Costco has become a household name, synonymous with bulk buying and unbeatable prices. As a membership-based warehouse club, it has carved out a unique niche in the retail landscape, attracting millions of loyal customers who appreciate its value proposition. Understanding how Costco’s pricing strategy differs from traditional retailers is crucial for consumers and business analysts…

Costco Wholesale Corporation stands as a titan in the retail industry, known for its distinctive business model that prioritizes value and efficiency. With a membership-based warehouse format, Costco has carved out a unique niche, attracting millions of loyal customers who appreciate its competitive pricing. Understanding how Costco achieves these low prices requires a closer look…

1. Understanding High-Low Pricing Strategy. To fully appreciate the benefits of Costco’s high-low pricing strategy, it’s essential to understand what this pricing model entails and how it differs from other strategies commonly used in retail. Definition of High-Low Pricing. High-low pricing is a retail strategy where products are initially offered at a higher price, followed…