Famous actor Erdem Baş explained Costco's secret: 'There's no concern about making money from the products.'
Famous actor Erdem Baş described Costco, which Turkish people living in the United States frequently share. Baş highlighted how the chain's low-price policy and membership system generate revenue.
The famous actor Erdem Baş explained Costco's business model in a video post from his social media account. In explaining why Costco is preferred, Baş said the company's main source of revenue is not product sales but its membership system.
Baş noted that Costco was founded in the 1970s under the name Price Club, that the company opened its first Costco store in Seattle in 1983, and that today it has more than 900 stores in 14 countries.
A Wide Variety and Cheap
Saying that Costco's most important feature is its low prices, Baş said, 'Once it's cheap. There's a lot of variety and cheap. People prefer it for that reason. It's quite cheap compared to outside.'
However, it is curious how a company selling products at low prices makes money with this model. Baş said that Costco's real strategy comes into play here.
Costco's Main Source of Revenue: Memberships
Baş, who said that Costco does not consider high profit from products as its primary goal, explained the company's revenue model as follows:
“There is no concern about making money from the products it sells.”
According to Baş, Costco's biggest source of revenue is the annual membership fees customers pay to shop in its stores.
Baş said that Costco has about 84 million paid members, and that the figure, including family members, can reach up to 150 million.
Baş noted that the company earns about $5.7 billion a year from memberships, and highlighted that the membership system lies at the core of Costco's business model.
Baş, his video “CostcoHe finished by saying '”'.
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