What Is The Difference Between Sams And Costco

179 Words1 Page

Sam’s and Costco are both prime examples of organizations that use the two-part pricing method. The two-part pricing method occurs which the price of the product is composed of two different parts which consist of a lump-sum fee and per unit charge. The lump-sum fee is fixed and in the example of Sam’s and Costco it would their access fee or membership fee. The per-unit charge is variable which means it could change depending on the demand of the market during the various sales seasons. For stores like Costco and Sam’s the demand for their products are typically higher doing the holiday season thus their pricing per unit would reflect that change in demand. In order to maximize profit in stores like Sam’s and Costco the stores should use their

Open Document