Costco isn’t just famous for bargain-priced bulk goods. it’s also holding its own in the fuel market. By requiring a membership to fill up at its stations, the retail giant keeps fuel prices low.
Many Costco Goldstar members have gone so far as to argue that Costco’s membership is worth it for the fuel alone. But, is that true?
While many people scratch their heads at how Costco can even break even, this setup doesn’t just help budget-conscious drivers; it also ensures Costco enjoys a reliable cash flow from memberships, which make up a whopping 75% of its profits. In other words, while customers save at the pump, Costco fuels its business with those annual fees.
That said, Costco does include a disclaimer stating that while they update prices regularly, what you see in the app might not always match what’s at the pump. Before making a trip just for fuel, it’s a good idea to check apps like the Costco app or GasBuddy to see if the savings justify the detour—especially if a Costco station isn’t nearby.
full story Costco's successful business model - that's why their gas is so cheap
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