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

It very well could be a “loss leader” which is a product they sell so cheap they are willing to take a loss on the product in order to get people in the store. Because most stores know once you are in the store you are going to buy more than a case of water.