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Costco Membership Fees and Plans

By , June 22nd, 2015 | 4 Comments »


Costco membership fees and plans
If you don’t live in a cave, the chances are that you have checked out Costco, or at least heard the buzz about the bargains you can find at the bulk warehouse retailer. Most people who have memberships will agree that a membership to Costco will save you money in the long run. The problem for many is Costco doesn’t offer a trial membership or a one-day pass so you can figure out whether the warehouse is worth it for you. While there are ways to shop at Costco without a membership, they aren’t convenient for most, and if you shop at the store on a regular basis, you will want a membership. So the question is, “What are the membership plans and fees?” At Costco, membership plans are not a “one size fits all” deal. Plans range in price from $55 – $110, depending upon your plan’s features.

The first option is the Executive Membership. This is the highest level of membership offered at Costco. The real bonus of the Executive Membership is the fact that members can take advantage of a 2% reward on most of the purchases made at Costco. On the website, Costco states that this reward can be up to $750 per year. Executive members also receive greater discounts on other services offered at Costco. The Executive Membership will run you $110 in annual membership fees. The Executive Membership also includes household membership.

The next level of plans is the Business Membership. This level is meant for business owners who want to share price savings within their company. It is available to business owners and business managers, and products purchased can be either for business or personal use. This plan comes with two cards. Members of the Business Membership level are able to add up to six additional cardholders to their account at the rate of $55 each.

Finally, there is the Gold Star Membership level. This is the plan meant for individuals and households. This membership plan has a $55 annual membership fee and is commonly used to purchase items for normal household use. This plan comes with two membership cards.

Costco aims to keep their prices low and their customers satisfied. One way they can accomplish this goal is through membership fees, which translates into savings for their customers. These savings are mainly noticed by those who own small businesses or have large families. Individuals, who may not need to purchase items in bulk, may not notice significant savings.

Executive Members make up a high percentage of cardholders, roughly 38%. The overall membership renewal rate is astonishingly high, at 90%. It also seems that when customers have to pay a membership fee for shopping privileges they will shop at that store more often. Consumers want to be sure that they are getting their money’s worth.

Regardless of the membership that you choose, it seems that customer satisfaction and great savings is Costco’s goal. With the high rate of membership renewals, Costco’s customers appear to be pleased.

For more info on Costco check out these articles.

Is the Costco Membership Fee Worth it?

Is a Costco Executive Membership Worth the Price?
Costco Gas Calculator: Will I Save Money Buying a Membership if All I Buy is Fuel?

Costco Return Policy

Costco Holiday Schedule

Costco Tires

 

You can check out our articles for Target as well.

Target Christmas Store Hours

Target Holiday Schedule and Store Hours

(Photo courtesy of AgentAkit)

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Comments

  • Dave says:

    I’ll come out and say the truth even though it will rile up all the Costco loving hoards. Costco membership is a rip off. You pay $55 or $110 to buy stuff at prices that are OK, but not great. You overbuy because everything is in bulk and you buy stuff you would have never bought without a membership. Do yourself a favor and don’t get a membership. it will save you a ton of money.

    • Brian Johnson says:

      Ahhh. No way. Will gladly give my $110 each year. Markup is guaranteed to not exceed 15%. Never gotten a bad deal at Costco. Even if I did almost evereverything can be returned at anytime for any reason no questions asked even without the receipt. If you are buying stuff you dont need that is a shopping habit not costcos fault and can happen anywhere. Even if you dont find yourself saving money just cancel the membership and get your money back. You have NOTHING to lose.

    • vincent says:

      That could not be further from truth. In gas alone i make up up for the membership fee. My costco gas station on average sells gas at 15-20 cents less than a gas station across the street. With my weekly 20 gallon fill up it translates to $2-4 in savings per week. Multiply by 52 weeks and the benefit is clear. Every week is obvously differen but these are ball park numbers.

  • Jordan says:

    We have a Costco membership, just the standard one. We’ve found that while there’s some products that are great to get from Costco in bulk, you actually aren’t doing yourself any favors buying a whole bunch of something you’re not going to finish before it expires. Overall I think it’s probably a better deal if you have a big family that goes through lots of food.

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