Costco earns almost all of their profit from the membership fees and tries to keep all the product sales at break even pricing. Which makes their future precarious as the average member age is 50+, explaining the missing technology focus compared to say WalMart Labs or Amazon. They send Costco employees out to the farms to inspect every stage of the meat process, from raising the animals to the slaughter and packaging to ensure the quality. Disclosure: former IT employee at Costco HQ.