Costco Members Must Remember This Key Rule (or Face the Consequences)

Costco  (COST) – Get Free Report has a very simple business model. It sells memberships in exchange for offering members a low-cost, no-frills shopping experience.

People pay in order to access the chain’s warehouses. Those membership fees provide a significant portion of the chain’s profits, allowing Costco to sell its limited selection of merchandise at a lower markup than its rivals.

Membership, however, is the key piece of the puzzle. The warehouse club works hard to offer its members excellent value so that they continue their membership year after year. That’s something that Costco has been very effective at.