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Why Costco wholesale is a good corporation for your school project

business situational leadership
(© Maksym Povozniuk –

Did your professor hand you a school student project for your business class? Looking for help with your business project ideas? Don’t worry; we are here to help. Business projects usually involve exploring different business associations, their budgets, their structure, their marketing strategies, and then building a business plan while taking inspiration from them.

Most of the students in your class are going to choose popular companies all around the world as an example and will try to present an idea based on them. Why not be unique and select Costco business model for your business class project while taking help from costco college essay? Sounds interesting, right? Let’s get started!

Costco Wholesale

Costco is a global wholesale brand with 663 locations all around the world. In the 40 years that Costco has been around, it has virtually changed the way we do our grocery shopping. It revenue keeps increasing with each passing year. Let’s see how does Costco work & how they have grown while keeping the profit margins low throughout these years.

1. Subscription Business Model

If you want to shop at the store, you have to get a membership to do so. You have to pay almost 55$ to get an annual membership. This low subscription fee opens up a whole new world of lower-priced commodities for you, so it is well worth it. You can read free essays papers, essay samples and research paper examples on subscription models and how it is better for the business in the long run.

What is it that makes Costco business model stand out from the rest and so successful? You must be wondering: there are other subscription business models such as gyms, newspapers, etc. So what makes Costco Pricing strategy of subscription different? Well, Costco is not offering you a subscription for buying goods, it’s a subscription for a service.

You can buy goods in bulk quantities and sell them to consumers while applying the economies of scale to keep your profits coming.

2. Low Prices

The prices of commodities at Costco are consistently lower than other grocery stores. Costco pricing strategy has always been about keeping the profit margins more moderate than its competitors Walmart or Target to ensure that the consumers get lower-priced commodities. According to Costco pricing strategy, Costco has its own brand the Kirkland Signature that helps it keep the profit margins up since there are no middlemen involved.

Even if the profits from famous brands available at Costco might be low for the company, the ratio is maintained via its Signature brand. Ingenious, right? Sell this idea to your professor, and you will definitely get an A!

3. Advertising Strategy

Thinking how does Costco work as far as the advertising strategy is concerned? Most of the businesses run on a loss-leader business strategy. Grocery stores offer discounts and coupons with the end goal that these discounts will bring in more customers who will end up buying other products which will, in turn, profit the owner.

However, this is not how Costco operates. Costco business strategy depends on word of mouth advertising strategy. It maintains the same prices on discounted items all through the year. It makes sure that it offers low cost on home-made items, such as farm-to-table chicken to ensure that it doesn’t lose a lot of profit while keeping the rates low for the consumers.

4. Employee Wages

We all know that Costco pays it, employees, well. Averagely, a Costco worker gets $21/hour, health benefits, 401(k) match, along with vacation time. Costco business strategy for wages may sound illogical, but it is all the part of its bigger cost savings plan. When employees are satisfied, they are less likely to quit and are more productive.

This saves the company the money it will spend on finding a new employee and then training them. By reducing employee turnover, Costco saves money in the longer run. Write this down in your homework and you teacher will be impressed!


You should choose Costco business model as your high school project because the company is not about turning high profits, it’s more about fulfilling a market niche. After reading the above article, you already have a brief idea about why the Costco business strategy is different from so many other businesses. Read more about how does Costco work and pitch a similar marketing strategy to your professor, and you are bound to impress them! Here’s to an A on your high school project!

augusta free press
augusta free press
augusta free press

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