It's Actually Happening: Costco Is Raising Membership Prices

If you were debating buying a Costco membership, you might want to do so by the end of August. Costco recently announced that it will be raising the price of Gold Star and Business memberships by $5, and Executive memberships by $10. This price hike will apply to all locations in the United States and Canada beginning on September 1, 2024. These new prices will also apply to annual fees for members wishing to renew.

Costco has changed a lot in 2024, but news of a membership price increase comes as a particular surprise. The last time Costco raised membership prices was back in 2017, although Costco executives have noted that an increase was always going to end up being necessary. A Gold Star or Business membership will now cost $65, and the Executive membership will now cost $130. On the plus side, the 2% annual reward for Executive Costco membership holders will increase from a $1,000 rebate to $1,250, offering an extra $250 of cash back to dedicated Costco members who qualify.

According to Forbes, Costco makes most of its money from annual membership fees, reporting a profit of $1.1 billion in the most recent fiscal quarter on memberships alone. The bulk retailer has also seen an increase of net profit over the last few years, recently reporting a profit rise of 7.4% in the past five weeks compared to this time last year. According to Costco, this price hike will affect over 52 million Costco members. But honestly, they don't seem to be up in arms about the news.

Costco members on Reddit reacted to the news rather graciously, claiming that Costco's low prices on products already make up for any small changes in membership fees. One user commented, "They could literally double it and I wouldn't care. The membership pays for itself within like 2 visits." Many other customers concurred, praising Costco for offering some of the best deals around. Another Redditor justified the price hike with the annual rebate check, sharing, "Costco is pretty much paying me to have the membership with their 2% reward certificate anyway." Others were happy to hear the news about Costco's rising profits because they also hold Costco stock, which has reportedly seen continued growth. While membership prices will soon cost 8% more annually, at least the hot dog combo price at Costco's food court will remain $1.50.