alt Hacker NewsI wish Costco were accessible to basically everyone. Among some poorer people I've got to know in the SF Bay Area, having the card and confidence in the means to use it are a mark of the middle class, an aspirational thing.
Membership is an up-front cost. That excludes those who can't part with the cash for no immediate benefit. Depending on what you buy, and what else is available around you, breakeven can take a good part of the year and a sizable number of purchases. Basically, you have to have the cash flow to play with money over time, even over a short timeline like an annual membership cycle.
Costco also sells many if not all items in relatively large quantity, so membership makes more sense for those who can afford to pre-buy and store more than they need. It's the inverse of something like a so-called dollar store, which is too often where poor people get stuck buying smaller than grocery-standard quantities at higher per-unit costs.
Of course, sometimes it makes sense to pool funds, buy together on one membership, and break packs. That costs coordination. Corner stores in poorer areas where I live often do this, with business memberships and resale certificates. At a margin, of course.
I can't pretend to truly understand what it's like not being able to afford Costco. But I've had some opportunities to hear people who see it as out of reach. And to make some trips with "guests".
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In San Diego, we have a discount store called GTM that buys Costco closeouts and scratch-and-dent items and resells them for less. It has a loyal base of bargain shoppers, and it feels a bit like a treasure hunt.
You can buy normal or even individual quantities, like a single roll of paper towels, with no membership required. I imagine other big cities have similar stores, probably in lower-income areas, that fill a similar role.
In many cases that is the desired effect:
Cashflow constraints are a good predictor for problematic behaviour.
Example: Being poor is not the reason for drug addiction, but drug addiction will make you poor in the long run.
The one good thing about this is: As low liquidity is often used as a classifier to gate access, a single kickstart payment can sometimes do wonders.
A security deposit for a flat and money for a Costco card can change lives.
And thereby it is necessarily impossible for Costco to be available to everyone. The spending dynamic you've described is Costco.
Costo makes almost no money on food sale, and almost all of its profit from the membership fee. It's required for their business model, which is VERY friendly for its employees. This is an example of capitalism done right.
I dont understand this. All Costco memberships are functionally $65 at most. How is this beyond literally anyone in America? Am I so out of touch? Why would corner stores have to pool together to get a membership when they absolutely negate the cost of the membership from the cashback? You only have to spend roughly $6,500/year for the executive membership of $130 to cost zero. That seems like something a corner store in any neighborhood wouldn't have much issue doing. As for the non store owners... $65 is the cost of one or two fast food meals. I don't believe this.