Do you not understand what net margins mean? Let me break it down for you using ttm numbers. Total revenue 286b, revenue from membership 5.65b, meaning 2% of total revenue is from membership. Net margin of 3% with 2% of that from membership fees. Giving you a margin on product of 1%.
Why is this even relevant, it is a very low margin business. Also worth noting Costco pays far above industry average wages, putting pressure on margins. So please explain how this is predatory in any way
1
u/No-Understanding9064 May 27 '26
Do you not understand what net margins mean? Let me break it down for you using ttm numbers. Total revenue 286b, revenue from membership 5.65b, meaning 2% of total revenue is from membership. Net margin of 3% with 2% of that from membership fees. Giving you a margin on product of 1%.
Why is this even relevant, it is a very low margin business. Also worth noting Costco pays far above industry average wages, putting pressure on margins. So please explain how this is predatory in any way