Sol Price's warehouse membership club (1976-1993) — the direct predecessor to Costco, formed when Price was ousted from FedMart and created a new, refined version of the membership warehouse concept.
Price Club refined the warehouse retail formula: membership fees, limited SKUs of high-quality goods, low margins (capped at 14%), no advertising, warehouse aesthetics. The merger with Costco (1993) created the format that now generates $230B+ in annual revenue. Price Club's operating philosophy — treating customers as partners (the membership fee creates mutual commitment) and employees with unusual generosity — became Costco's operating code.
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