Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
Unthreaded | Threaded | Whole Thread (12) |
Author: sykesix ✭  😊 😞
Number: of 22354 
Subject: Re: OT Cistco Kirkland revenue same as PG
Date: 05/22/25 1:09 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 3
Another of the drivers for Costco's success is also that they force you to overbuy. (Applicable to only some Kirkland products).
I don't need a 3-pack of half-liter shampoo bottles or 10 pounds of meat. But that's what's in the store. And then I have to finish some of it (the meat, not necessarily the shampoo) because it's there at home and I already spent money on it. And the per-ounce (per-unit) price is the same as in the comparable store selling smaller packages. There is no saving (in general, except for Costco's smaller profit margin). They really do make up on volume what they lose on margin.


A while back, I bought some Costco plastic food wrap, which is sold in a two-pack. Just for fun, I dated the first one when I started using it--April 2024. It is still going strong, and the second one hasn't been opened yet. So yes, Costco sizes are no joke. But the price per square foot is literally an order of magnitude lower than sane-sized packages from my local Safeway or Wal-Mart. You just have to a buy an absurd number of square feet.

Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to sykesix here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
Unthreaded | Threaded | Whole Thread (12) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community