Submitted by MikeTorsson t3_11br3hs in explainlikeimfive
blipsman t1_j9zhvax wrote
They only restrict it to all people who are willing to pay $60/yr...
Basically, their entire business model is effectively selling goods at cost and making their profits from the membership fees.
Are there people who don't shop there because they don't want to pay the fee? Sure... but those who do pay the fee are more brand loyal and shop there more. There are efficiencies from selling more stuff to fewer people than trying to serve more people.
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