Breaking News:

JEFF CAPLAN'S MY MINUTE OF NEWS

Jeff Caplan’s Minute of News: The secret you didn’t know about Costco

Aug 27, 2024, 10:00 PM | Updated: Aug 28, 2024, 3:37 pm

a woman loads groceries into her car from costco, costco membership fees are increasing...

Alanna Francom loads items into the trunk of her car in the Costco parking lot in Murray on Thursday, March 12, 2020. (Ivy Ceballo/Deseret News)

(Ivy Ceballo/Deseret News)

Editor’s note: This is an editorial piece. An editorial, like a news article, is based on fact but also shares opinions. The opinions expressed here are solely those of the author and are not associated with our newsroom.

SALT LAKE CITY — Business is easy. You buy for one, sell for two — you make money. But Sol Price had a different idea.

He was a lawyer who represented grocery stores the New York Times says in the 1950s. Sol Price took over empty warehouses in San Diego and sold a lot of this and that at rock-bottom prices. He called his warehouses FedMart Price Club, later shortened to Costco.

Now here’s the part you didn’t know. Because he was a socialist, Sol Price believed a business shouldn’t make too much money. He paid his employees well and sold everything at rock-bottom prices, but charged a small membership fee. The goal was to make sure people renewed because the money was in the membership fee.

Sol Price died in 2009, but 15 years later, the average Costco worker makes $26 an hour. And his formula for selling this and that indoors means everyday people walk in for necessities and walk out with 98-inch televisions.

The result — 70 years after this socialist set up his first warehouse, Costco has 134 million members. The membership fees that cost the company nothing bring in $5 billion. Remember buy for one, sell for two? Costco buys memberships for zero and sells them for 120 bucks. That’s what makes Costco an amazing business. And all this time you thought it was the $1.50 hot dogs.

Jeff Caplan is the host of Jeff Caplan’s Afternoon News on KSL NewsRadio. Follow him on Facebook and X. 

Other Minutes of News:

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Jeff Caplan's My Minute of News

ai powered mind...

Jeff Caplan

Jeff Caplan’s Minute of News: How old is your face?

Take a simple test on the web and thanks to AI, you’ll find out.

1 month ago

This time of year is made for hurkle durkling....

Jeff Caplan

Jeff Caplan’s Minute of News: Have you been Hurkle Durkling?

I’m a hurkle durkler … and I’m not alone. 

2 months ago

The U.S. Capitol Christmas tree is illuminated following the U.S. Capitol Christmas tree lighting c...

Jeff Caplan

Jeff Caplan’s Minute of News: The most dangerous Christmas songs for drivers

Drivers can get reckless when listening to fast tempo songs.  

2 months ago

banana...

Jeff Caplan

Jeff Caplan’s Minute of News: So how’d it taste?

The new owner ATE the $6 million banana.

2 months ago

President-elect Donald Trump speaks during a presidential debate with former Democratic presidentia...

Jeff Caplan

Jeff Caplan’s Minute of News: THE most notable quote of the year?? Find out!

Every year Yale University puts together a 'quote of the year' list. Many of this year's quotes had to do with cats.

2 months ago

FILE - A Merriam-Webster dictionary sits atop their citation files at the dictionary publisher's of...

Jeff Caplan

Jeff Caplan’s Minute of News: Word of the Year 2024

Dictionary.com has just announced its word of the year. You may already know, if you saw a demure viral clip on TikTok.

3 months ago

Sponsored Articles

Filing taxes online using a computer...

The Law Offices of Jordan F. Wilcox

Tax time is approaching. What to do if you have debilitating IRS debt

Is the IRS threatening you with wage garnishment, asset seizure or business closure? Here are some ideas to resolve your tax dilemma.

Full speed through the snow. A man on skis is pulled by his through the snow at full gallop Skijori...

Bear Lake Convention and Visitors Bureau

Get ready for an unforgettable skijoring adventure in Bear Lake!

“Skijoring the Bear” takes place this year on February 21-22 in Garden City, Utah.

the bedroom in a geodesic dome shows the night sky...

Clear Sky Resorts Bryce Canyon

Your front row to an extraordinary cosmos show

As America's first glass dome stargazing resort, Clear Sky Resorts Bryce Canyon is one of the world’s most unique and spectacular places to stay.

2 people huddled up in a blanket and warm clothes sipping hot chocolate...

Bear Lake Convention & Visitors Bureau

The best ways to spend your Christmas vacation in Bear Lake

If you're dreaming of a white Christmas this year, Bear Lake should definitely be on your radar. Read this guide for more!

big crowd of people under holiday lights in an outdoor market...

Western Nut

Our favorite family Christmas activities in Utah

We gathered up a list of our favorite activities, movies, and treats to try this holiday season that the whole family can enjoy.

an IT tech looks at a laptop in front of a server network...

Comcast Business

Tips to protect yourself from phishing attacks

Check out this resource from Comcast Business to learn more about phishing attacks and how to protect yourself from becoming a victim of one.

Jeff Caplan’s Minute of News: The secret you didn’t know about Costco