Making It with Jon Davids 201 - How Costco Sells $254B of Stuff with this WEIRD Strategy
Jul 15, 2025
Discover the secrets behind Costco's staggering $254 billion success! Explore their innovative membership model and limited product selection that drive bulk purchasing. Learn impactful strategies to boost cash flow and customer loyalty, including upfront payments and pre-orders. Delve into Costco's unique warehouse-style approach and the importance of embracing individuality in business. This mix of marketing genius and unconventional retail tactics offers valuable insights for anyone looking to elevate their own business.
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Costco Membership Brilliance
- Costco's membership model is one of the most brilliant business moves, earning $4.9 billion pure profit in 2024.
- It creates a large upfront cash flow cushion and successful recurring revenue from 132 million members.
Limited Selection Boosts Sales
- Costco offers very limited product selection, usually only one to two items per category.
- This scarcity prevents choice paralysis and encourages customers to buy more of the few options.
Kirkland Brand's Zero CAC
- Costco's Kirkland brand earned $67 billion in 2024 without spending a single dollar on advertising.
- This zero customer acquisition cost brand is a massive revenue engine for Costco.