How to Get Costco Membership at a Discount

By Tisha Tolar, on December 6, 2010

Costco is a popular membership-only warehouse club that provides brand-named merchandise typically sold in bulk at a substantial discounted prices. They offer a large selection of products and departments in one location to make shopping cheaper and more convenient for consumers. Costco has been in business since 1976 when it started out as Price Club and operated out of a converted airplane hangar in California. It used to only provide sales to small business but soon changed protocol and began selling to the general public.

Should You Become a Costco Member?

Will a Costco membership be worth the membership fee? Will it benefit you to become a member? Well, it really depends on the individual and their shopping habits and needs. Explore the Costco website to see what kinds of products and services they offer and if there is a location convenient to you.

Costco membership comes in three flavors:

Costco Executive Member

Executive memberships are the highest level a consumer can join. Executive members will receive in addition to access to the warehouse stores, a 2% reward on nearly all purchases made at Costco. Executive members also receive lower rates on check printing, payroll services and identity protection. Members also get an account bonus from money market and online savings accounts, roadside assistance under the Costco auto insurance plan, and additional travel benefits.

Members can get the executive level benefits by upgrading for a $50 from another Costco membership or at a prorated rate depending on the months left under your current membership. You’ll receive a new card stating executive-level status and the list of services available in your state.

Costco Business Member

Business memberships are open to any licensed business, non profit organization, government agency, farmer, and rancher for a $50 membership fee. Business members will receive one card with up to 6 additional business cards for $40 each. Business identification is required when applying for membership and provide appropriate resale information is merchandise is purchased for that reason.

Costco Gold Star Member

Gold Star memberships are open to any person not qualified for a Business Membership.  Membership for individuals under the Gold Star program is $50 annually and includes one household card per membership.

For any member who is not satisfied with their membership at any time, Costco will refund your membership fee in full.

How to Get Costco Membership at a Discount

There are ways to get membership at a discounted price if you wish to join the club and are eligible for the following offers that can save you money.

• Costco’s TrueEarnings Card (recommended) – If you are a Costco member, you can sign up for the TrueEarnings American Express Card and American Express will waive the annual membership fee (you still have to pay the Costco membership fee). With the TrueEarnings Card, you get additional cash back on purchases, gas, travel, and dining on top of your membership bonus. Every year, we earn more cash back with this card than it costs us in the membership fee — so we actually make money by being a member!
• Direct Membership Discount – Occasionally Costco will offer special membership promotions directly to customers in-store or through their website.
• Costco Employer Discount – If you happen to work for a company associated with Costco, you may have the opportunity to save up to $20 on your membership fee. Typically, representatives of Costco will visit affiliate companies to sign up new members who must pay full price for the membership but will receive in turn a gift card for up to $20 as a gift.
• Costco Association Discount – As a member of some professional organizations, you may be entitled to a special discount. Costco uses this as a marketing technique for large companies and organizations to promote memberships so they do it at a reduced rate.
• Online Coupon Codes – there are some websites that specialize in online coupons and discount codes. Costco membership is often featured on these sites and can save you a few bucks on your membership or even grant you a free membership with some deals.

Tisha Tolar is a co-owner of Trifecta Strategies, LLC and the author of Gen X. When she is not busy being a fiction writer, she writes personal finance articles for several web sites, including Moolanomy.com.

Add Your Question or Comment (7 Comments)

1. Charles Baratta:

   December 6, 2010 at 7:49 pm

   Thanks for the post. Discount cards can be used well if only we spend well too. Well, is it a lifetime membership?
2. David:

   December 7, 2010 at 1:47 pm

   Even if the membership comes at a discount, if you end up paying more overall than at the “regular” stores, is there any real savings?

   So, the bottom line question is: Does Costco help a family’s household budget save money?

   David
3. James:

   December 7, 2010 at 6:14 pm

   As a Costco Executive member, I have to say that in many cases Costco saves money. Milk is $2.79/gallon and much of the produce is about 40% less than the grocery store. Those two things alone save us enough to pay for the membership. There is a risk of overbuying since much of it comes in bulk. Also, you might be able to do better on some things by clipping coupons and tracking sales at other stores, but that was something we just don’t wish to spend our time doing, so I feel like it saves us money.

   One note about the Executive membership. You pay a $50 premium over a standard membership, but you get 2% of your purchased in cash back at the end of the year. (Sort-of cash back, since you have to use it at Costco) They guarantee this check to be at least $50 regardless of you spending so you get the $50 premium back at the end of the year anyway. We have always exceeded the $50 minimum. Costco gets a lot of our money.
4. David:

   December 7, 2010 at 6:59 pm

   Hmmm. Will have to do a price comparison. A challenge my readers might enjoy.
5. Robert:

   December 8, 2010 at 4:18 pm

   The Costco Executive Membership costs you $100 per year, but you get 2% back on purchases. But like James said, they guarantee you $50 minimum in cash back.

   Also, it is a Costco cash check they send you, but you can take it to any Costco cashier and they will cash it out for you.
6. Bernz:

   January 17, 2011 at 12:49 pm

   We have been a Costco regular shoppers for years. We are executive members who pays $100/year. We also get cash back for every purchase and we pretty much get the membership fee back every year. We are a family of four and we buy most of our home supplies from Costco plus other stuffs. We love Costco but you have to know what you are buying. If you do not have to buy a certain items in bulk then don’t, buy it somewhere else.
7. Jon:

   March 24, 2011 at 12:34 am

   I am planning on buying the Motorola Atrix and found that I can get a $50 membership at Costco and get the phone from Costco at a discounted price… for a total of $180 which is $20 cheaper than if I were to walk into an AT&T store.

   Bottom line: Phone I want, “free” Costco membership, and $20 extra $$$. Find something that makes the membership worth it, then the rest of the year you can save a lot on stuff you would buy anyway.