Kevin and Costco

[daikun]

I know that there was a very old Diggnation episode where Kevin met with someone at Costco, and he revealed how Costco manages to lower its prices.

Does anyone remember which episode this is?

[bb4034]

Actually I think that was Alex who met someone from costco on a plane and the guy said that profit was made from customer membership fees.

[smes]

Costco has lower prices because they are a wholesaler.

[bayareaking510]

also because you're buying in bulk