The Latest on Costco’s Membership Fee Increase

Costco, the popular warehouse store, made headlines this week with its announcement of a membership fee increase for the first time in seven years. The Gold Star membership will see a $5 increase to $65 annually, while the Executive membership will go up by $10 to $130. The changes will take effect on September 1, bringing Costco’s fees higher than its competitors, BJ’s and Sam’s Club.

Comparing Membership Fees

When the new fees come into effect, Costco’s Gold Star and Executive memberships will be higher than those of Sam’s Club and BJ’s. Despite the increase, Costco offers a range of benefits that make the membership worthwhile for many customers.

Costco’s Executive members will see an increase in their cash-back rewards, with a maximum annual 2% reward going up by $250. This means that Executive members can now receive up to $1,250 cash back annually on Costco and Costco Travel purchases. In comparison, Sam’s Club offers a 2% cash-back reward for its “Plus” membership, with a maximum annual cash back of $500 on in-club purchases. BJ’s Warehouse Club’s “The Club+” membership also provides 2% cash back, with a cap at $500 on in-club purchases.

Gasoline Prices and Rewards

All three warehouse chains—Costco, Sam’s Club, and BJ’s—offer special gasoline prices at their gas stations for members. Costco members who purchase gas at Costco and pay with the Costco Anywhere Visa Card can earn 4% cash back rewards. Sam’s Club members who buy gas with a Sam’s Club Mastercard can receive 5% cash back. BJ’s “Club+” members can get 5 cents off every gallon when they fill up at one of BJ’s gas stations.

Additional Services and Benefits

In addition to cash-back rewards and gasoline discounts, Costco offers various services for its members, including pet insurance, auto services, and water delivery. Higher-tier members may receive additional discounts on these services. Sam’s Club also provides services for its higher-tier members, such as 20% off a pair of eyeglasses for Plus members, free shipping on contacts, and savings at their pharmacy.

Overall, despite the increase in membership fees, Costco continues to offer a range of benefits and services that make it a popular choice for many consumers. The cash-back rewards, gasoline discounts, and additional services provided by the warehouse store set it apart from its competitors and make the membership fee increase worthwhile for many loyal customers.

For more information on Costco’s membership fee increase and how it compares to Sam’s Club and BJ’s, you can read the original article on Investopedia.