The CEO of COSTCO revealed which item sold at his chain is the most important, and his answer may shock fans.
Ron Vachris said a product they sell is the most valuable to the retailer.
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Costco is often known for its famous roast chicken or cheaper gas that has attracted many customers.
The CEO revealed that his wholesaler’s most valuable product is not food, but rather its membership.
Only members are allowed to enter and purchase goods from the supplier in bulk.
This means shoppers must sign up for an annual membership and show their cards to enter.
Costco offered its customers a $60 Gold Star membership and a $120 Executive membership.
The wholesaler is known for its good deals on chicken, gas and even cheap hot dogs in food courts, which have attracted a lot of people.
Vachris, however, explained why membership itself has been more important, according to an interview with Fortune.
“The most important item we sell is the membership card,” he said.
“Everything we do supports that transaction.”
Joining Costco has given customers the feeling that its stores are good value for money.
This may be due to the feeling that consumers were getting back the $60 or $120 annual fee they paid, according to Fortune.
The inclusion of high-value items like diamonds and electronics at a discount in Costco stores increases the mentality of saving money.
Even the $120 Costco membership card offered some cash back to customers.
Members can get a 2% annual reward of up to $1,000.
Costco Membership Sharing Guidelines
Costco has strict rules for subscription usage that shoppers must follow and has been cracking down on violators in recent years.
- Core Member Usage: Only the primary cardholder can use this Costco membership card. It is not allowed to share it for purchases, as the photo on the card must correspond to the person using it.
- Domestic Card: Each Prime Member can add one free Household Cardholder who lives at the same address. That person will receive their own membership card and can shop at Costco independently.
- Guest Policy: Members can bring up to two guests per Costco visit. However, only the member can make purchases. Guests must be accompanied by a member.
- Authorized cardholder: For an additional fee, you can add an authorized cardholder, such as a family member or friend, who does not reside at your address. They will receive their own card and will be able to make purchases independently.
Credit: Costco
That money, in turn, can be used on eligible purchases through Costco.
SPECIAL POLICIES
Costco is known for the exclusive benefits it offers its members.
One of them is its particularly unique return policy.
While most stores have a return limit of a few weeks or a month, Costco’s policy is much more generous.
With a few exceptions such as electronics, most items can be returned at any time after purchase if the customer is not satisfied with their purchase.
This has led to some especially strange stories, The US Sun previously reported.
One person revealed that the store removed a chair they had purchased 15 years ago.
This story originally appeared on The-sun.com read the full story
