Where is this commitment? I am not able to find it and I am reasonably certain that Costco has a much larger margin than 12% on many of their products.
If anything, that sounds like an average, which doesn't tell you anything as they could be screwing you on mattresses while losing money on hot dogs and rotisserie chickens to even it out to a 12% gross margin.
Re:The Warby Parker clones are imploding
by alasdair_ on Tuesday March 10, 2020 @12:49PM
(#22537066)
It’s mentioned quite often in their financial filings but I don’t have an example handy and I don’t feel like digging through a 10K right now. However, here is an Esquire article that mentions it:
“Costco has stated that the highest margin they will take on a non-Costco brand is 13 percent and they strive to keep it closer to 10 percent.”
https://www.esquire.com/food-drink/drinks/a35749/costco-the-...
Re:The Warby Parker clones are imploding
by blaser-waffle on Tuesday March 10, 2020 @10:25AM
(#22535692)
I'm with the other comments: where do they say they cap at 12%? Costco brings a lot of value to the consumer, IMO, but I feel like that's deliberately shooting themselves in the foot.
And why the arbitrary 12%? Why not 15 or 21?
Costco explicitly commits to never making more than 12% on anything they sell. It’s a major part of their brand and part of the reason people trust them.