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Costco is one of the most successful subscriptions ever. The membership is the money.

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0:00Costco's a really interesting model. They have almost 100 million people in [music] the United States who are subscribed. And so it's almost like they have a third of America. It's one of the most successful subscriptions ever. And so what's crazy is that a lot of people think that they're making their margin on selling you more product, but it's not that at all. It's that they can buy more products so that they can get volume discounts so that people then buy the membership to gain access to that scarce resource. Having unique products in super high volume with lowest cost where people gain access to it. And the access is 100% margin. [music] So if you think about that, like the actual membership itself is just to have the privilege of shopping at Costco. And so they basically run the entire business as lean as possible and at essentially break even because the model is that the membership [music] is the money.