#30 – Costco: Scaling With Discipline

“Providing high quality goods and services at the lowest possible price.”

This is the purpose statement of Costco Wholesale, the American membership-based retailer founded in Seattle in 1983 and now the world’s third-largest retailer.

Costco has redefined value in retail through a purpose as clear as it is powerful: delivering quality and affordability — together. This philosophy hasn’t just shaped operations; it has shaped trust.

At the core of Costco’s growth is a series of purpose-driven choices:

1️⃣ Membership Model – Instead of margin-first pricing, Costco charges an annual fee that builds loyalty and creates upfront revenue, allowing them to focus on savings.

2️⃣ Bulk Purchasing – Buying large volumes drives supplier discounts, which are passed directly to customers.

3️⃣ Limited Selection – Fewer SKUs with strict quality control keeps inventory lean and simplifies purchasing power.

4️⃣ Low Markup Policy – With a typical margin under 15%, far below industry averages, Costco builds long-term credibility.

5️⃣ Employee-Centered Culture – Paying above-market wages and offering real benefits leads to lower turnover and better service.

Between 2014 and 2021, Costco achieved an 8% compound annual revenue growth, outperforming giants like Walmart and Target.

From one warehouse in Seattle to a trusted global brand, Costco shows how a simple, operational purpose — when lived with discipline — can scale sustainably, without compromise.