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The entire big box economy is a big honking subsidy to people with cars living in the suburbs by the poor, the singles, the seniors, the urban, the cyclists.
It only works because of the highways and the parking lots and the infrastructure paid for by everyone (road taxes do not cover the cost of the roads) and enjoyed by the drivers. The companies charge twice as much for small packages as big ones because they can; the purchasers without cars and access to the big boxes, the ability to drive between the Walmart and the Costco and the Price Club, don't have a choice.
Read on for Treehugger's reasons. Is bulk buying bad after all?
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Does Buying in Bulk Save Money, or is it a False Economy?
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The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
TAPPING? You POLITICIANS! Don't you realize that the END of the "Wash
Cycle" is a TREASURED MOMENT for most people?!
(Score: 1) by insanumingenium on Monday September 25 2017, @11:21PM (8 children)
I dont know where you hail from. But in my state it is the law that they cant require a membership to buy drugs, glasses, smoke, or hooch. You might not require a membership.
(Score: 2) by Snotnose on Monday September 25 2017, @11:25PM (7 children)
Yeah, I'm pretty sure that's the law here too. I just feel guilty taking taking advantage of their price when not a member.
And yeah, I know that kind of thinking went out in the 80s when MBA's started invading management. But I was raised that way.
When the dust settled America realized it was saved by a porn star.
(Score: 4, Insightful) by Snow on Monday September 25 2017, @11:43PM (2 children)
Don't feel guilty about taking advantage of Costco! That's the most ridiculous thing I have heard! Taking advantage of Costco should warm the cockles of your heart.
(Score: 3, Interesting) by Anonymous Coward on Tuesday September 26 2017, @01:21AM (1 child)
I just use the gift card trick for those bulk stores. If someone gets you a gift card, they will let you into the store. You can get whatever you want and pay the remainder of your bill in cash, card, etc. The secret is to make sure one of your items is a gift card....
(Score: 2) by Snow on Wednesday September 27 2017, @02:32AM
Ooh, that's pretty clever!
(Score: 2, Informative) by insanumingenium on Tuesday September 26 2017, @03:59PM (3 children)
This isn't a little fraternal organization organizing a group buy by fronting the value of the whole order to the wholesaler and trusting that their members will reimburse them. Though even in this especially sympathetic case, I have never seen a group buy turn down more buying power.
This is one of the largest retailers in the world running their day to day retail business. It isn't like the membership fees have anything to do with how this business is offering goods at these prices, their shoppers tend to spend way more than their membership fees every single trip. If anything by adding to their bulk buying power you are enriching their membership.
As the article points out, one of the real effects of those membership fees is to limit access to life improving goods. Saving money on prescriptions could be the difference between eating cat food and Kraft dinner that month. Even if I saw an ethical dilemma, in that position, I think my choice is obvious.
(Score: 1) by khallow on Wednesday September 27 2017, @02:31AM (2 children)
Even the gift card trick works moderately to the business's advantage (which is yet another reason not to treat it as an ethical dilemma). They don't get the $50 or so per year, but they do get a repeat customer which what they wanted all along.
(Score: 1) by j-beda on Wednesday September 27 2017, @06:25PM (1 child)
Costco's membership fees do seem to be a significant source of their profits:
http://www.investopedia.com/articles/investing/071015/3-reasons-costco-has-membership-fees.asp [investopedia.com]
"....
In the volatile world that is the grocery business, Costco has a way to ensure a steady source of income: membership fees. In 2016 alone, the company's 86.7 million members worldwide brought in $2.6 billion in membership fees.
Revenues from membership fees are great. Aside from a few minutes of an employee’s time, plus the cost of the card and subsequent promotional mailings, managing membership isn't too costly. As such, Costco’s $2.6 billion in membership fee revenue is almost entirely profit.
When you consider that in 2016, Costco’s operating income was only $3.6 billion, you can see why the company needs membership fees to stay in business. Thankfully, its membership numbers keep growing: they were up 8% in 2014, 6% in 2015 and 9% in 2016. "
(Score: 1) by khallow on Wednesday September 27 2017, @07:54PM