How Costco Makes Money Selling Cheap

The Costco hot dog and soda has cost $1.50 since 1985. So how does a company that refuses to raise prices bring in about $297 billion in sales and more than $9 billion in profit a year? In this video we break down the Costco business model: membership fees, the reported 14-15% markup cap, fewer than 4,000 items per warehouse, Kirkland Signature, the $1.50 hot dog, the $4.99 rotisserie chicken, the treasure hunt, gas and the co-branded card, employee pay, the 2024 fee increase, and the risks. CHAPTERS: 0:00 Cold Open 1:05 The Number That Explains Costco 2:47 The Man Who Invented the Warehouse Club 4:27 The 14 Percent Rule 5:53 Less Than 4,000 Items 7:16 The Kirkland Secret 9:00 The $1.50 Hot Dog 10:19 The Rotisserie Chicken 11:45 The Treasure Hunt 13:11 Gas, Glasses, and a Credit Card 14:44 Paying People More 16:13 Protecting the Card 18:10 What Could Go Wrong 19:30 The Wrap-Up Numbers are approximate and based on public company filings and major news reports at the time of production. Figures marked "reported" or "estimated" come from third-party reporting. This video uses an AI-generated voice for narration. Dime Owl is not affiliated with, sponsored by, or endorsed by Costco or any company mentioned. Stock footage and music: Magnific This video is for educational purposes only and is not financial advice. New videos every Monday, Wednesday and Friday. Subscribe to Dime Owl! #Costco #BusinessModel #HowTheyMakeMoney #BusinessExplained #DimeOwl