The Amount Of Money You Spend Per Minute Shopping At Costco – Mashed

Costco maintains its surprisingly low prices by charging membership fees, streamlining its inventory, and treating its workers relatively well (which helps reduce turnover rates). It also utilizes methods for increasing profits whenever it can, particularly through its efforts to keep customers in the store for as long as possible. A recent Instagram video from Morning Brew, a media brand that covers a variety of business topics, indicates that the average shopper spends about 37 minutes in the store. As explained in the clip by Morning Brew contributor and financial expert Phil Andrews (aka Maxinomics), consumers spend $1.75 a minute, which means a 37-minute excursion will total $64.75.

Costco’s strategy appears to be successful, as the chain’s revenue totaled $242.29 billion in 2023. As the Morning Brew video illustrates, Costco’s focus on boosting “dwell time” in its locations is helping it surge ahead of competitors like Target and Walmart, with average customers spending less time in those establishments.

The warehouse chain increases dwell time in a number of ways, including situating sought-after products and displays like sampling kiosks further inside the store. Similarly, Costco sends shoppers on a treasure hunt by moving items around, which also raises dwell time — and, presumably, profits. 

Many of the common mistakes made by Costco shoppers will result in a bigger bite being taken out of their grocery budget. For instance, Morning Brew mentions the placement of free samples in the back of Costco locations. This layout is designed to increase the time shoppers spend in the store.

And lest you think Costco’s famously inexpensive hot dog and soda food court combo stems from a place of altruism, know that the low price makes the meal more appealing, and ordering food can result in more time spent within the store. (If inflation were a factor, the hot dog combo would cost about $4.40.) 

Having a better understanding of the often-confusing store layout can make for a more efficient Costco run. Head toward the center of the store first to access the best deals, and avoid the front where the big ticket items live. As for the food court, there’s a smart way to reduce your wait time: You can place your order with the cashier, and these items will be added to your receipt. After check-out, you can pick up your food without the wait, which reduces the amount of time spent browsing the store.