As predicted earlier this year, it was about time for Costco to do it’s once-every-five-years-or-so price increase on membership fees, and we were right. The warehouse club has confirmed a 10% cost increase for most of its members.
Costco announced last night in its latest earnings release that the price of standard memberships (the Goldstar and Business members) will increase to $60 a year, up from the current rate of $55.
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The cost of an Executive membership will also go up, by around 9%, from $110 per year to $120. For those unfamiliar with Costco, the Executive tier entitles members to 2% rewards on qualified purchases, more discounts and benefits, and extra benefits on certain Costco Travel products.
This price hike shouldn’t take longtime Costco members by surprise, as the company’s Chief Financial Officer Richard Galanti mentioned in January that the time was probably right for a price increase. Analysts saw this coming as far back as April 2016, noting almost a year ago that the club has a habit of boosting membership fees every five to six years, with the last hike occurring in 2011.
by Mary Beth Quirk via Consumerist