[**https://thescienceofhitting.com/p/ill-never-sell-a-share**](https://thescienceofhitting.com/p/ill-never-sell-a-share)

_"As we think about the business strategies that support this vision, the company’s executive membership (EM) program is a noteworthy example. Based on disclosures from the Q4 FY23 call (“executive members now represent ~73% of worldwide sales”), we can estimate the average EM spent ~$5,400 at Costco last year – roughly 3x higher than the average non-EM (~$1,700). After accounting for the 2% reward EM’s receive on eligible purchases, the all-in gross margin that Costco generates from the average EM is approximately 10.8% - **300 basis points lower than the rate for non-EM’s**. (For EM customers who spend more than the average, the effective gross margin “paid” to Costco is even lower; rewards are capped at $1,000 a year, or $50,000 of annual spend.)"_

![Image upload](https://cdn.commonstock.com/9184a955de25106b1a296d5ecd2eda3922b91debcc2a7617ec925a064e60910f-903x427.jpg)

**[**https://thescienceofhitting.com/p/ill-never-sell-a-share**](https://thescienceofhitting.com/p/ill-never-sell-a-share)
**

From the 2001 Berkshire Hathaway shareholder meeting:

https://thescienceofhitting.com/p/ill-never-sell-a-share

"I'll Never Sell A Share"

Costco: "I'll Never Sell A Share"

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