Costco is known for keeping prices fair and affordable. The fact that many prices haven’t changed in years has wowed customers, especially the famously cheap hot dogs at the food court.
That’s why the recent Costco membership increase has caused a few customers to question why prices are rising. Let’s get to the bottom of the Costco membership fee increase and what you should expect upon your upcoming renewal, or if you’re looking to grab a new membership.
Related: How Much Is a Costco Membership?
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What Is the Costco Membership Increase?
Effective September 1st, Costco members are now seeing an increase in annual membership prices for the first time in seven years (the last price increase happened back in 2017). This might seem sudden, but memberships are one of the biggest profit-generating areas for Costco.
As costs rise with inflation, Costco is sticking true to its word by keeping prices in the warehouse and online affordable and fair. But in order to offset the money they lose with discounts, they need to make up for it by increasing the membership fees.
Costco hopes the price rise will decrease the amount of non-members entering the building. Costco has noticed those without a membership are taking advantage of the store benefits. Not only will the price increase drop some of those sharers, but help implement changes to the store entrances.
Membership scanning devices will be used at the entrance of local warehouses. Members must scan their physical or digital membership before entry to prove they have their own membership. Ultimately, Costco sets its membership prices in order to be able to offer such great deals and bulk buys. The wholesaler wants to ensure it remains profitable and continues to offer its fan favorites.
What Are the New Membership Prices?
While the Costco membership increase may sound scary, it’s not an exponential price increase. For both Gold Star and Business Memberships, the membership fee is increased by only $5, moving the price from $60 to $65 annually. As for Executive members, the fee increased by $10 and now sits at $130 annually.
For those that have or want an Executive Membership, you still have an abundance of rewards, but the 2% cash back rewards at the end of the year will increase from a max of $1,000 to $1,250 per year.
Check Out: How to Get a Costco Membership
What Should New Members Expect?
But what does this mean for new members wanting to purchase a Costco membership? As the new prices started on September 1st, you’ll have to pay the full $65 or $130 when purchasing a membership, depending on which one you get.
If you were gifted a membership using a shop card with the previous fee amount, you’ll need to pay the difference.
Luckily, for new members, Costco is accommodating. You’ll still have the option to test the membership out, and then cancel and get a refund if you’re not satisfied.
What Should Existing Members Expect?
But what about existing members? Will you need to renew your membership on September 1st due to the Costco membership increase?
Thankfully, no! Costco members will go about their shopping as usual, but when your renewal date comes, you’ll be expected to pay the new membership fees according to your membership type.
Conclusion
Several other wholesale clubs have hiked up their membership fees. For example, Sam’s Club did an increase in 2022. Increased prices will always happen, even with stores like Costco keeping prices low.
That being said, a price increase of $5 or $10 will not break the bank. As a result, a Costco membership is still worthwhile for many because you can save tens to hundreds of dollars in the long run.
Read More: What Are the Main Costco Benefits That Come with a Membership?
What are your thoughts on Costco raising their prices? Are you concerned about the increase or still happy with shopping at Costco? Let us know in the comments your thoughts.
And for more inside information on Costco, keep checking back at Costco97 for everything there is to know about the wholesale club. Be sure to stay in touch with the upcoming coupons, listed in our Costco Coupon Book (updated monthly).