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In reply to the discussion: Costco's CEO explains how they make record profits: [View all]Customers of Costco pay an annual fee to be a member. The money Costco makes off the sale of merchandise goes towards Cost of Goods Sold, paying operating expenses, paying their employees, dividends, etc... It all gets plowed back into the operation. However, the money they make from the annual fee goes towards acquiring the building and property. I call that a land acquisition company.
It's the same basic business model Ray Kroc instituted with McDonald's. What would you rather have: A hamburger joint or land. I'd rather have land. If I can use selling hamburgers as a means to that end, good for me.
Here's another one: GE is a leasing company. I'll let you enjoy learning why that is in your own research.
Good Day!
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It's really simple: Don't be greedy, and pay your people what they're worth.
CaliforniaPeggy
Jan 2014
#1
Always a good atmosphere in COSTCO, customers from all over the world, employees glad to be there.
freshwest
Jan 2014
#3
The problem with that is most of these CEOs think their workers are overpaid useless scum.
Spitfire of ATJ
Jan 2014
#29
They are simply lines on a balance ledger. Nothing more nothing less. Just another cost of
Ed Suspicious
Jan 2014
#38
This lad spends about $4,000 each year at Costco and a big fat zero at Walmart during the past seven
indepat
Jan 2014
#7
That is cool and noble, but Costco's target market is still the top 20% of households.
Sen. Walter Sobchak
Jan 2014
#51
Well then, why doesn't Costco have a big neon sign that says "We Accept EBT"
Sen. Walter Sobchak
Jan 2014
#62
You've got it backward, they attracted the top 20% market by meeting the demand
Egalitarian Thug
Jan 2014
#67
So most expanding companies are a land-acquisition company by your odd definition. n/t
pnwmom
Jan 2014
#43
Not sure how true it is but I heard Walmart has gone largely to a consignment system that....
yourout
Jan 2014
#30
That may be true, but treating employees decently should be a basic in all models
Armstead
Jan 2014
#33
I just believe that fair treatment of workers should be a basic part of any business equation
Armstead
Jan 2014
#47
A few years back I didn't like shopping at Costco because of the check out area
XRubicon
Jan 2014
#49