Costco's membership is largely made up of middle- and upper-middle class families and small business owners who pay $50 to $100 for annual memberships. So far this year, Costco has [image-nocss] reported $386 million in revenues from membership fees alone, according to the report.
Loyal customers are willing to pay those fees because of the heavy discounts they enjoy once they walk through the door: Costco never charges more than 14% above cost for any item.
Costco currently operates 566 warehouses, including 413 in the United States and Puerto Rico, 77 in Canada, 21 in the United Kingdom, seven in Korea, six in Taiwan, nine in Japan, 32 in Mexico and one in Australia. The company also operates Costco Online, an electronic commerce Web site.
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