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Costco Membership Fee Going UP

Effective June 1, 2017, Costco’s two membership levels are going up by $5 and $10 respectively. The new fees are as follows:

  • Gold Star Membership increases from $55 to $60
  • Executive Membership increases from $110 to $120

This applies to Canada and the U.S., as they have the same fee in their respective currencies.

Breaking Even

I previously written a post about whether the annual fee is worth it, so I won’t go over all the details of the program. However, as a result of the new increase, I will update the break even calculations. Note that Executive Members get 2% cash back on all purchases (up to $750 cash back or $37,500 in annual spending).

Therefore, if you spend $3,000 per year, you would $60 in cash back, which makes up the difference between the two membership levels ($120 – $60). So if you spend more than $3,000 per year at Costco, then it is worthwhile to get the Executive Membership instead.

Conclusion

Normally, I would find it normal for a company to increase their membership fees to keep up with inflation, but for Costco, I would have hoped that they would decrease the fee, seeing as they are suppose to be a discount retailer.

Anyway, it has been reported that Costco has 85 million members worldwide. Even if we only calculate $5 increase per member, that’s an additional $425 million in revenue for them. How crazy is that?

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Pointshogger aims to provide analysis and updates on earning loyalty reward points and maximizing the value of your points. We hope to inspire our readers to experience the joy of travel and make the most out of what they've already got!

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