Pretty good summary. I agree with much of it. However, I too purchase fuel from Costco, but their lower fuel price is not an accurate reflection of the product’s actual cost. You see, Costco charges a membership fee. That membership fee represents the majority of the company’s annual profits. The cost of a hotdog and soda, and fuel, seem too good to be true until you realize your membership fee (along with everyone else’s, especially those who don’t purchase hotdogs and soda or fuel, is actually offsetting that “low fuel cost” and the “low-cost” hotdog and soda.
“You see, Costco charges a membership fee.”
Yes, they do, but if you use their Credit Card, they give you the following cash back benefits:
“Cash back rewards: Using the Costco Anywhere Visa Card by Citi, you can earn 4 percent cash back on the first $7,000 spent on gas annually (then 1 percent), 3 percent cash back at restaurants and on eligible travel purchases, 2 percent cash back on all other purchases at Costco and Costco.com and 1 percent cash back on all other purchases.”
So in addition to having gasoline prices that are the lowest I’ve seen here, we also get a 4% discount on all the gas we buy each year, which at the moment totals $3,881.04 or a discount of $155.24!