[levthedev]

This is technically true, but sort of misses the mark. Costco does not price goods such that their Cost of Goods Sold + Operating Expenses = their Membership Fees + Non Alcohol Gross Revenue, Alcohol Gross Revenue to be their main source of profit. They do price goods such that their COGS + OPEX = Gross Revenue, leaving their membership fees to be the main source of profit.

In other words, you can say that any given vertical worth $Xbn of their revenue was their profit, if you are convinced that Costco actually models their pricing around that vertical section of their revenue. But in reality, everyone knows that the section they model around is membership fees - everything else is break even and the fees are profit.