Your Costco Membership Could Get More Expensive in 2017
Costco isn't a company known for unnecessarily raising prices on anything. In fact, it famously stopped selling Coca-Cola products back in 2009 when the two companies couldn't agree on a price that was low enough.
So members are no doubt alarmed to hear that back in September, the warehouse club increased its membership fees for the U.K., Taiwan, Korea, Japan, and Mexico. Naturally, analysts now expect it to do the same for the U.S. and Canada.
An Increase is Coming... Soon
Generally, Costco raises its membership prices every five to six years, so warehouses in the U.S. and Canada are due for one. According to Richard Galanti, the CFO of the warehouse club, this month marks the 5-year anniversary of the last increase. Even so, he can't confirm or deny that an increase is happening this year, or when it will come.
The last time membership fees increased was in 2011, and that was about 10%. Analysts are expecting about the same this time. That would mean that the Gold Star membership, which is the basic tier, could increase about $5, from $55 to $60. The Executive Gold Star membership, which offers an annual membership reward and more services, could jump $10, from $110 to $120.
Costco is Already More Expensive
Costco competitors Sam's Club and BJ's Wholesale Club already have cheaper memberships. Sam's Club charges $100 for its rewards-based membership, and $45 for its basic tier. BJ's is about the same, with $100 for its rewards program, and a basic that's $50. If this increase at Costco goes through in the next couple months, then it'll only be widening that margin even more.
SEE ALSO: You Don't Even Need a Membership to Save Money at Costco
Don't forget that there's even a few ways to take advantage of its services without being a member. If the increase is just too much for you, it's entirely possible to use the pharmacy, and even access the food court at certain clubs without joining. Or you can just tag along with your friend who happens to have a membership.
Readers, does the anticipated increase make you think twice about a Costco membership? Or are the benefits too good to give up? Sound off in the comments below!
Quite presumptuous and high & mighty, all caps not withstanding, of you to assume the Executive level membership does not pay back for us.
The executive membership not only pays more cash back, but also offers free installation of tires, a $60 savings by itself. Having three cars, the odds are fair we'll replace tires almost every year on one of them.
The point is, there are alternatives to Costco when they keep raising prices and package sizes. They nick away at the advantages.
Even Discount Tire does a very nice job of competing with Costco, with far more tire choices. So far we have been buying Costco tires because it is slightly easier to maintain them when we regularly visit Costco anyway.
*** Our biggest savings is purchasing tires, we understand a limited offering, at least one type of tire for each car (three of our cars have Costco tires). Prices for tires, balancing and rotation is more than reasonable.
* Prescription / medical supplies offered at great savings
* Gift vouchers for many local attractions, restaurants, etc.. at about 20% savings.
* Other services we have used = travel packages, wooden blinds, and their special car purchasing program.
As for foods: a growing department of organic foods and meats... few other stores have this great of a selection - but they charge top dollar. 'Many' food products - albeit not everything. Just foods area buyers' can negotiate good prices.
Costco has many services and products available. However, Discernment is needed in choosing products and sizes.
A Customer Service and Return Policy second to none.
Costco seems to be doing two irritating things more frequently:
1) Upsizing to an obscene extent - 72 pack AA batteries? Really? (Not long ago were 36 packs.)
2) Getting you hooked on a product and dumping the product.
Costco does not have a Scan & Go app like SAMs so you can completely avoid long check out lines at SAMs. This app alone almost completely equalizes the quality of service differences. Amazing scanner subroutine is fast and forgiving.
If you buy a lot of gas like we do, SAMs has 5% cash back vs 4% for Costco. And their pump prices are virtually identical.
So we already buy most of our staple items and 100% of our gas at SAMs.
Car prices in our market are already competitive and not hard to beat Costco.
We're considering a neighborhood buddy system for Coscto to offset the overpriced membership. (We have the executive.)
Instead of renewing, I jump clubs around. One year sams, one year Costco.
There always are good sign up bonus on both clubs, yet it is more expensive to renew.
Then that fall I converted to executive with cash back. 2 years we ended up with cash back and the others paid a little difference to renew. Even with a $10 increase I still feel it's a fair value, however their prices have gone up across the board this past year and they have dropped some of our favorite products. We did just activate a 90 day BJ's membership for comparison and they have the same products for about a dollar less but the store is 5 minutes further away.
We purchased an automobile with the Costco discount. The savings was unmatched by other dealerships.
I also purchased eyeglasses from Costco. Saved hundreds with my insurance compared to other places.
I find the savings more prevalent on non food items.