The Cost of Shopping At Your Tri-Cities Costco Is Going Up

The Washington State based mega retailer is poised to do something it hasn't done in 7 years, raise the cost of membership.  The question had been looming for the last couple of years as inflation soared as well as the price tag on just about all goods and services.  Costco, however, did it's best to maintain cost effectiveness for it's members while their direct competitors (along with other retailers) relented and increased prices.

A prime example is the steadfast refusal of the mega retailer to raise the price of it's signature $1.50 hot dog combo.  Executives have been asked multiple times whether or not inflation will hit arguably the most affordable combo meal in America.  Each time the answer has been "no".  Two years ago Sam's Club raised their membership fee and also put a $50 minimum on online orders to qualify for free shipping.

If They Haven't Raised The Fee In Seven Years...Why Now?

Costco, which boasts around 133 million members worldwide at 882 warehouses, said the small increase will help continue to keep prices low.  It is also only going to impact members in the United States and Canada.  You can see below how much the increase will be for each of the four memberships offered.

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The company said approximately 52 million members will be hit with the increase, and a little more than half of those are Executive Members.

How And When Will The Cost Go Up?

September 1st is the date the increases go into effect.  If you do not have a membership currently you can buy an annual membership at the current price and you won't see an increase until your renewal.  If you are currently a member and your renewal is before September 1st, your membership will renew at the current price.

For those whose renewals are after September 1st (like mine) you'll be charged the increased fee at that time.  Membership fees make up just under 2% of Costco's total annual revenue.  The company is also increasing the cap on rewards for Executive Members.  As of now the 2% reward cap is $1,000.  That will go up to $1,250 on September 1st as well.  That is just for the membership reward which is separate from the Costco credit card rewards program.