On September 1, Costco raised the annual fee for its basic membership from $60 to $65, and for its executive membership from $120 to $130. On a month-to-month basis, these increases aren’t significant, but they may encourage some members to consider canceling their memberships and instead find other ways to shop at Costco.
You should know that you can shop at Costco without paying for a membership. First, anyone can order from Costco.com. Also, Costco allows paying members to bring guests to its Warehouse Club stores. So, if you have a friend, neighbor, or family member who can shop with you, you can save the $65 or $130 that a membership would cost.
But while you can avoid paying Costco membership dues, there are some benefits to doing so. Here are some reasons why:
1. Online ordering is expensive
You can order from Costco.com without being a member, but it will cost you more: Costco charges a 5% surcharge on orders for non-members. According to Costco, that’s because “our ability to offer branded products at low prices is in large part due to our membership program, which is designed to reward our members’ loyalty.”
If you only order occasionally from Costco.com, you might actually save money by not having to pay the membership fee, but if you order $2,000 worth of Costco products per year, the extra fee will total $100 – $35 more than the basic membership fee.
2. Access to Costco’s entire inventory
While much of Costco’s inventory is available for online purchase by non-members, some items are designated as members-only, meaning you cannot purchase those items unless you pay a membership fee.
Member-only items are often popular brands that you can buy for a lot more outside of Costco, and in some cases, the discount on one item can cover the cost of your annual membership fee.
Costco uses membership fees to offset its operating costs. A big reason Costco can offer such affordable products and services is because it charges each member $65 or $130 per year, so it doesn’t have to charge as much per item.
By registering and paying your admission fee, you’re helping to improve the store’s products, services and prices — and in the long run, you and other shoppers will benefit greatly.
Costco has recently been cracking down on non-members by installing ID scanners at store entrances and restricting food court access to members only, but you can still enter the store with someone. And non-members can easily shop online. But for all the reasons above, it might be worth shelling out the $65 or $130 to join Costco. You might find it leads to big savings and a better experience.
