FWIW, my understanding is that Costco sells everything at a fixed percentage markup. They seem to have been quite successful, and without screwing over their employees.
That's true, but Costco and Wal-Mart tilt the playing field in their direction by forcing the manufacturers to be paid up front instead take their volume incentives and marketing funds when set goals are reached...
They are both big enough to guarantee volume and marketing objectives...
So they have a 2 or 5 % cost advantage over everybody else...
I am in direct competition with both and have seen copies of their invoices which are at the same cost presented to me...except my rebates, marketing funds have to earned after I achieve my volume objectives...
Legal ...Yes.. Fair ???