The Economics of Owning a Costco

Costco makes 65% of its profit from something that has nothing to do with selling you anything. In this video, we break down the full economics of owning a Costco — why the world's third-largest retailer deliberately caps its own margins at 15%, how a $1.50 hot dog that hasn't changed price since 1985 is actually one of the smartest financial decisions in retail history, what Kirkland Signature really is (hint: it outsells Coca-Cola), and why the Shanghai Costco that shut down on its first day became one of the most profitable locations on Earth. Whether you're an investor, an entrepreneur, or someone who's ever left Costco with a kayak you didn't plan to buy — this is the video that explains the machine behind it.