Costco has recently announced an increase in its membership fees, marking the first change since 2017. Here’s a simplified breakdown of what this means for you.
New Membership Fees
Costco’s basic membership fee has gone up from $60 to $65. This increase is the result of a lot of consideration and comes after the company resisted raising prices for a few years.
Reasons Behind the Increase
Costco usually reviews its membership fees every five years. Although an increase was expected in 2022, the then-CFO, Richard A. Galanti, chose to keep the fees the same due
to the financial struggles families faced after the pandemic. Now, under the new CFO, Gary Millerchip, the fee increase has been approved.
Gary Millerchip’s Statement
Gary Millerchip, the new CFO, explained that the decision to increase the membership fee was carefully thought out. He mentioned, “We feel really good about membership renewal rates and the value we deliver to members. The increase is more a question of when rather than if.”
Other Changes by Costco
Along with the basic membership fee increase, the cost of the premium membership has also gone up from $120 to $130. However, the reward for executive memberships has been increased from $1,000 to $1,250.
Costco is also enforcing rules against non-members using their food courts, but they will continue to offer their popular $1.50 hot dog combo.
Impact on Members
The fee increase will affect over 52 million Costco members. While some may be worried about the higher fees, the added rewards for executive memberships aim to provide more value to loyal customers.
1. Why did Costco increase its membership fees?
Costco increased its fees to match rising costs and provide more value, including increased rewards for executive members.
2. How much is the new basic membership fee?
The new basic membership fee is $65, up from the previous $60.
3. What is the cost of the premium membership now?
The premium membership fee has increased from $120 to $130.
4. Has Costco changed any benefits with the fee increase?
Yes, the reward for executive memberships has increased from $1,000 to $1,250.
5. Will Costco still offer its $1.50 hot dog combo?
Yes, the $1.50 hot dog combo will continue to be available.
