I guess that still doesn't explain why consumer preferences need to be conveyed through a strongman like Costco?
Is Costco really doing anything other than selling the more expensive version which you could buy anyway?
If not it suggests Costco is acting as some kind of hired protection, which definitely doesn't sound like an optimal supply choice scenario in an ideal market.
They don’t need to, it just happens to be in the best interest of Costco, so Costco inserts itself.
People buy larger ticket items at Costco because they trust it to work, with a return policy that makes it a safe bet. So Costco needs to sell products that don’t get returned in order to make this strategy work.
They are creating a trusted environment where you can buy things that don’t suck. That has value. If it was the mafia they would require you to shop there.
Costco is also saving themselves money by making sure that people don't return HP printers because they don't work. When you have a known liberal return policy that is a feature of the membership, you have an incentive is to make sure that customers don't want to return those products.
So, I see it less as a trusted environment and more as a seller motivated to make sure returns don't hit their margins. A consumer-positive/trusted environment is still be a good thing for consumers, regardless of if the creation of that environment was motivated by the bottom line.
Is Costco really doing anything other than selling the more expensive version which you could buy anyway?
If not it suggests Costco is acting as some kind of hired protection, which definitely doesn't sound like an optimal supply choice scenario in an ideal market.