Paul Sakuma/AP Images Costco has gained a loyal following by offering some of the lowest prices in 
- Costco's membership deals are a crucial part of why its prices are so low - but that's not the only reason why Costco is so cheap.
- The retailer's business model depends on its ability to offer dirt-cheap prices on everything from golf balls to toilet paper.
- Costco uses strategies including cutting advertising, limiting stock, and building up its private Kirkland brand to keep prices uber-low.
Costco has gained an army of followers by keeping costs as low as possible.
Hot dogs cost just $1.50 at the in-store café. Rotisserie chickens have cost $4.99 since 2009. Wine costs 20% less than most wine stores, meaning customers save $5 to $12 on every bottle.
Costco has built a business model that depends on offering customers the lowest prices possible. The retailer doesn't need to advertise - news of its fantastic deals spreads simply through word of mouth.
"When I started, Sears, Roebuck was the Costco of the country, but they allowed someone else to come in under them," Costco's co-founder Jim Sinegal told The New York Times in 2005. "We don't want to be one of the casualties. We don't want to turn around and say, 'We got so fancy we've raised our prices,' and all of a sudden a new competitor comes in and beats our prices."
While offering the best deals possible is good business for Costco, keeping prices low is often easier said than done. Costco has a growing number of competitors in the bargain retail space, including Walmart, dollar stores, and discount grocery chains like Aldi and Trader Joe's.
However, Costco is still managing to beat out the competition. In 2017, the company reported $126.2 billion in revenue, a 9% increase from the prior year, when it reported $116.1 billion in revenue.
Here are seven strategies Costco uses to keep prices low and save customers money:
