Costco’s recent announcement about raising its membership fees might seem like a big deal. Starting September 1, the basic Gold Star membership will increase from $60 to $65. The Executive membership will also see a bump from $120 to $130. While a $5 increase might feel annoying, here’s why it’s not worth losing sleep over.
1. It’s Just 42 Pence More Per Month
When money feels tight, every extra expense can sting. But let’s break down that $5 increase: it’s an extra 42 pence per month.
Think About It:
- Monthly Impact: Paying an extra 42 pence a month is negligible compared to many daily expenses.
- Simple Adjustments: You could easily save that amount by cutting back on a small treat, like a weekly coffee.
For instance, if you buy a £5 coffee every week, skipping just one could cover the entire annual fee increase. The trade-off is minimal, especially when you consider the benefits Costco provides.
2. The Increased Fee Could Lead to Greater Savings
You might be grumbling about corporate greed, but here’s the truth: Costco uses membership fees to offer better prices and expanded services.
Benefits of Paying More:
- Potential Savings: The extra $5 could lead to more significant savings on the essentials you purchase.
- Enhanced Services: Costco often uses additional funds to improve their offerings, such as new product lines, expanded auto services, or better health-related products.
Example: If the fee increase contributes to better deals or new perks, you could end up saving more than the extra $5 you’re paying.
3. Assess Your Membership Value
Before deciding whether to cancel your membership, evaluate the current value you’re getting from it.
Questions to Ask Yourself:
- Are You Getting Good Value?: If you’re saving more than the cost of the membership fee, then the increase is worth it.
- Value vs. Cost: If you’re not benefitting from your membership, consider whether it’s worth keeping.
Tip: Don’t just focus on the fee increase. Look at the overall value you get from your Costco membership. If it’s delivering value, a slight fee hike shouldn’t be a deal-breaker.
4. Maximise Your Savings with the Right Credit Card
If you’re shopping at Costco, using a credit card with excellent rewards can help offset the cost of the membership fee increase.
Best Credit Cards for Costco:
- High Rewards: Look for credit cards offering substantial rewards on everyday purchases.
- Sign-Up Bonuses: Many top cards come with hefty sign-up bonuses that can further enhance your savings.
- 0% Interest: Some cards offer a 0% interest period, which can save you even more.
Recommendation: Using a credit card that provides strong cash back or rewards can make your membership fee increase feel less impactful.
5. Don’t Sweat the Small Stuff
Ultimately, while nobody likes paying more, the increase in Costco’s membership fee is relatively minor in the grand scheme of things.
Key Takeaways:
- Manageable Impact: An extra $5 per year, or 42 pence per month, is a small price to pay for the benefits Costco offers.
- Increased Value: The fee hike might lead to better services and greater savings.
- Evaluate and Adjust: Make sure you’re getting good value from your membership to justify keeping it.
