3 Compelling Costco Growth Drivers You Might Not Know About

Costco Wholesale (NASDAQ: COST) has a dependable business model that offers high value for members in exchange for an annual fee. It tends to be inflation-resistant, since it offers rock-bottom prices on products, generating even higher volume and sales as prices begin to rise. In fact, while most companies tout wide gross margins, Costco aims for razor-thin margins. The lower the price, the greater the chance of boosting loyalty and volume, while the company benefits from membership fees that go straight to the bottom line.Low prices are always in demand, but Costco has three new growth drivers you may not know about that are adding momentum.Executive members have long been a growth driver for Costco. This membership costs double the standard membership of $65 in the U.S., and members get perks like cashback and special shopping hours. Executive membership grows every quarter, adding new revenue to the total.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool