Part 5/9:
Costco excels not only through operational efficiency but also through psychological triggers embedded within its shopping experience. The dynamic inventory, often referred to as the “treasure hunt,” encourages customers to make impulse buys, driven by a fear of missing out on limited-time deals. This ever-changing array of products pushes shoppers to make decisions on the spot rather than waiting.
Moreover, the company's markup strategy is capped at a maximum of 14% across most products, drastically lower than traditional retail practices, which often see markups between 50% to 100%. This commitment to keeping costs low fosters an environment where customers feel they are receiving exceptional value.