One being, income from goods sold. This is a key element in their net income each year. Costco’s strategy regarding pricing is extremely efficient. Their wholesale strategy is to sell high quality items at a lower price than its competitors. Costco continually keeps low prices and only stocks items that can be sold at high margins. Costco’s Kirkland brand has the highest profit margin with great customer recognition. The get these great margins by buying in bulk, which gives them barging power. Over time Costco’s bargaining power has in creased to keep prices even lower. This improves sales because of the low prices that can only be found at Costco. The pricing strategy used by Costco doesn’t t focus on making money through margin but setting
