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Is a Costco Membership Worth It?

Costco offers four different membership plans promising the best deals and the most savings. But before you sign up, consider how much bulk shopping you do and whether you'll be spending more on transportation just to get to a Costco near you.

You know you’re an adult when you’re contemplating signing up for a Costco membership.

Originally the land of large families and shop owners loading up their pantries and shelves, Costco is now attractive to just about anyone who wants to stock up and save.

But what exactly are you signing up for? And how do you know whether having a Costco membership is beneficial for you and your family?

If you’re thinking about getting a membership at Costco, we’ll walk you through all the benefits they offer, to hopefully make your decision easier.

Is a Costco Membership Worth It?

Costco is one of the largest wholesale corporations in the world and promises to bring its members the best deals on the market.

The first (and most important) key to knowing if a Costco membership is worth it is if you are able to purchase groceries in bulk. Sure, milk might be a dollar a gallon cheaper at Costco but if you can’t use two gallons before it spoils, then you didn’t really save any money.

That’s why Costco is best for households with multiple people, since they’re more likely to be able to use groceries in bulk.

Also, since you get the most bang for your buck with Costco when you buy a lot of your groceries there, it helps to have a Costco close to you. To really make the most of your membership, you’ll want to be doing your regular shopping there — perhaps even weekly or biweekly.

If you have to drive an hour each way, you likely won’t be making regular trips — and with the price of gas these days, you’ll just be burning any dollars that you’re saving on fuel.

TL;DR: If you can’t use bulk groceries or you live too far away to make regular trips, a Costco membership probably isn’t right for you.

Costco Membership Costs

But if a Costco membership is worthwhile for you, then you have four membership levels to choose from: two different personal memberships and two business memberships.

To sign up, applicants must be at least 18 years of age and are required to present some sort of photo identification, such as a driver’s license, to the Costco membership counter.

Costco Gold Star Membership Card

The Costco Gold Star Membership is one of the two personal memberships available. This membership is $60 a year plus sales tax and offers the following benefits:

  • The ability to shop at all Costco locations worldwide and online.
  • Receive two membership cards — one for you and one for someone else in your household to use under the same account.
  • 100% satisfaction guarantee. Costco will refund and cancel your membership at any time if you are not satisfied with your overall experience

Costco Executive Membership Card

The Executive Membership is the second personal membership option. This card is $120 per year plus tax and offers all the benefits of Gold Star Membership, as well as:

  • Up to 2% annual cash back reward (to a maximum of $1,000) on eligible Costco purchases. The reward must be redeemed in-person (i.e., not on Costco.com) and excludes alcohol, tobacco, gas, travel, and auto services.
  • Additional discounts and perks on many of the services Costco offers, such as bottled water delivery, identity theft protection, and home and auto insurance.
  • Extra benefits on select Costco Travel products.
  • A monthly subscription to “Costco Connection” magazine.

Costco Business Membership Card

The Costco Business Membership is one of the two business memberships available. The Business Membership Card is $60 a year plus sales tax and offers the following benefits:

  • The ability to shop at all Costco warehouses worldwide and online.
  • Receive two membership cards — one for you and one for someone in your household to use under the account that was created.
  • Add affiliates to your Business Membership for $60 per person.
  • The ability to make purchases for resale (alcohol is prohibited in some states).
  • 100% satisfaction guarantee. Costco will refund and cancel your membership at any time if you are dissatisfied.

Costco Business Executive Membership Card

The Costco Business Executive membership is the second business membership available. This membership is $120 a year plus sales tax and includes all the benefits of the regular Business Membership plus:

  • Up to 2% annual cash back reward (to a maximum of $1,000) on eligible Costco purchases. Like with the personal version, your reward must be redeemed in-person and can’t be used for alcohol, tobacco, gas, travel, and auto services.
  • Additional discounts and perks on many of the business services Costco offers, such as bottled water delivery, payment processing, and printing.
  • Extra benefits on select Costco Travel products.
  • A monthly subscription to “Costco Connection” magazine.

Pros & Cons of a Costco Membership

There are pros and cons to everything in life, and a Costco membership is no different. There are many great benefits to getting a Costco membership, however, there are also some things you should consider before making your final decision.

Pros of Purchasing a Costco Membership:

  • Ability to purchase larger quantities of items at a discounted rate.
  • Ability to purchase gas for much less than at most other gas stations.
  • Wide range of products to shop for.

Cons of Purchasing a Costco Membership:

  • You’ll have to pay yearly for a membership.
  • Might be a farther drive than your local grocery store.
  • You’ll waste products if you can’t fully use a bulk purchase.

How to Make the Most Out of Your Membership

One of the most important ways to get the most out of your Costco membership is to focus on what you actually need. It’s easy to get distracted by good deals or new products that seem to magically end up in your cart.

Instead, set up a strategic shopping plan to ensure that everything you buy will be used.

Another way to make the most out of your membership is to buy Costco’s Kirkland Signature brand items and gas. Many Kirkland items are manufactured by name brands just for Costco — and oftentimes sold at a lower cost.

Can you Shop at Costco Without a Membership?

Although you technically cannot shop at Costco without a membership, there are some ways to get around this.

If you receive a Costco Shop Card (their branded gift card), you are able to use it in the store until the balance is gone, even if you aren’t a member.

In certain states, you are also able to purchase alcohol in Costco stores without a membership, so long as you have a valid ID.

Other things that non-members can do are get eye exams, use the pharmacy, and purchase certain items online.

Unfortunately, Costco does not offer discounted or free trial memberships to those who are wondering what their shopping experience might be like at Costco.

That’s because the membership fees are what enable Costco to offer their discounted prices. The fees mean Costco can operate their business margins much lower than many other competing retailers.

Can You Split Your Costco Membership?

Costco membership cards are non-transferable. However, there are several ways to give access to your friends and family members.

Anytime you visit Costco, you can bring up to two guests per visit. These members are allowed in the warehouse with you but are not allowed to purchase items unless they also have an active membership with Costco.

If you are interested in a Costco membership and know someone else who might be too, another option might be to split the membership fee between the both of you. All the memberships offer two physical copies of each card, so you’d each be able to shop at the store whenever convenient for you.

Costco vs. the Competition

Costco’s biggest warehouse competitors are Sam’s Club and BJ’s Wholesale.

All three stores pride themselves on getting their members the best prices on bulk items. Each membership varies slightly, as you can see below.

Costco Sam’s Club BJ’s
Basic Membership Cost $60 $45 $55
Premium Membership Cost $120 $100 $110
Locations 828 total warehouses 600 total warehouses 215 total warehouses
Featured Store Brands Kirkland Signature Member’s Mark Berkley Jensen and Wellsley Farms
Cash Back Rewards Executive members can earn 2% back on purchases Plus members can earn 2% back on purchases Perks Rewards members can earn 2% back on purchases
Refunds 100% satisfaction guarantee 100% satisfaction guarantee 100% satisfaction guarantee
Credit Cards Costco Visa Card Sam’s Club Mastercard BJ’s Mastercard

Read more: The Best Store Credit Cards

The Bottom Line

Deciding whether or not a Costco membership is right for you depends on your specific situation.

If your local Costco is nearby and you can use groceries in bulk, then a Costco membership is likely worth it. Otherwise, you may be best to stick with your local grocery store.

Featured image: Andy.LIU/Shutterstock.com

About the author

Abby Sterling

Abby Sterling

Abby is writer and media professional who has contributed to Money Under 30. She holds a bachelor’s degree in communications from the University of Alabama.

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