Now that you are asking, does the Costco Executive Membership save you the additional amount of money, the answer is yes–it can be a good investment to a lot of shoppers–but only if you do indeed shop at Costco enough to use the benefits of being an Executive Member. Membership is pricier than the ordinary one, but the benefits and advantages can be easily justified when you are a regular Costco buyer. We will get into the Executive Membership, what it is, what it provides and how you can determine whether it is the right step to take.
What Is Costco Executive Membership?
There are two membership types available at Costco which are the Gold Star Membership and the Executive Membership. The simplest plan is the Gold Star, which costs 60 dollars per year. The Executive Membership is a premium that is charged at 120 per year.
On the face of it, it may not be necessary to pay twice. However the Executive Membership also has some added advantages that can literally put money in your pocket. The biggest benefit is the 2 percent annual reward offered on the majority of Costco purchases, in-store and online, up to 1,000 annually.
Benefits of Costco Executive Membership
The following are also the main advantages of upgrading:
1. 2% Rewards on Purchases
The biggest selling point of the Executive Membership is the 2% reward. For example:
- You can earn back 60 just by spending 3,000 a year at Costco, which will cover the upgrade cost.
- The more you spend the more you get back- spending 5,000 dollars will give you 100 back.
This in itself makes the membership worth the money to many families or small businesses that frequent Costco to purchase groceries, household and office supplies.
2. Exclusive Discounts on Costco Services
Executive Members receive additional discounts on a host of Costco services which include:
- Travel packages (vacations, cruises, rental cars, and hotels)
- Auto and home insurance
- Identity protection
- Check printing and payment processing services
When you draw at least some of these services once or twice a year, the discounts will save you well beyond the upgrade fee of $60.
3. Same Great Shopping Access
Executive Members have access to all Costco warehouses, Costco gas stations, Costco Optical and Costco.com just like regular members. Therefore, you are also not losing anything by upgrading, and you just have added more features on top.
4. Annual 2% Reward Certificate
Costco sends you your reward one year later in the form of a certificate that you can redeem in-store. Most of the members consider it as a small bonus check that can be used in a large shopping spree.
How to Get an Executive Membership in Costco
It is easy to obtain an Executive Membership. You can:
- Sign up directly at any Costco warehouse.
- Renew a current Gold Star membership at counter.
- Become a member on the Costco Web site.
When you upgrade in the middle of the year, Costco will reduce the price to the extent that you will only pay the difference till the end of your membership period.
Who does an Executive Membership Go to?
The Executive Membership is most suitable to:
- Families that make their grocery purchases primarily at Costco.
- Small business owners are bulk buyers of supplies.
- Travelers who travel a lot and wish to enjoy Costco Travel discounts.
- Any person who spends more than 3,000 a year at Costco (that equals approximately 250 per month).
Unless you fall into one of these categories, then it is likely that the membership will actually pay itself off and beyond.
When the Executive Membership Might Not Be Worth It
There are those whom the basic Gold Star membership would make more sense. If you:
- Shop at Costco only occasionally,
- Less than 3,000/year there, or
- Occasionally utilize the travel or other services of Costco,
then the additional 60 may not be worth the money. Then you should take the Gold Star plan and receive the same benefits of low prices in Costco.
The Bottom Line
Then the question arises, Is Costco Executive Membership Worth It? Yes, when you are an ordinary Costco customer. Its higher membership price can be easily compensated by the 2 percent cashback and other benefits. The largest beneficiaries are families, small businesses and regulars. However, when you only do your shopping at Costco occasionally, the regular Gold Star membership is the wiser one.
Ultimately it depends on your shopping habits and the amount you spend. When Costco is a part of your daily routine, Executive Membership is one of those upgrades that can potentially be repaid after year after year.
