Costco Membership Fees Sees Price Hike For The First Time In 7 Years
Price hikes seem to be the norm these days, and now Costco is joining the trend. The company announced yesterday (July 10) that it will raise its annual membership fee for the first time in seven years. Starting soon, its basic membership fee will increase from $60 to $65.
According to the company, the 8.3% cost increase will take place on September 1. If you’re wondering about the cost of a premium membership, it rises from $120 to $130. Costco also said the maximum annual 2% reward for its executive membership will rise to $1,250 from $1,000.
Will the Costco membership price increase affect the hotdog combo special?
Despite the upcoming hike in membership fees, Costco’s chief financial officer reassured in May that the retailer has no plans to alter its beloved $1.50 hot dog combo special, which has been a staple since 1985.
Earlier this year, Costco cracked down on who they allow t use its food court to ensure only members can get the discounted wiener-and-soda deal.
The pricing change affects approximately 52 million memberships. While Costco has historically increased membership costs every five years, company executives had held off this time as shoppers struggled with high inflation.
On the other hand, warehouse club rival Sam’s Club raised its basic annual fee to $50 and its premium to $110 in 2022, marking the first increase in nine years.
People react to the price hike
The price hike news has brought about mixed reviews. Some people took to social media to share their thoughts. “No one will bat an eye, I make back the membership fees on gas and hotdogs alone after a few months,” one person shared. Another person said, “If they would just take the membership fee out of the 2% exec membership bonus, that would be more convenient.”
Someone explained how membership fees seem to work. “The fact that companies like Costco, Amazon, and Netflix can do this shows how much consumers are appreciating these flat payment models over the nickel-and-diming that comes with extra and hidden service fees as well as the explosion of tipping culture,” they said.
Costco currently operates 882 warehouses, including 609 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, seven in China, four in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.
