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.
You can check out our articles for Target as well.
(Photo courtesy of AgentAkit)