Costco is known for its great deals, and even the wealthy can't resist them. CNBC reports that a 2023 comparative study of Costco and Sam's Club shoppers found that Costco shoppers tend to have higher incomes.
So, what is it about Costco that attracts wealthy people? GOBankingRates asked retail and consumer experts for their opinion.
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high quality products
“The store offers a wide selection of top-quality products at competitive prices, and Kirkland Signature brands are a customer favorite,” says The Worthy Goods, a guide for consumers looking to make conscious purchases. says founder Susan Anderson. decision.
In addition to our top-rated store brands, Costco carries many top brands like Apple, Dyson, and Vitamix.
Discover: The 10 Best New Products Coming to Costco This Winter
international items
Costco sells a variety of international products that are of interest to elite flyers.
“Costco carries a variety of Asian foods, including tonkotsu ramen, katsu kits, rice, Korean chicken, nongshim udon, and bachan Japanese barbecue sauce,” said Julie Ramhold, Consumer Analyst at Deal News. To tell. “Oftentimes, I don't necessarily see these products elsewhere in my area, even in international grocery stores, and even if I do, they're almost always… Costco prices take precedence.”
natural foods
If you're looking for organic food, Costco usually has a better selection than Sam's Club.
“Sam's Club also has organic produce, but it may not have the same amount as Costco,” Ramhold said.
excellent customer service
“Costco's excellent reputation for customer service and satisfaction has helped it build a loyal following among its affluent customers,” Anderson said.
Costco's excellent customer service includes free concierge technical support services and a generous return policy. Rumhold also noted that Costco employees tend to be satisfied, which could improve the shopper experience.
“In my personal experience, Costco employees are generally in a good mood, and I can't remember a time when an employee was rude to me or unwilling to help me,” she said. “I can't say the same about my experience at Sam's Club.”
exclusivity
“The exclusivity of our membership program further enhances the store's appeal as a premier shopping destination for the wealthy,” Anderson said.
Anyone can become a member, but the $60 membership fee may be a financial barrier for some. Additionally, Costco memberships are more expensive than competitor Sam's Club, which may make it even more appealing to wealthy customers.
“Costco's basic and premium memberships are $60 and $120 a year, respectively, while Sam's Club's basic membership is $50 a year and premium membership is $110 a year, so it's not a huge amount. But the truth is, it's a good sign that Costco is trying to cater to high-income consumers because the membership options are priced accordingly,” Rumhold said.
Buy in bulk
Buying items in bulk can save you money in the long run, but it requires more money up front.
“Higher-income households are especially good at taking advantage of the cost-saving benefits of buying in bulk,” said Janelle Alvarado, retail expert and founder of Retail Boss. “With easier access to a reliable source of income, you can spend more upfront on your products and realize significant cost savings down the road.”
GOBankingRates Details
This article originally appeared on GOBankingRates.com: Surprising Habits of the Rich: Why Rich People Love Shopping at Costco