I’ve had a Costco membership for more than 18 years now, and I can say that I’ve definitely gotten terrific value out of it since signing up. I’ve also become a more frequent Costco shopper in recent years as my kids have gotten older and their appetites have grown.
I could easily fire off a list of the things I love about Costco, from the deliciously oversized bakery muffins to the $9.99 food court pizzas (it’s not the best pizza in the area, but the price can’t be beat). But I have a theory that in the coming months, the Costco shopping experience is only going to improve. And there’s a reason for that.
Costco fees are going up
In case you haven’t heard, starting Sept. 1, the cost of being a Costco member is increasing. You’ll pay $65 a year for a basic (Gold Star) membership instead of $60, and an Executive membership will cost you $130 a year instead of $120.
It’s hard to get too upset about these increases for a couple of reasons, though. First, this fee hike is Costco’s first one since 2017.
Chances are, most of your other bills have gone up every year over the past seven. So it’s not unreasonable for Costco to raise its membership costs after such a long stretch.
Also, Costco’s fee hikes are pretty minimal when you break them down on a monthly basis. For a basic membership, you’re looking at $0.42 extra. For an Executive membership, you’re paying $0.83 more. To put it 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 added cost of an Executive membership.
But I’m not at all upset that Costco is raising its prices, even though it means paying more. In fact, I’m kind of stoked about it.
Higher fees could be great for Costco members
Costco uses its membership fee revenue to offset its costs. It’s those fees that allow Costco to offer up such deep savings on everything from groceries to cleaning supplies to clothing. So there’s a good chance that once those fee hikes take effect, Costco will be able to not only increase its selection of inventory, but offer up outstanding prices on any new items that hit its shelves.
And it’s not just inventory that might improve. Costco might also decide to use its higher membership fee revenue to offer new services.
Right now, you can buy new tires at Costco. But imagine being able to drop off your car for an oil change while you hit the store, load up your cart, and enjoy a tasty lunch at the food court?
Or, what if Costco were to introduce a custom printing service? It could solve your yearly holiday gift dilemma or be your go-to source for your kids’ sports team uniforms and more. The possibilities are really endless.
That’s why I predict that in a year from now, the Costco shopping experience is going to be even better than it is today. Costco has long been a customer-focused business that prides itself on offering great value — so much so that if it can’t offer up a given item at a low enough price point, it just won’t carry it. So once those higher fees start rolling in, you can bet that Costco’s going to share the wealth in some shape or form.
This isn’t to say that you have to jump for joy over paying more for Costco beginning in September. But try not to let it bother you. You may find that a credit card charge that’s higher by $5 or $10 per year leads to a much improved shopping experience on top of the already fantastic experience you’re enjoying today.
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