Costco, the beloved wholesale retailer known for its bulk goods and member-exclusive benefits, has recently made two significant changes that have caught the attention of its loyal customer base. These changes include an increase in membership prices and a new policy requiring members to scan their membership cards upon entry. Here’s a detailed look at what these changes entail and how they might affect your shopping experience at Costco.
Membership Price Increase
Why the Increase?
Costco has announced a membership price increase, a move that is not unprecedented but always noteworthy.
The last time Costco raised its membership fees was in 2017, and the company typically adjusts prices every few years to keep up with inflation and operational costs.
The New Prices
Gold Star and Business Memberships: The annual fee for Gold Star (individual) and Business memberships will rise from $60 to $65.
Executive Memberships: The annual fee for Executive memberships, which offer additional benefits and a 2% reward on eligible purchases, will increase from $120 to $130.
DON’T WANT TO JOIN COSTCO?
Did you know that you shop on Costco.com WITHOUT being a member? True enough. The only caveat is that you’ll have to pay a 5% surcharge. But if you only need to buy stuff from Costco on rare occasions it’s a smart way to avoid the annual membership fee.
Impact on Members
For many loyal Costco shoppers, the slight increase in membership fees might not be a dealbreaker given the value and savings they receive from shopping at Costco.
However, it’s essential to consider whether the benefits you gain from your membership justify the increased cost.
The Executive membership, for instance, still provides significant value if your annual spending at Costco is substantial enough to offset the higher fee with the 2% reward.
See Also: 10 Ridiculously Easy Ways to Save Money at Costco
Justifying the Cost
Costco justifies the price hike by pointing to several factors:
Quality of Products: Costco is known for offering high-quality products, including its private-label brand, Kirkland Signature, which consistently receives praise for quality and value.
Cost Savings: Even with higher membership fees, the savings on bulk purchases, fuel, pharmacy, and other services can still outweigh the cost.
Member Services: Costco continues to invest in member services, including travel deals, auto programs, and home services, providing added value beyond just in-store shopping.
New Entry Policy: Membership Card Scanning
In addition to the membership fee increase, Costco is implementing a new policy that requires members to scan their membership cards upon entering the store.
This change aims to enhance security, streamline the shopping experience, and ensure that only paying members access the store’s benefits.
See Also: Ever Wonder Why Costco Checks Your Receipt When Exiting?
RATIONALIZING THE FEE INCREASE
As we continue to feel the pinch of inflation, keep in mind that Costco’s supplier’s costs continue to rise as well. To fight this, Costco will get more of your money one way or another. Either through an annual fee increase or raising prices. I’d rather pay a little more for my annual fee and have their prices not skyrocket…with that said, we will see how this plays out in the next year or two.
How It Works
Upon entering any Costco warehouse, members will now need to present their membership cards at a scanning station near the entrance.
A Costco employee or an automated system will scan the card to verify active membership status before allowing entry into the store.
Benefits of the Policy
Enhanced Security: By ensuring that only paying members can enter, Costco can better protect its membership-based business model and reduce unauthorized access.
Streamlined Experience: The scanning process can help expedite entry, reducing congestion and potential delays at the entrance.
Data Collection: This policy allows Costco to gather data on member visits, which can help the company understand shopping patterns and improve services.
See Also: How to Find Costco Liquidation Stores and Save Big
Potential Drawbacks
While the new policy has several advantages, it may also pose some inconveniences:
Entry Delays: During peak shopping times, the scanning process might lead to longer lines at the entrance.
Forgotten Cards: Members who forget their cards may face delays or need to verify their membership status at the customer service desk.
Privacy Concerns: Some members might be concerned about the increased data collection and its implications for privacy.
BUCKLING DOWN ON THE FOOD COURT
Costco is buckling down on non-members taking advantage of the food court. By installing membership scanners at the entrance, Costco is trying to eliminate non-members from buying the $1.50 hot dog meal deal and other food court favorites. Time will tell how effective it will be.
Member Reactions
Reactions to the new policy have been mixed.
Some members appreciate the added security and efficiency, while others worry about potential delays and privacy issues.
Overall, Costco aims to balance these concerns by ensuring a smooth implementation process and addressing any issues that arise promptly.
How to Make the Most of Your Membership
With the increased membership fees and the new entry policy, it’s more important than ever to maximize the value of your Costco membership.
Here are some tips to help you get the most out of your membership:
1. Shop Strategically
Bulk Purchases: Take advantage of Costco’s bulk offerings for non-perishable items, household goods, and products you use frequently.
Sales and Discounts: Keep an eye on Costco’s sales and coupon booklets to save even more on already discounted prices.
Gas Savings: If your Costco has a gas station, fill up your tank there to benefit from lower fuel prices.
See Also: 8 Slick Things You Can Do at Costco WITHOUT a Membership
AVOID THE MEMBERSHIP FEE ALTOGTHER
Did you know that you can cancel your annual Costco membership on day 364 for a FULL refund? No questions asked. You might get a dirty look at the customer service desk. But if that doesn’t bother you, it’s definitely an option if you want to avoid the annual fee. You can always start a new membership once it’s cancelled and you get your refund.
2. Use Member Services
Travel and Auto Programs: Explore Costco’s travel deals and auto services, which can offer substantial savings on vacations, car rentals, and auto purchases.
Pharmacy and Health Services: Costco’s pharmacy services often provide medications at lower prices, and their optical and hearing aid centers can also save you money.
3. Leverage the Executive Membership
2% Reward: If you have an Executive membership, make sure you’re taking full advantage of the 2% reward on eligible purchases. Track your spending to see if the reward offsets the higher membership fee.
Additional Discounts: Executive members often receive exclusive discounts and offers, so watch for these opportunities.
4. Stay Informed
Newsletters and Apps: Sign up for Costco’s newsletters and download their app to stay informed about upcoming sales, new products, and special events.
Customer Service: Don’t hesitate to reach out to Costco’s customer service with any questions or concerns about your membership or the new policies.
Ask the Reader: How do you feel about Costco raising membership fees? What about their new “scan your card” upon entry policy? Let me know in the comments.
By Kyle James
I started Rather-Be-Shopping.com in 2000 and have become a consumer expert and advocate writing about out-of-the-box ways to save at stores like Amazon, Walmart, Target and Costco to name a few. I’ve been featured on FOX News, Good Morning America, and the NY Times talking about my savings tips. (Learn more)