Costco just dropped two pretty big changes that have a lotta people talking. First, they’re bumping up membership prices (because of course they are), and second, they’re now making everyone scan their membership card just to get through the door. If you’re a regular Costco shopper, you’re definitely gonna feel it — maybe in your wallet, maybe just in the extra hassle. Here’s what’s going on, why they’re doing it, and how it might mess with your next stock-up trip.

Membership Price Increase

Why the Increase?

Costco has announced a membership price increase, a move that is not unprecedented but always noteworthy.

The last time Costco raised its membership fees was in 2017, and the company typically adjusts prices every few years to keep up with inflation and operational costs.

The New Prices

Gold Star and Business Memberships: The annual fee for Gold Star (individual) and Business memberships will rise from $60 to $65.

Executive Memberships: The annual fee for Executive memberships, which offer additional benefits and a 2% reward on eligible purchases, will increase from $120 to $130.

PRO TIP: DON’T WANT TO JOIN COSTCO?

Did you know that you shop on Costco.com WITHOUT being a member? True enough.

The only caveat is that you’ll have to pay a 5% surcharge. But if you only need to buy stuff from Costco on rare occasions it’s a smart way to avoid the annual membership fee.

Impact on Members

For many loyal Costco shoppers, the slight increase in membership fees might not be a dealbreaker given the value and savings they receive from shopping at Costco.

However, it’s essential to consider whether the benefits you gain from your membership justify the increased cost.

The Executive membership, for instance, still provides significant value if your annual spending at Costco is substantial enough to offset the higher fee with the 2% reward.

See Also: 10 Ridiculously Easy Ways to Save Money at Costco

Justifying the Cost

Costco justifies the price hike by pointing to several factors:

Quality of Products: Costco is known for offering high-quality products, including its private-label brand, Kirkland Signature, which consistently receives praise for quality and value.

Cost Savings: Even with higher membership fees, the savings on bulk purchases, fuel, pharmacy, and other services can still outweigh the cost.

Member Services: Costco’s throwing in way more stuff now besides just the usual shopping. You can book travel, buy a car, even get help fixing up your house — it’s all part of the membership.

New Entry Policy: Membership Card Scanning

On top of jacking up the membership fees, Costco’s now making everybody scan their card just to get in the door.

They say it’s to tighten up security and make the shopping experience smoother — whatever that means. I guess enough non-members were sneaking in and trying to mooch off the deals that they had to crack down?

See Also: Ever Wonder Why Costco Checks Your Receipt When Exiting?

RATIONALIZING THE FEE INCREASE

As we continue to feel the pinch of inflation, keep in mind that Costco’s supplier’s costs continue to rise as well.

To fight this, Costco will get more of your money one way or another. Either through an annual fee increase or raising prices.

I’d rather pay a little more for my annual fee and have their prices not skyrocket…with that said, we will see how this plays out in the next year or two.

How It Works

Upon entering any Costco warehouse, members will now need to present their membership cards at a scanning station near the entrance.

A Costco employee or an automated system will scan the card to verify active membership status before allowing entry into the store.

Benefits of the Policy

Enhanced Security: By ensuring that only paying members can enter, Costco can better protect its membership-based business model and reduce unauthorized access.

Streamlined Experience: The scanning process can help expedite entry, reducing congestion and potential delays at the entrance.

Data Collection: This policy allows Costco to gather data on member visits, which can help the company understand shopping patterns and improve services.

See Also: How to Find Costco Liquidation Stores and Save Big

Potential Drawbacks

While the new policy has several advantages, it may also pose some inconveniences:

Entry Delays: During peak shopping times, the scanning process might lead to longer lines at the entrance.

Forgotten Cards: Members who forget their cards may face delays or need to verify their membership status at the customer service desk.

Privacy Concerns: Some members might be concerned about the increased data collection and its implications for privacy.

BUCKLING DOWN ON THE FOOD COURT

Costco is buckling down on non-members taking advantage of the food court.

By installing membership scanners at the entrance, Costco is trying to eliminate non-members from buying the $1.50 hot dog meal deal and other food court favorites. Time will tell how effective it will be.

Member Reactions

Some folks are all for it — they like the extra security and think it’ll make things move faster.

Other people are more like, “Great, another thing slowing us down,” or freaking out about privacy.

Costco’s saying they’re gonna keep it smooth and fix any issues fast, but you know how that goes — we’ll see.

How to Make the Most of Your Membership

With the increased membership fees and the new entry policy, it’s more important than ever to maximize your membership.

Here are some tips to help you get the most out of your membership:

1. Shop Strategically

Bulk Purchases: When you’re shopping Costco, the move is to stock up on stuff you know you’ll actually use — like paper towels, canned goods, cleaning supplies — the non-perishable, no-brainer stuff.

Sales and Discounts: Also, always check the sales and that little coupon booklet they hand out or post online — half the time you can stack deals and save even more.

Gas Savings: And if your Costco’s got a gas station, definitely fill up there — gas is usually way cheaper, and honestly, that alone can make the membership worth it some months.

See Also: 8 Slick Things You Can Do at Costco WITHOUT a Membership

PRO TIP: AVOID THE MEMBERSHIP FEE ALTOGTHER

Did you know that you can cancel your annual Costco membership on day 364 for a FULL refund? No questions asked.

You might get a dirty look at the customer service desk. But if that doesn’t bother you, it’s definitely an option if you want to avoid the annual fee. You can always start a new membership once it’s cancelled and you get your refund. 

2. Use Member Services

Travel and Auto Programs: Costco’s not just about groceries and giant tubs of peanut butter — don’t sleep on their travel and car deals either. You can score cheaper vacations, rental cars, even discounts on buying a car if you go through their programs.

Pharmacy and Health Services: And if you need prescriptions, glasses, or hearing aids, check their pharmacy and health stuff too — it’s way cheaper than what you’d pay walking into a regular pharmacy or optical shop. Honestly, if you’re paying for the membership, you might as well squeeze every penny out of it.

3. Leverage the Executive Membership

2% Reward: If you’re rocking the Executive membership at Costco, don’t forget you’re supposed to be getting that 2% back on what you spend.

It sounds great, but you actually gotta spend enough to make it worth that higher membership fee. Keep an eye on it — otherwise you’re just handing Costco extra money for no reason.

4. Stay Informed

Newsletters and Apps: Sign up for Costco’s newsletters and download their app to stay informed about upcoming sales, new products, and special events.

Customer Service: If you’re confused or annoyed about any of the new Costco rules, just hit up customer service. Seriously — don’t sit there wondering if you’re getting screwed over or missing out on something.

Ask the Reader: How do you feel about Costco raising membership fees? What about their new “scan your card” upon entry policy? Let me know in the comments.

By Kyle James

Kyle James( Owner/Founder )

I started Rather-Be-Shopping.com in 2000 and have become a consumer expert and advocate writing about out-of-the-box ways to save at stores like Amazon, Walmart, Target and Costco to name a few. I’ve been featured on FOX News, Good Morning America, and the NY Times talking about my savings tips. (Learn more)