Compared to Costco's ~33% private label share, PriceSmart is only at 19%. Growing its own branded offerings, especially in fresh food categories, represents a significant, untapped opportunity to improve margins and deepen customer loyalty.

Following lessons from Sam Walton and military history, PriceSmart prioritizes owning real estate and distribution centers. This control over its supply chain is a critical moat that ensures stability, manages costs, and provides a decisive advantage in unpredictable environments.

For owners planning a future exit, the MSP model is far superior to a reseller's project-to-project structure. The stable, predictable monthly recurring revenue (MRR) from multi-year contracts is highly attractive to investors, creating a sellable asset independent of the owner's sales prowess.

To validate a membership fee that is high for local incomes, PriceSmart bundles valuable services like free vision, dental, and even basic doctor checkups. These perks, often expensive and hard to access locally, make the membership pay for itself.

Reflecting its founder's DNA, the company deliberately avoids squeezing suppliers for the lowest price. Instead, it partners with local producers to help them scale, building a reliable, long-term supply chain that grows with the business and fosters goodwill.

PriceSmart's higher-priced 'platinum' membership tier is particularly appealing to small and medium enterprises (SMEs) like restaurants and hotels. These business customers seek quality and consistency, making them ideal targets for upselling to higher-value, recurring revenue plans.

Rather than a universal price adjustment that would upend its business model, Shipt tested its "no markups" initiative within its Target Circle 360 membership. This limited financial exposure, targeted high-value customers, and created a powerful incentive for membership renewal and engagement.

Contrary to typical advice to grow fast and be asset-light, PriceSmart expands at a deliberate, controlled pace. It focuses on owning its real estate, which provides long-term control, operational flexibility, and a more durable business model in its target markets.

Costco's business model is unique: it aims to break even on merchandise sales. This allows it to offer the lowest possible prices, building immense customer loyalty. The company's entire operating profit is derived from its annual membership fees, which represent only 2% of total revenue.