I have been a Costco member for over 18 years and I can say that I have definitely gotten a lot out of it since I joined. I have also been shopping at Costco more frequently in recent years as my kids have gotten older and their appetites have grown.
I could easily make a list of the things I love about Costco, from the delicious oversized bakery muffins to the $9.99 food court pizzas (it’s not the best pizza around, but you can’t beat the price). But I have a theory that the Costco shopping experience is only going to get better in the coming months. And there’s a reason for that.
Costco fees are rising
In case you haven’t heard, starting September 1, the cost of a Costco membership is going up. For a basic membership (Gold Star), you’ll pay $65 per year instead of $60, and an executive membership will cost you $130 per year instead of $120.
However, it’s hard to get too upset about these increases for several reasons. First, this fee increase is Costco’s first since 2017.
Chances are, most of your other bills have gone up every year for the past seven years, so it’s not unreasonable for Costco to raise its membership fees after so long.
Plus, Costco’s fee increases are pretty small when broken down on a monthly basis. For a basic membership, expect to pay $0.42 more. For an executive membership, you’ll pay $0.83 more. Put another way, the higher price of a basic membership will cost you one rotisserie chicken per year, while you’ll have to give up two to cover the extra cost of an executive membership.
But I’m not at all upset that Costco is raising its prices even if it means I have to pay more. In fact, I’m quite happy about it.
Higher fees could be great for Costco members
Costco uses its membership fees to cover its costs. These fees are what allow Costco to offer such deep discounts on everything from groceries to cleaning supplies to clothing. So there’s a good chance that once these fee increases go into effect, Costco will not only be able to expand its assortment but also offer great prices on any new items that hit the shelves.
And it’s not just inventory that could improve. Costco could also decide to use its increased revenue from membership fees to provide new services.
Right now, you can buy new tires at Costco. But imagine if you could drop off your car for an oil change while you go grocery shopping, load up your cart, and enjoy a delicious lunch at the food court?
Or what if Costco introduced a custom printing service? It could solve your annual Christmas gift dilemma or be your go-to source for your kids’ sports uniforms and more. The possibilities are truly endless.
That’s why I predict that the Costco shopping experience will be even better a year from now than it is today. Costco has long been a customer-focused company that prides itself on offering good value for money – so much so that if a particular item isn’t cheap enough, it simply won’t carry it. So once these higher fees are implemented, you can bet that Costco will share the profits in some form.
That doesn’t mean you should jump for joy when you start paying more at Costco in September. But don’t let that deter you. You might find that paying $5 or $10 more per year on your credit card will result in a significantly better shopping experience on top of the fantastic shopping experience you already enjoy today.
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