COSTCO WHOLESALE RESELL MASTER Sections 4–6: Profit Margin • Membership Discounts • Wholesale Buying Strategy A condensed 3-page operating insert built from the uploaded Costco Wholesale & Resell Master Matrix. The goal is simple: buy only when the discount creates enough room for fees, shipping, and a real net profit. SECTION 4 — PROFIT MARGIN CONTROL Use net profit—not the sticker-price spread—to make the buying decision. The source defines net profit as gross sale minus COGS, fees, and shipping, and recommends tracking sell-through as well. Metric Formula / Rule Target COGS What you paid for the item Track every unit Net Profit Sale price − COGS − fees − shipping Prefer $15–$20+ / unit ROI Net profit ÷ COGS Prefer 30–40%+ Sell-through How quickly inventory converts to cash Aim for 50%+ / 30 days Wholesale Examples From the Source Item Cost Retail Gross Profit Margin Dishwasher Pacs (115 ct) $13.49 $26.95 $13.46 49.9% Nitrile Gloves (400 ct) $21.99 $38.50 $16.51* 42.8%* Scrub Daddy Sponge Pack $14.99 $29.99 $15.00 50.0% Kirkland Minoxidil (6 mo.) $29.99 $59.99 $30.00 50.0% Sonicare Brush Heads (8) $39.99 $69.99 $30.00 42.8% Dyson Clearance $299.97 $449.99 $150.02 33.3% *The PDF extraction contains formatting artifacts in a few rows; treat the displayed source figures as gross-margin examples and verify the live shelf price, sold price, platform fee, and shipping before buying. The Buying Rule Before putting an item in the cart: (1) check the actual sold price, (2) subtract your purchase cost, (3) reserve money for platform fees and shipping, and (4) reject anything that does not meet your minimum profit/ROI. Source basis: the uploaded document's financial-metrics and Costco matrix sections. n filecite n turn1file6 n L738-L756 n SECTION 5 — MEMBERSHIPS, DISCOUNTS & PERK STACKING The source identifies Costco Business and Executive Business memberships as the key business/resale tiers. It also describes a 2% Executive reward and business-service discounts, including PODS. Because membership pricing and benefits can change, verify the current Costco terms before purchasing. Tier Annual Fee in Source Business Use / Reward Business Membership $65 Business purchasing; resale authorization; resale-certificate/tax-exempt purchasing described in source Executive Business $130 Business benefits + 2% annual Executive Reward, up to $1,250; source also lists business-service discoun Gold Star $65 Personal membership; warehouse/Costco.com access and other standard benefits Executive $130 Personal benefits + 2% annual reward on eligible purchases, up to $1,250 How to Make the Membership Pay for Itself The source says the Executive upgrade is $65 more than the basic tier and provides a 2% reward. At a 2% reward rate, the simple break-even purchase volume for a $65 upgrade is about $3,250 in eligible purchases (before considering exclusions or other benefits). That means the upgrade becomes more compelling as your resale inventory volume grows. Discount / Perk How to Use It Profit Impact Executive 2% reward Treat the annual reward as a year-end reduction in inventory cost Raises effective margin slightly Clearance pricing Prioritize .97 and .00 markdowns per the source Creates a larger buy-to-sell spread Resale certificate / tax treatmentUse only if you qualify and have the required documentation Can reduce cash tied up in purchase tax PODS / business-service discount Use only when moving/storage is part of your operation Can reduce logistics/overhead Business cards Add only people who actually need purchasing access Controls labor/purchasing access cost Discount Strategy: Don't Buy Because It's Cheap A 30% store discount is not automatically a 30% business profit. Your real advantage comes from the combination of low acquisition cost + proven sold price + manageable shipping + platform fees + fast sell-through . For a beginner-friendly system, scan first and buy second. Source basis: membership tiers, Executive reward, business perks, and clearance guidance. n filecite n turn1file0 n L70-L108 n n filecite n turn1file7 n L775-L824 n SECTION 6 — WHOLESALE ITEM PROFIT MATRIX Use this page as the quick-buy sheet. The strongest examples in the source are compact household goods, snacks sold by the individual unit, and selected personal-care/seasonal items. Wholesale Item Source Cost Target Retail Gross Profit Source Margin Microfiber Towels 36-pack $18.99 $34.99 $16.00* ≈ 46–47%* Dishwasher Pacs 115-ct $13.49 $26.95 $13.46 49.9% Nitrile Gloves 400-ct $21.99 $38.50 $16.51* 42.8%* OXICLEAN Powder 11.6 lb $20.49 $38.00 $17.51 46.0% Scrub Daddy 8-pack $14.99 $29.99 $15.00 50.0% Frito-Lay Variety Pack $24.99 box $1.75/unit $1.29/unit 73.7% Candy Bar Pack 30-ct $26.99 box $2.25/unit $1.35/unit 60.0% Protein Bars 42-ct $18.49 box $1.75/unit $1.31/unit 74.8% Takis Fuego 46-ct $21.99 box $2.00/unit $1.52/unit 76.0% Minoxidil 6-month $29.99 $59.99 $30.00 50.0% Sonicare Brush Heads 8 $39.99 $69.99 $30.00 42.8% Dyson Clearance $299.97 $449.99 $150.02 33.3% *Some extracted rows in the original PDF have OCR/formatting corruption. Use these as planning examples, not guaranteed current Costco prices. All margins shown are gross margins before platform fees and shipping, as the source explicitly states. Best Beginner Wholesale Categories 1 Lightweight cleaning Microfiber, sponges, dishwasher tablets/pods Easy shipping; repeat household demand 2 Small personal care Brush heads and selected personal-care products Higher dollar profit per unit 3 Snack/vending Individually resold packaged snacks High unit margin; requires local demand 4 Clearance/seasonal Small appliances and marked-down goods Big spread possible; higher capital risk The 60-Second Buy / No-Buy Test BUY: Proven sold price • lightweight/compact • $15–$20+ expected net profit • 30–40%+ ROI • recent sales. PASS: bulky/expensive shipping • weak demand • platform restriction • counterfeit/replica risk • margin disappears after fees. Important: the source specifically warns against counterfeit/replica designer goods and recommends legitimate wholesale overstock or unbranded/private-label blanks instead. n filecite n turn2file0 n L11-L18 n MASTER FORMULA Net Profit = Selling Price − Wholesale Cost − Platform Fees − Shipping − Other Direct Costs Then: Net Margin = Net Profit ÷ Selling Price and ROI = Net Profit ÷ Wholesale Cost Source: Costcowholesale .pdf, especially the financial metrics, membership/discount, and wholesale matrix material. This insert is a planning tool; verify current Costco prices, membership terms, marketplace fees, and shipping rates before purchase.