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  1. Stocking items that customers have a strong demand for
  2. Charged membership
  3. Costco and its employees
  4. A successful business model
  5. The growth of the American family

Many people are familiar with Costco's reputation for selling incredibly large amounts of toilet-paper, diapers, breakfast cereals, and paper towels. However, many people are not aware that Costco also offers plasma TV's, Seven Jeans, and grand pianos for sale as well. In fact, this diverse product mix of consumer products packaged in bulk along with discount luxury goods is one of the keys to Costco's success in the warehouse market. Costco continues to succeed because it can effectively predict customer needs and wants, stock only those items that customers have a demand for, and foster impulse purchases of luxury goods.

[...] As growth of American families has been fueled in large part to discount chains such as Costco, that offer large quantities for low prices. This has led some people to criticize Costco for ?feeding American consumerism and waste,? leading many to wonder many things do you need 42 (Bick). Nonetheless, there does not appear to be any sort of reversal of the trend in growth and Costco remains a top destination of the ever growing American family. I believe that many others discount stores will try to imitate Costco's business tactics. [...]

[...] Costco remains profitable by stocking only those items that customers have a strong demand for. According to Costco's chief financial officer, ?while a grocery store might stock 40,000 separate types of times, and a Wal-Mart might stock 100,000, Costco will stock only the 4,000 most popular items it can find? (Bick). The 4,000 items offered at Costco are not limited to bulk necessities such as laundry detergent and tissue paper, but also popular luxury items. This includes high-end electronics items, such as i-Pods and plasma TV's, as well as clothing items, such as Ugg boots and Seven jeans. [...]

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