Costco’s Latest Move Has Members Unhappy

Costco’s latest move has made consumers unhappy.

Costco Wholesale group has announced it will raise its prices for membership starting September 1.

According to Costco’s website, the wholesaler will raise the price of its Basic Gold Star membership from $60 to $65.

The wholesaler will also raise its premium Executive membership from $120 to $130.

Costco just increased the price of its annual membership for the first time in seven years?

Inflation is officially out of hand. 💸 $COST pic.twitter.com/AxBfNvgtbW

— TrendSpider (@TrendSpider) September 3, 2024

Costco $COST recently increased its membership fee.

Here’s how it changed overtime: pic.twitter.com/h5IP4LWIJZ

— carbonfinance (@carbonfinancex) September 3, 2024

Per Local 10:

Costco Wholesale Club is raising its prices for membership, beginning on September 1. It is the first time in seven years the company will raise its membership price.

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According to the wholesaler’s website, Costco will raise the price from the basic Gold Star membership from $60 to $65 annually, while the cost for the premium Executive membership will rise from $120 to $130.

The increase in the fees comes after the company began to require members to scan their cards as they enter the store.

According to the wholesaler’s customer service webpage, membership scanning devices will be installed at the entrance of the warehouses. Members will be prompted to scan their digital or physical membership cards before entering.

The test system for the membership card scanners was initially installed in a few stores across the country in January 2024.

Charliee Munger belives the membership card and increase of fees will keep down theft in the wholesale store.

Berkshire Hathaway board member Chris Davis once asked Charlie Munger why Costco didn’t drop the membership card.

Let anyone shop and raise prices by 2% (still great value), thus making up for lost membership fees (and more).

Munger said the card is important filter:

▫️“Think… pic.twitter.com/s75OH0D0XH

— Trung Phan (@TrungTPhan) September 1, 2024

Berkshire Hathaway board member Chris Davis once asked Charlie Munger why Costco didn’t drop the membership card.

Let anyone shop and raise prices by 2% (still great value), thus making up for lost membership fees (and more).

Munger said the card is important filter:

▫️“Think about who you’re keeping out [with a membership card]. Think about the cohort that won’t give you their license and their ID and get their picture taken.

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Or they aren’t organized enough to do it, or they can’t do the math to realize [the value]…that cohort will have a 100% of your shoplifters and a 100% of your thieves. Now, it’ll also have most of your small tickets.

And that cohort relative to the US population will probably be shrinking as a % of GDP relative to the people that can do the math [on Costco’s value].”▫️

I have a membership but have been guffing on the math for a few years tbh. They keep telling me to upgrade from Gold to Business but I’m too lazy (even if the 2-3% Cash Back on Business pays back after a few trips).

This is a long way of saying Costco’s membership price hike effective today — its first in 7 years — is annoying but when I decide to do the math in a few months, it’ll be worth it.