Maybe you always knew this, but I didn't. Probably because I don't subscribe to a lot of things or buy in bulk. Costco makes its money from memberships fees, not from selling merchandise. It's like going to the movies (sort of). We spent about $8.15 on the early show last week, and the popcorn was $11 for a small bag (we said no to that). Or joining a health food co-op. You pay a membership fee and get food for less, but the owners may be making the money from your membership. Or maybe gift cards? Many people never use them, but the company has the cash. I'll have to think about it. They make their profit just by letting you in the door.
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