Yes, you heard that right, Costco membership fees are going up June 1st, 2017. The Goldstar, Business, and Business Add-On memberships in the U.S. and Canada will rise $5 from $55 to $60 annually. Executive memberships in the U.S. and Canada will rise $10 from $110 to $120 annually. The last time the membership fee increased was November 2011, when it also rose $5 and $10 respectively. Historically there has been a pattern of an increase to the Costco membership fee every 5 or 6 years.
What benefit to me is there with Costco raising membership prices?
- The Executive membership annual 2% reward maximum was raised from $750 to $1,000 (If you spend more than $38,000 annually at Costco this change will be profitable for you)
How can I avoid the fee increase this year?
- You can renew early to save a little money this year. Costco will allow you to renew 3 months before your expiration date. So, if you have a renewal date of August 31st, 2017 or sooner, you should be able to renew by May 31st to pay the current price one last time. You can log into your online account and renew pretty easily, as well as see exactly when your renewal date is
- You can buy the “Gift of Membership” gift cards in store at the current price and renew with them later
Why is Costco raising its membership fees?
- They’ve done it every 5 or 6 years
- It doesn’t scare customers away (91% annual renewal rate in the U.S. and Canada)
- It will bring in roughly an extra $300 million annually (40 million member households in U.S. and Canada, 50% of which are Executive)
- Costco announced at the same time their quarterly earnings and they did not meet Wall Street expectations
Costco membership fee history
- $25 – 1983
- $30 – 1992
- $35 – 1995
- $40 – 1998
- $45 – 2000
- $50 – May 2006
- $55 – Nov 2011
$60 – June 2017