Costco is Awesome
By Alisa Chen
April 2025
I’m your typical middle-class consumer. Costco is my inspiration. Whenever I go to Costco, my stomach becomes 10% full from samples, 70% full from the $1.50 hot dog, and 20% full from my fountain drink of choice. My wallet, on the other hand, goes from 2% full to 0% full. As problematic as this seems, I don’t feel robbed. Why’s that?
This shouldn’t even be a question. Costco caps its product margins at ~15%, compared to the average 25% to 50% markup in supermarkets and other retailers. When I enter Costco, I know I’m getting a bang for my buck. Besides, anyone would know that buying in bulk results in lower prices. That’s how retail always works.
My friend Bob familiarised me with Costco when I was two years old. I’m thankful for him, because I never see paid advertisements anywhere; Costco relies solely on word of mouth marketing. My rationale upon his introduction went something like this:
I love my friend Bob, Bob loves Costco, so I’ll love Costco too.
I’ve gotten myself a membership card. I am special. I have to utilise these paid privileges as much as I can.
I really do love shopping here! I’ll come here more often and I’ll pull my friends in too!
What this very common consumer mindset induces is insane customer loyalty, profit from memberships, and terrific sales.
Now, onto the Costco experience.
I walk into Costco, my shiny membership in hand. A smiling employee escorts me into the club. It’s time to splurge!
I’m lost as I walk, but only slightly. Costco’s stock changes position on a nightly basis, creating a scavenger hunt-like experience for customers. I swear the dried mango used to be stored closer to the pharmacy. Oh well, might as well pick up a free apricot sample during my hunt. Mmmmmmm, I feel blessed, this is delicious. I would have never willingly tried apricots without this sample. I’m adding them to my cart. Now, back to looking for dried mangos…
Oh! And how can I leave Costco without a rotisserie chicken? These are Costco’s most famous lost leaders. They sell at right about production cost, with no profit margin. My now 1% full wallet is very attracted to such a celebrity. I weave through the clothing aisle, the bakery, the frozen pizzas, and the ENTIRE store until I arrive at the back. There, I push through a small crowd and snag a fresh, juicy rotisserie chicken. Did I forget to mention that while I hiked, I filled a second cart with random goods?
I am delighted by my consumerist spending habits. I feel accomplished because of my scavenging abilities. Half of my purchases were on discount too! :D