Costco is known for offering great deals, from its $1.50 hot dog combo to luxury cars, making it a popular shopping destination for all types of customers. According to Costco Chairman Hamilton “Tony” James, even the affluent are drawn to the retailer for its bargains.

James, who has been with Costco since 1988, explained that the company has always paid attention to the competition, whether it’s the local Seattle supermarket or major retail giants like Walmart and Amazon. In a recent interview with Chief Executive Magazine, he shared that Costco’s success lies in its ability to offer quality products at unbeatable prices.

“We’ve always known that if the quality is good and the price is right, we can sell anything in volume—Rolex watches, Dom Perignon, 10-karat diamonds,” James said.

While many Costco members come from average-income households, James noted that affluent shoppers, those with incomes twice the average, play a key role in the company’s success.

For example, James shared that a Porsche dealer in Seattle once showcased cars at Costco, and they sold out in just one week. “Affluent people love a good deal,” he explained.

James also touched on the popular gold bars Costco has been selling. While it’s unclear whether the buyers are wealthy or simply cautious of the economy, James expressed curiosity about the buyer demographics.

Earlier this month, Costco reported net sales of $19.51 billion for the month of January, marking a 9.2% increase from the previous year.