Club Program Calculator
Model your complete Costco economics—from COGS to steel price, regional test to national rollout across all 600+ warehouses.
Product Cost Structure
Step 1 of 4Manufacturing cost per sellable unit
Club pack packaging per unit
Avg landed cost to Depot
Insurance, storage, etc.
Retail Pricing Strategy
Step 2 of 4Standard retail price (Target, grocery, etc.)
Costco typically requires 20-30% off MSRP
Auto-calculated from MSRP & discount
Member Value Guidance
Costco members expect significant value vs. conventional retail. The typical sweet spot is 20-25% below grocery/Target pricing. Too small a discount may impact velocity on the steel; too large erodes your margins. Buyers evaluate member value carefully.
Costco Economics & Allowances
Step 3 of 4Typically 12-14% (max ~15%)
Product damage, returns, shrink
Roadshow/in-warehouse demo costs
Volume rebates, promos, etc.
Your Pricing Analysis
Total Landed Cost
$11.00
Per unit to Costco DC
Your Sell Price to Costco
$23.47
After Costco margin
Gross Margin Per Unit
$12.47
53.1%
Net After Allowances
$11.65
49.6%
Final Contribution
$0.65
2.8% of retail
Margin Waterfall
| Line Item | Per Unit | % of Retail | Running Total |
|---|
Healthy margins. Your contribution margin supports sustainable club operations.
Velocity Assumptions
Volume PlanningCostco expects 6-12+ for most categories
Peak season multiplier
Duration of peak season
Expected velocity increase
Rollout Plan
Warehouse DistributionInitial warehouse count (Months 1-6)
Month 7-12 warehouse count
Full Year 2 distribution
Volume & Revenue Forecast
Year 1 Units
52,000
Total units sold
Year 1 Revenue
$1.22M
Gross to you
Year 2 Units
239,200
With expansion + growth
Year 2 Revenue
$5.61M
Gross to you
24-Month Forecast
Pack Configuration
SKU SetupSellable units in master case
Inches
Gross weight per case
On standard 48×40 pallet
Max stack height
Costco typically 48-60"
Including pallet (~50 lbs)
Standard pallet spec
Pallet Configuration
Cases Per Pallet
48
8 × 6 layers
Units Per Pallet
384
Sellable units
Pallet Weight
1,202 lbs
✓ Within limit
Revenue Per Pallet
$9,012
At your sell price
Pallet & Order Planning
Order Size Planning
| Warehouse Count | Weekly Units | Weekly Pallets | Monthly POs |
|---|
Rollout Scenario Comparison
Strategic PlanningCompare regional test, multi-region expansion, and full national rollout economics.
Investment & Break-Even Analysis
If any (rare for Costco)
Working capital for launch
Roadshows, sampling, etc.
Break-Even & ROI
Total Y1 Investment
$75,000
Setup + inventory + marketing
Break-Even Units
6,438
To recover investment
Break-Even Timeline
4.2 mo
At projected velocity
Year 1 ROI
347%
Return on investment