Here's What Costco Is Doing for Black Friday
While Costco (NASDAQ: COST) offers low prices to its members year round, it ramps things up for the holiday season. For 2017, the company kicked things off early by starting its sales on Nov. 1. That's only the beginning, however, as the membership-based warehouse club has released a Holiday Savings Book that details its offers through the season.
The retailer operates in a different fashion than most of its rivals. It does not make most of its profit from marking up what it sells. Instead, it makes its money from selling memberships. That means Costco doesn't live or die based on what it sells. Its success comes from enticing new members to join and old ones to renew.
The holiday season gives the warehouse club a unique opportunity to strengthen its hold on new and existing members alike. If, for example, a member visits Costco only once or twice a year, if he or she has a good experience, and feels that money was saved, then a renewal is likely. That means a single successful holiday season could be enough to convince a member that the price of a membership is worth it, even if that person rarely visits.
Source: Fool.com
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