Eli5- How do they make profit on bottled water

Question

Hello,

We have bought a pack of bottled water at Costco, it is 35 bottle of 500ml, the entire pack was 2.75 Canadian Dollars.
How do they make profit on this, it’s about 8 cents per bottle, that would include, the water, bottle, and printed paper on bottle.
How do they make it work ?

Thank you

Update: I did some Googling, it’s indeed spring water, and not tap water. Check here: https://www.cbc.ca/amp/1.3825916

In: 1

Answer 1

Costco’s profit is basically their membership fees. The cost of goods in the store are their cost, plus the overhead costs like labor, electricity, shrinkage, etc.