# Merc Strategy

Site: https://www.mercstrategy.com/

## Recent posts

- [Costco Sells Cheap Goods Because Its Members Pay for Access](https://www.mercstrategy.com/costco-membership-profit-model/): This article explains Costco's business model, detailing how the company generates an estimated $5.3 billion in fiscal 2025 from membership fees. This upfront monetization enables Costco to sell goods with thin markups, providing predictable value to members.
- [Owners, Not Sheriffs, Close Most South African Businesses](https://www.mercstrategy.com/voluntary-business-liquidations-south-africa/): This article explains that most business liquidations in South Africa are voluntary, initiated by owners rather than creditors. It details how these closures typically follow a slow, deliberate decline in operations, not a sudden collapse, based on Stats SA data for 2025.
- [How a Funeral Home Actually Makes Its Money](https://www.mercstrategy.com/funeral-home-business-economics/): The article analyzes the financial operations of funeral homes, focusing on their revenue generation strategies. It details the impact of large fixed costs, including vehicle expenses, and how profits are derived from high-markup merchandise and essential service bundles sold to grieving clients.
- [The Earn-out Clause That Lets Buyers Game a Founder's Exit](https://www.mercstrategy.com/earn-out-clause-buyer-games-founder-exit/): This article explains earn-out clauses in business acquisitions. It details how these clauses structure deferred payments based on post-sale performance, often leading to founders losing control over the business's future while buyers gain leverage to influence outcomes and final payouts.