Costco

Capping markups and paying well above rivals turned fairness into decades of compounding growth.

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The Finding

Choosing long-term value for customers and employees over short-term margin built rare loyalty and durability.

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What They Did

• Refuses to mark up products more than 14%, even when competitors raise prices.

• Keeps the $1.50 hot dog combo despite inflation as a goodwill gesture.

• Pays employees ~40% more than competitors, plus full benefits.

• Gives suppliers long-term stability instead of squeezing them.

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The Results

• 90%+ membership renewal — among the highest loyalty in retail.

• Grew from ~$3B in the 1990s to over $200B in revenue.

• Employee turnover well below industry norms, lifting productivity.

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Love Indicator Business Outcome

Generosity Loyalty, retention & growth