costco’s business model is to sell everything at cost and only profit from subscriptions. hence the name.
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Warl0k3@lemmy.world 4 days agoSorry, you’re correct - I should have said they do not make a loss on the sales, (turn a profit is obviously a bit of a stretch) since they use their existing infrastructure to offset the operational expenses.
Num10ck@lemmy.world 2 days ago
Warl0k3@lemmy.world 2 days ago
Yes, hence why I had to correct.myswlf
Kolanaki@yiffit.net 4 days ago
Yeah, and that’s exactly what a “loss leader” is defined by. They make no profit off the hotdog combo itself but the hotdog combo may be enough of an incentive for someone to come to Coscto in the first place and end up buying more shit that does make a profit.