While there are a ton of Costco secrets the megastore tries its best to keep hidden, there are also some false assumptions that you can easily debunk if you do a little digging. Here's a real rundown of Costco folklore that people consistently mistake for the truth.
Just because those $4.99 roasted birds are popular doesn't mean they're a profit turner. Costco sold a whopping 76 million rotisserie chickens in 2014, but didn't exactly see dollar signs from their golden-hued poultry. In 2015, Costco CFO Richard Galanti told the Seattle Times:
"When others were raising their chicken prices from $4.99 to $5.99, we were willing to eat... $30 to $40 million a year in gross margin by keeping it at $4.99."
They could easily make a lot more money if they raised the prices, but there are no plans to do that any time soon. There are plans to start sourcing their own birds, though. Costco is building its own hatchery, feed mill, and processing plant in Nebraska. Consumers are going to have a real farm-to-Costco experience. The goal is for the plant to crank out two million chickens per week. With an ability to supply its own $5 chickens, Costco will no doubt slowly reverse the trend of losing dollars on one of its biggest sellers.
Watch the video to learn more false Costco facts you always thought were true!
Their chickens make big money | #
They offer day passes for non-members | #
Items are always returnable | #
Non-members get deals online | #
Non-members can buy glasses | #
Cashiers don't need your help | #
They deliver and install large appliances | #
The cheapest cleaning supplies | #
Their toilet paper is the best | #
Receipt checking is to prevent theft | #
The food court is members only | #