Many people combine Costco because the warehouse club giant is known for competitive prices on everything from groceries to apparel to electronics. And if you want to eke out even more savings at Costco in the new year, here are a few strategies worth focusing on.
1. Get the right membership
Costco offers two types of memberships — basic and Executive. The former costs $60 a year as of now, while the latter costs $120.
The Executive membership, however, gives you 2% cash back on Costco purchases. So if your spending is high enough, the Executive membership might save you money compared to the basic membership despite its higher cost.
Assuming these membership rates stay the same, $3,000 is your break-even point for the executive membership upgrade. If you spend that much at Costco in a year, you get $60 back, which covers the exact difference between the two membership fees. Once you spend beyond $3,000, you save more money from an Executive membership.
2. Buy Kirkland products
Kirkland is Costco’s signature brand, and you’ll find it on everything from baked goods to paper products. You may be used to bringing home certain brands, but try to look past the packaging in the course of your Costco shopping. The Kirkland brand will, in many cases, be your less expensive option.
Case in point: Right now, a 12-pack of Kirkland tissues costs $19.99 online, and your cost per tissue is $0.02. A 12-pack of Kleenex tissues is $24.99, and your cost per tissue is $0.03.
3. Shop at the store instead of online
Shopping online may be convenient, but if your goal is to save money at Costco, then sticking to in-store shopping is better. Many of the items you’ll find on Costco.com are available for lower prices in stores.
Also, many items you’ll find at Costco.com are part of its two-day delivery program. This means you have to confront a $75 online order minimum or otherwise pay for shipping. And it’s not as if you get a choice to have your item ship at a slower speed for free. Items designated for two-day delivery fall into that category, even if you’re willing to expect.
4. Don’t be shy about asking for price adjustments
Costco’s prices can change from one month to the next. And you should know that Costco will give you a price adjustment if you buy something and its price drops within 30 days — all you need to do is fill out a form for online orders or go to customer service if you made your purchase in person.
That said, if you need to inquire a price adjustment at your local Costco store, your best bet is to try to go at an off-peak time to avoid long lines. It could pay to show up as soon as Costco’s doors open and make a beeline for the customer service area. Or, go at night, closer to closing time.
The whole purpose of paying for a Costco membership is to save money on the products you buy. These tips could help you savor even more savings in the new year, so be sure to work them into your shopping routine.
Alert: highest cash back card we’ve seen now has 0% intro APR until 2025
If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.
