Costco, the popular wholesale retailer known for its bulk merchandise and members-only perks, recently made two significant changes that have caught the attention of its loyal customer base. These changes include increased membership prices and a new policy requiring members to scan their membership card upon entry. Here’s a breakdown of what these changes entail and how they’ll impact your Costco shopping experience.
Membership fee increase
Why is it increasing?
Costco has announced an increase in membership fees. While this is not unprecedented, it is always a noteworthy move.
Costco last raised membership fees in 2017, and the company typically adjusts prices every few years to keep pace with inflation and operating costs.
new price
Gold Star and Business Memberships: Annual membership fees for Gold Star (individual) and business memberships will increase from $60 to $65.
Executive Membership: The annual fee for Executive Membership, which offers additional benefits and 2% off eligible purchases, will increase from $120 to $130.
Don’t want to join Costco?
Did you know you can shop at Costco.com without becoming a member? Yes! The only caveat is that you have to pay a 5% surcharge. But if you only need to buy things at Costco on rare occasions, it’s a smart move to avoid the annual fee.
Impact on members
For many of Costco’s loyal shoppers, a small increase in membership fees may not be that big of a deal considering the value and savings they get from shopping at Costco.
However, it is important to consider whether the benefits you receive from membership are worth the increased costs.
For example, if your annual spending at Costco is large enough that the 2% perk offsets the high fees, the Executive Membership can still provide great value.
Related Article: 10 Amazingly Easy Ways to Save Money at Costco
Justification of costs
Costco cited several factors to justify the price increase.
Product Quality: Costco is known for offering quality products, including its own brand, Kirkland Signature, which is consistently praised for quality and value.
Cost savings: Even with higher membership fees, savings on bulk purchases, fuel, pharmacy, and other services can outweigh the costs.
Member Services: Costco continues to invest in member services, including travel products, automotive programs and home services, to provide added value beyond in-store shopping.
New entry policy: Membership card scanning
In addition to increasing membership fees, Costco is implementing a new policy requiring members to scan their membership cards when entering a store.
This change is intended to improve security, streamline the shopping experience, and ensure that only paying members have access to store benefits.
Related article: Have you ever wondered why Costco checks your receipt when you leave?
Rationalization of price increases
As we continue to feel the pinch of inflation, keep in mind that Costco’s supplier costs continue to rise as well. To counter this, Costco will receive more money one way or another. Either the annual fee increases or the price goes up. I’d like to pay a little more annual fee to keep the price from going up…That being said, we’ll see how this goes over the next year or two.
structure
When entering a Costco warehouse, members must present their membership card at a scanning station near the entrance.
A Costco employee or automated system will scan your card to verify valid membership status before allowing you to enter the store.
Policy benefits
Increased security: By allowing only paying members to enter, Costco can better protect its membership-based business model and reduce unauthorized access.
Streamlined experience: The scanning process speeds entry and reduces crowding and potential delays at entry.
Data Collection: This policy allows Costco to collect data about members’ visits, which helps the company understand shopping patterns and improve its service.
See also: How to find Costco liquidation stores and save big
Potential disadvantages
Although the new policy has some benefits, it may also have some disadvantages.
Entry delays: During peak shopping periods, the scanning process may result in longer lines at the entrance.
If you forget your card: Members who forget their card may experience delays and may need to check their membership status with a customer service desk.
Privacy concerns: Some members may be concerned about increased data collection and its privacy implications.
Sit down at the food court
Costco strictly restricts the use of its food court by non-members. Costco is installing membership scanners at entrances to prevent non-members from purchasing $1.50 hot dog meals and other food court favorites. Time will tell how effective it is.
Members’ reactions
Reactions to the new policy have been mixed.
While some members appreciate the increased security and efficiency, others are concerned about potential delays and privacy issues.
Overall, Costco aims to balance these concerns by ensuring a smooth implementation process and promptly addressing any issues that arise.
How to get the most out of your membership
With increased membership fees and new membership policies, 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
Buy in bulk: Take advantage of Costco’s bulk purchases for nonperishable foods, household items, and frequently used products.
SALES AND DISCOUNTS: To save even more on already discounted prices, keep an eye out for Costco’s sales and coupon booklet.
Save money on gas: If Costco has a gas station, fill up there and save on fuel prices.
Related article: 8 cool things you can do at Costco without being a member
Avoid membership fees completely
Did you know you can cancel your annual Costco membership after 364 days and get a full refund? No questions asked. You might get some bad looks at the customer service desk. But if that doesn’t bother you, it’s definitely an option if you want to avoid annual fees. You can start a new membership at any time after canceling and receiving a refund.
2. Use member services
Travel and Automotive Programs: Explore Costco’s travel discounts and auto services for big savings on vacations, rental cars, and auto purchases.
Pharmacy and Medical Services: Costco’s pharmacy services often offer lower prices on medications, and our optician and hearing aid centers can also save you money.
3. Take advantage of executive membership
2% Reward: If you have an Executive Membership, make the most of your 2% Reward on eligible purchases. Track your spending to see if your rewards offset your high membership fees.
Additional discounts: Executive members often receive special discounts and offers, so keep an eye out for these opportunities.
4. Stay informed
Newsletter and App: Sign up for Costco’s newsletter and download our app to stay up to date on upcoming sales, new products, and special events.
Customer Service: If you have any questions or concerns about your membership or our new policies, please feel free to contact Costco customer service.
Ask our readers: What do you think about Costco’s membership fee increase? What do you think about the new “scan your card” policy upon entering the country? Let us know in the comments.
Written 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 money at stores like Amazon, Walmart, Target, and Costco. Ta. I’ve been featured on FOX News, Good Morning America, and The New York Times for my money-saving tips. (learn more)
