How can Costco make profit selling everything so cheap? Is it just from the membership dues?

Question

How can Costco make profit selling everything so cheap? Is it just from the membership dues?

Answer 1

We at costco don't go over a 14% IMU, often times much lower.

We don't make 100% of the profit from Membership dues, but a majority of it is.  Sorry I do not have exact numbers.

Answer 2

Costco have their own producers for many brands.  They are beginning to look like another walmart

Answer 3

No, they order special pack sizes from the vendors at reduced prices. I have worked on supplying the account

Answer 4

Costco sells everything at 12% margin.  That covers all their costs.

100% of their profits comes from membership fees.