3 Reasons You Should Cancel Your Costco Membership
Costco isn't just a place to pick up your household basics — it's a cult favorite for many loyal shoppers. From food to furniture, Costco has all your needs at competitive prices, but bulk shopping isn't for everyone. While it seems like everyone you know is a fan of this warehouse club, there's plenty of non-Costco members out there.
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According to a 2023 GOBankingRates survey that polled 1,028 Americans, 42% of respondents said they were not Costco members. As for current members who are on the fence about whether they should keep their membership, here are three reasons why.
For years Costco membership prices didn't increase, but in July 2024, the cost of having a membership went up. According to a press release, the prices are now as follows:
Gold Star membership is now $65 up from $60.
Business membership is now $65 up from $60.
Business/Add-on Affiliate membership is now $65 up from $60
Executive membership is now $130, up from $120
The prices certainly didn't skyrocket, but the uptick in cost did turn off some customers and was reason enough to cancel membership.
In response to the price hike, Redditor FlyByAngels wrote, 'We are not renewing our Costco membership. We get much better values at Sam's Club and they have scan and go. The cost of Costco items don't warrant paying a high fee to be a member. That is for 2 people. Perhaps those with children at home can save more.'
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In order to justify having a Costco membership, you need to save more money through your purchases than what you spend on your annual membership.
'This means that you buy enough things at prices that are lower than you could get elsewhere, and you don't buy too many things that you would not have otherwise purchased,' explained Annie Hanson, accredited financial counselor® with Mindfully Money.
Shopping at Costco works for many people who use the services and make frequent purchases, but assuming that shopping at the warehouse automatically saves you money could put a dent in your wallet. There are times it's not financially worth it.
According to Hanson, there are four things that make a membership not valuable:
When you add so many extra things to your cart that you hadn't planned to purchased that you end up spending more.
When you don't buy enough items that are good prices to make up for the membership cost.
When you're a savvy shopper who compares prices, watches for sales and has the time to visit multiple stores.
When you buy 2 pounds of strawberries (or other bulk items) that you don't eat and end up throwing away.
'Basically, if you want to save money by shopping at Costco, you have to be intentional: Focus on buying things that you know are good prices, and resist all of the other temptations,' she explained.
Anyone can walk in the door at Walmart, Target and other big-box retailers, but Costco is different. You need to flash your membership card to get in, but there are four ways to shop at the warehouse giant without paying for a membership.
Go with a friend who has a Costco card.
Shop online on Costco's website, but there are some drawbacks. Non-members don't have access to all items and are charged a 5% surcharge, according to Money.
Shop with a delivery service like Instacart.
Use a Costco Shop Card, which is essentially a gift card that a member must buy. However, according to Costco's customer service FAQs page, non-members can use the card at warehouse locations in the U.S., Canada, or Puerto Rico.
It's easy to get sucked into Costco. After all, there are many appealing services, it's convenient and has jammed-packed aisles filled with seasonal items, new grocery drops and must-have household essentials. But it's not ideal for everyone.
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This article originally appeared on GOBankingRates.com: 3 Reasons You Should Cancel Your Costco Membership
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