Ask for the Cash: Convince Your Customers to Pay You in Advance
Growth Institute
MAY 18, 2022
In fact, in most years the membership fees Costco collects cover about two-thirds of their operating profit. By collecting the funds in advance to cover most of their operating costs, and by turning their inventory faster than they pay their suppliers, Costco can run the business on gross profit margins much lower than its competitors can.
Let's personalize your content