Costco was very clear with the tariffs that they would eat the cost and just sue because they felt it was illegal. Low and behold, it was illegal, and they are getting a refund after not raising costs like everyone else. And their customers loved them for it.
This is actually their entire buisness model as well. They don’t really make much money from their products. They make almost 100% profit from their memberships. If I remember right, over 2/3 of their total profit comes from membership revenue. So if they piss people off and make them cancel their membership, that would really fuck them over.
Costco was very clear with the tariffs that they would eat the cost and just sue because they felt it was illegal. Low and behold, it was illegal, and they are getting a refund after not raising costs like everyone else. And their customers loved them for it.
This is actually their entire buisness model as well. They don’t really make much money from their products. They make almost 100% profit from their memberships. If I remember right, over 2/3 of their total profit comes from membership revenue. So if they piss people off and make them cancel their membership, that would really fuck them over.
Costco Canada employee here…
Idk if it’s the same in the US, but up here the highest markup on anything is 14% above cost.
I think it is about the same here.