Why is Costco so much cheaper?
Costco employs specific business strategies to undercut competitors’ prices and ensure customer loyalty. Membership fees make up a majority of Costco’s profits, allowing the chain to offer better deals on products, even when that means slimmer profit margins on sales. Among the many reasons Costco has won such loyalty is a generous policy. As it turns out, it applies to nearly everything — including produce. Broadly, Costco offers its members what it terms a risk-free 100% satisfaction guarantee on every product it sells, with limited, defined exceptions.