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Best/worst deals at Costco

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AUTHOR: Kyle Mcintosh on 7/14/2024

This past week, Costco announced that it would raise its base membership fee from $60 to $65 effective September 1. Executive members will see their fees increase from $120 to $130. Prior to this announcement, fees had not changed since 2017.

In order to justify the cost of the membership, members need to extract value from Costco in excess of the fee they pay. What are your tips for making the most of your membership? Or what do you avoid that’s better to purchase somewhere else?

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Kevin Madden
3 months ago

Frugal HumbleDollar readers will appreciate this – Costco price guarantees for 30 days, so if they lower the price within 30 days of your purchase, you can get a refund at the Customer Service counter. When the monthly flier arrives, I leaf through it looking for items I typically purchase, then check my receipts for actual purchases within the past 30 days. My refunds average about $10 monthly.

Don Southworth
3 months ago

I’ve loved Costco for a long time and, thanks to being an Executive member with their credit card, I get more money back every year than I pay for my membership.

I worked for them part-time during one Christmas season when I was taking care of my dad. Two days of interviews for a job in the deli and great training as well. A company that walks their talk.

Some tips…

  1. Buy everything of value you can at Costco. Rent cars, take trips, buy cars, insurance, tires, even a coffin. Once we bought a house through them but not sure they still do it.
  2. Believe their return policy. We once returned a treadmill we had for more than a year that broke down and they took it back without question.
  3. Shop more than price. Usually their quality is top notch and their warranties (especially when using their credit card) are the best you can find.
  4. For fun, we always visit them when we travel too. Not only can you find great local deals (Maui, Paris) but the culture leads to new experiences. Like tasting wine and other spirits at the Paris Costco.
  5. Enjoy the shopping experience on line and in the stores. I once had someone join a congregation I was serving because I talked about my spiritual practice of going to Costco once a week.
A Foster
3 months ago

I’ve never found a bad deal. I used to think Costco was just a place to buy items in bulk. I was so wrong…although we originally joined to get my favorite coffee at a steep discount. It’s cheaper at Costco than buying direct from the brand’s website. Also, we get all of our glasses at Costco. My husband buys most of his Eddie Bauer shorts and pants there. Everything we buy is cheaper (and often better qualify) at Costco…bed sheets, comforters, contact lens solution, vitamins, dog food, cleaning supplies, gift cards to your favorite restaurants for 20-30% less than face value, etc. We even bought a generator for camping. Not to mention the gas. We find so much at Costco that we upgraded to the executive membership, which pays for itself every year in cash back rewards. Before I buy anything, I always check Costco first.

Tim Mueller
3 months ago

I buy all my tires at Costco. They come with free balancing, tire rotation, and road hazard warranty. I have snow and summer tires all on separate rims and I like to have them balanced before each season. I do my own rotations and the balancing alone pays for the membership.

Cheryl Low
3 months ago

We split our shopping at Costco and Amazon.

At Costco, we purchase gas and get 4% cash back on their visa. We don’t buy any processed food or bakery. We buy produce (kale salad, blueberries, blackberries, apples, strawberries, bananas), meat, paper products, nuts. We freeze the blueberries and blackberries. And I vacuum seal the meat in dinner-size portions and freeze.

At Amazon, we use Subscribe and Save (monthly) for many of our household items. If you purchase 5 or more items, you can get up to a 15% discount. (Some items, like catfood, are only a 5% discount.) If you charge the monthly purchase on the Amazon credit card, you get an additional 5% off the discounted amount. We have a Prime membership. Once a month, I do need to review the S&S order to remove or add items.

Amazon has their Prime Days event in July, so we’ll identify a few items (over the prior 1 or 2 months) we’d like to buy and put them in the ‘save for later’ cart to see if they go on sale.

Dominique Simonian
3 months ago
Reply to  Cheryl Low

We do the same! The 5% Amazon credit card discount also applies to Whole Foods and Whole Foods frequently has additional discounts on items for Prime members.

G W
3 months ago

Full disclosure: I’m not only a Costco member, I’m a Costco shareholder as well.

Based on a sample size of one location near us and a few trips over many years with our adult kids at locations in CA, VA, TN and KY as they moved out of the household or around the country as a member of the military:

My wife bought a basic membership maybe 10 years ago. I couldn’t understand why but, OK.I went with her to our local warehouse a few times in the early years and became mildly interested. Tunnel vision focused on food and supplies.First major purchase was a set of tires. Good value and service.Wife eventually upgraded to the Executive card and Costco Visa card. Double why?Learned, eventually, to stick to your shopping list as much as possible.Eventually, bought a large screen TV online. Customer service and delivery process was outstanding in every way.Years later, same for the recent purchase of a washing machine.Over the years, I’ve ended up doing the majority of the grocery and supplies shopping. Initially, I enjoyed finding great deals as the main priority but over time, convenience and overall time savings became equally important. I too, like to GIGO – get in, get out.

Overall, here’s what I’ve experienced and learned:

It’s not a big deal to go “off-road” from your list to try new things. Just be sensible about the amount you’re trying. Yes, the old adage of not shopping for food when you’re hungry still applies. We’ve discovered many new, enjoyable food items that have become regular purchases through the years.I just bought my second pair of hearing aids from Costco. My hearing continues to degrade and the previous pair was 4 years old. Newer technology helps. They are not ENT doctors but within the parameters of their offerings and scope of work, they are far, far superior to any other hearing aid shop in regards to professionalism. I’ve saved thousands over the “rip-off shops” that pushed what’s be$t for them, not me. Follow up care is great as well.As others have mentioned, not everything is the best possible deal at any given time but how many stores do you want to shop at to save a buck? Sales events, however, can offer some really good deals. Indeed, it would take us a very long time to get through 20 lbs. of basmati rice so we buy and share with our kids that are still local (and vice-versa). Pretty storage stable food. Same can be said about many non-perishable items.Perhaps the most important – I have always experienced the best in customer service from every and ANY team member, even if what I’m seeking isn’t necessarily in their current work area. I’d go so far as to say they are a benchmark company in this regard. Far too rare these days. Team members I’ve spoken with seem to enjoy working at Costco. I find that often leads to a better customer experience overall.It’s not hard for us to easily exceed membership costs in rebates and rewards, even at the executive level. Some of this has to do with the fact that Costco offers things that I now need, like hearing aids, that I did not need years ago. Otherwise, even tire purchases can save you decent money. So in some cases, it’s savings been due to switching away from other traditional/habitual sources for us when/if it makes sense.What I wish for:

While there are small windows of time to beat the rush, in general, every day seems like college football game day with the Costco faithful pouring in and out, except it’s all day long! Managers seem to do a decent job in adding cashiers as needed when lines build up. Our store needs more parking areas and perhaps, a second area for entry and exit. Overall, I sure wish that the store was larger for many reasons as the surrounding areas continue to grow in population. Buildings/additions and parking spaces are not cheap so there’s always a balance to be found. I just hope they stay ahead of the curve.A more realistic returns policy. While Costco touts customer satisfaction as a main reason for their crazy-generous policy, they really need to tighten this area up. You may have seen the articles now and then about people returning items years past their warranty period and in very poor condition. I’ve seen it for myself as well. Returning a seven year old freezer from a one-person venison processor with blood all over it? Who knows, perhaps this policy makes life easier overall for staff, etc. and keeps things moving.Beware:
Any financial firm that publishes articles regarding the cost of Costco’s hot dog meal. Juvenile, filler journalism, at kindest. Heaven forbid they raise the price to $2 or shrink the portions!Same for the upcoming membership price increases. Geez, you’d think the world was ending. First, in some cases, you can renew early (5 months?) and avoid one round of the higher cost. This is not an immediate flood of added income for Costco starting September 1. Second, in a worst case scenario, buy perhaps one less item for the YEAR from the proverbial “sin-food” aisles and you’ve got the increase covered. Or buy more of what you genuinely need and will use at Costco versus another store if it makes $ sense to do so.Finally, thank you to other contributors here for discussing other possible savings opportunities we’ve yet to explore, such as travel and car rentals.

Best to all!

Last edited 3 months ago by G W
Boomerst3
3 months ago

I suggest you get the membership that gives you cash back, which usually covers the cost of the membership. They give a check for the amount, based on what you spend. Try not to go on weekends if possible. The free food hoarders are out in full force. We get our usual vegetables but we try to buy other things when they are marked down. For example, mayonnaise and tuna fish are marked down regularly and you can buy multiples of them. Dunkin coffee gets marked down a lot. These things last a while, so you can buy when on sale. We use our freezer because the quantities are large. We get their thin chicken breast and freeze it, and then we use portions of it. We also get our gas there and it’s much cheaper than other gas stations.

Sanjib Saha
3 months ago

Costco has been our favorite store for years. We buy most of our household items here, including clothes, electronics, appliances. We have used the travel services quite a bit. The choices are usually limited but if there is something you like, it’d be hard to find the same deal and service elsewhere. The hearing aid center is also great – both my mom and I were very happy with our respective sets.

Over time, I’ve developed a bias towards Costco in thinking that if something that I needed was available at Costco, I didn’t need to look elsewhere. Occasionally, this complacency hasn’t served me well and I skipped adequate research a few large purchases before buying them from Costco. Our Air Conditioning system was installed through Costco, and it was quite expensive. I realized later that there were other options to suit our needs at a much reasonable price. We are also careful about buying fresh flowers, vegetables and fruits. We carefully inspect if they are really fresh or not, and still find ourselves picking up stale or rotten stuff. Over time, we’ve started to get some of the vegs/fruits from elsewhere.

I don’t mind the membership price increase as the “real” (inflation-adjusted) price of the membership is in the decline.

OldITGuy
3 months ago
Reply to  Sanjib Saha

I agree. Many things are hard to beat at Costco, especially when you consider their easy return and warranty process. On the other hand, when I needed a new A/C unit I ended up buying a quality unit with a better warranty for less than half of the price quoted by the vendor in Costco. Nothings perfect.

Laura E. Kelly
3 months ago

I’m very interested in this thread. A friend had been telling me how great Costco was, extolling the affordable hearing aids among other things, and then one day last March she forwarded me a membership discount offer from StackSocial where you paid $60 for a Costco membership and then got a $40 digital Costco shopping card. The fee seemed like a deal and I signed up, even though the nearest store to my house is 30 minutes away.

Pro tip: do not make your first trip to the Costco in Yonkers, NY, the Saturday afternoon before Mother’s Day. Cars jostled for faraway parking spots as crowds of families swarmed into this vast warehouse store. Pushing my cart through the teeming aisles, overwhelmed by towering shelves of familiar-looking brands in gigantic sizes, I witnessed two separate full-on marital meltdowns, one over which electric toothbrush of the many on display was the best.

While people around me shopped in a frenzy, I threw enough items into my cart to cover my digital coupon and then got the hell out of there (which took about 30 minutes due to the long lines at the many cashiers and lines also at the exit doors as guys scanned everyone’s receipts before you could leave the store). I reached my distant car with one bag of stuff and my nerves jangling. 

As a souvenir of that experience, I have a gallon-sized jar of Calamata olives sitting on my kitchen counter, ready for…?

Now with the shopping tips from this forum, I will try to make a second foray, this time to another Costco, also 30 minutes away, which my friend tells me is much more civilized, especially if I avoid the weekends. Apparently that one sells gas, wine, hearing aids, and presumably giant jars of olives. I don’t know about cars.

Boomerst3
3 months ago
Reply to  Laura E. Kelly

If you have to go on a weekend, either go first thing in the morning, or later in the afternoon

Mark Eckman
3 months ago

I have the basic membership since I don’t see substantial benefits from the executive plan. I find the optical and pharmacy costs quite attractive and the gasoline is the simplest way to save money with the membership.

Boomerst3
3 months ago
Reply to  Mark Eckman

If you go often enough, you will get a check that more than covers the cost of the executive membership

MikeinLA
3 months ago

I’m a huge fan of Costco, but I never use their credit card. There’s no reason to wait a whole year for the rebate. I strongly prefer to use another Visa card at checkout that earns me immediate rewards or points I can transfer.

Their wine / beer / liquor prices are generally half of retail. It’s frustrating if you favor a specific brand that comes in or out stock, but can be a pleasant surprise if you find something you like.

Jacob Melamed
3 months ago

I routinely book our vacation car rentals through Costco’s travel service. Costco consistently offers the best price on car rentals. The cost of my Executive membership is easily covered by the money saved on car rentals.

Patrick Brennan
3 months ago
Reply to  Jacob Melamed

Also, you can add a driver for free. That’s a huge plus for me.

Kenneth Tobin
3 months ago

Used them for car rentals at a great saving

Kristine Hayes
3 months ago

I’m a huge Costco fan. I’m guessing that at least 50-60% of our grocery budget is spent at Costco. I will also admit I’m a fan of their partnership with Instacart (“Costco Same Day”). I never thought I would be the kind of person who paid to have their groceries delivered, but I love it! I can go online, fill out an order in about five minutes and less than two hours later have everything dropped off at our front door.

As much as I love Costco, I despise their ‘free sample’ policy. I want to go in, grab the 15-20 regular items we always get and then get out. As. Fast. As. Possible.

Inevitably, if free samples of food are being given out, there will be a traffic jam at the end of every aisle. I cannot believe how long people will stand at one of those free sample stations waiting to get a nugget of chicken or a 2-inch long burrito bite.

If I were running Costco (and maybe someday I will), I would put all the sample stations in their own building–along with the food court. People who want to spend their day eating free samples would be welcome to do so while everyone else could actually get down the aisles of the main store without having to dodge all the mini burrito and chicken nugget connoisseurs.

mytimetotravel
3 months ago

Highly recommended for hearing aids. Their pharmacy can be cheaper than others, and you don’t have to be a member to use it.

mjflack
3 months ago

If you can live close enough to Costco to buy your gas there, then your savings will almost definitely cover the cost of the base ($60) fee. Buying most things at Costco will save you money, though most of the time it comes down to volume, as often 20 lbs. of rice is just a little more than I need. Also I always sample most of the food that is offered for sampling and therefore save $1.50 by not eating the hot dog. You can get a better deal for wine at Trader Joe’s.

kt2062
3 months ago

I used to get all my gas at Costco which helped increase my rebate. But now I have an Electric Vehicle. Their website says the gas rebate includes both gas and EV but I don’t believe they have EV chargers.

Wilbur
3 months ago
Reply to  kt2062

Gas currently doesn’t qualify for the 2% Executive Membership rewards. The Costco Visa gives 4% cash back on gas at Costco and elsewhere.

Kevin Madden
3 months ago

We are very happy with our Costco membership but only since one was built less than a mile away. We consistently go there for gas, paper products, pharmacy and various food items. We have also purchased tires, furniture, electronics, beer, household items, etc. We upgraded to Executive Membership this past year and our annual coupon was more than the fee. Love the experience of shopping there – nice workers, clean, bright, easy parking. It helps we can go on workdays due to being retired.

Jonathan Clements
Admin
3 months ago

I’d be curious to know whether anyone has tried Costco’s car-buying service?

https://www.costcoauto.com/

D.J.
3 months ago

I’d give it a thumbs up, too. It has been several years since my wife and I used Costco to buy a car (we typically email dealerships our specs and let them make their best offers). When we did use Costco, it was at a time when Honda dealers just weren’t dealing. Everything was marked up and the sales people ignored our attempts at haggling. Enter the Costco program and we got the deal we wanted. The dealer they sent us to, though, wasn’t too happy about the price we got and treated us less than enthusiastically but we did fine: We drove that Accord for over a decade and it was still running well when we sold it after almost 200,000 miles. 

Rick Connor
3 months ago

I spoke to my brother-in-law and he used Costco several times in the early 200s to purchase Toyotas. He said there was no sales pressure, and he felt he got a fair deal. The downside was there were limited dealers in the program. The dealer they used initially left the program and the chose to stay with them, rather than the Costco program.

Rick Connor
3 months ago

I believe my brother in law has bought several cars through Costco and been satisfied.

Jeff Bond
3 months ago

My wife and I save base membership fee in savings on gasoline alone. We do not typically buy in bulk, but Costco offers fruits, veggies, and cakes at good prices when we have parties.

Dan Smith
3 months ago

I like the extended warranty and liberal return policy on many electronic and appliance purchases. Also the 3% rebate on restaurant food using the Costco Citi credit card, as well as 4% rebate at the Costco gas station.
We have saved a boat load at the pharmacy and optical departments as well. Sadly I’m going to eventually need to try their hearing aids.

Last edited 3 months ago by Dan Smith
ostrichtacossaturn7593
3 months ago

Costco told us if our annual rebate provided by the more costly Executive membership did not exceed the additional fee for the Executive membership, they would refund the difference and allow us to downgrade our membership to the lower amount. So far, our annual rebate has not only paid for the marginal cost of the Executive membership over Basic, (like Nuke Ken) it always exceeded the total cost of the Executive membership.

baldscreen
3 months ago

We just have a basic membership. I am not sure if we buy enough to “break even” unless we buy something big like tires. We ask ourselves every year do we want to keep it and so far we have. There are certain things we like from there and wine is a good price. And we order things to send to our elderly, out of town parents who don’t have a Costco. Chris

Nuke Ken
3 months ago

We have the Executive membership and typically get a yearly coupon in excess of the fee. The membership is thus effectively free and any savings beyond that is gravy.

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