No, they are selling to you for $1000 something that they bought for $900. But they still have to pay all their operating costs.
Their revenue in FY 2019 was $149.4bn (+ $3.4bn in membership fees) and the cost of merchandise was $132.bn. Their gross margin is 11% but then you have $15bn in "Selling, General and Administrative" expenses.