Will Costco be raising membership fees soon? Probably not, if you ask CFO Gary Millerchip. During the company’s most recent earnings call, he confirmed that while fees are likely to increase at some point, there are no near-term plans to raise them.
Now you may not be happy about the idea of an eventual Costco fee hike. And you may have already decided that you’ll be canceling your membership once that happens. But here are three reasons to consider saying goodbye to Costco that have nothing to do with the cost of membership fees.
1. You’ve moved and you don’t have a Costco nearby
A big reason to shop at Costco in person is to enjoy the maximum amount of savings. You’ll pay more for both fresh groceries and nonperishables if you order them online for delivery.
But if you’ve moved recently and no longer have easy access to a Costco location, then it may not pay to keep a membership. You may find that you’re not saving all that much money if you do the bulk of your Costco shopping online — especially with fresh groceries, which tend to have a significant markup.
2. You’re constantly overspending at Costco
If you’ve found yourself repeatedly making unplanned purchases at Costco, you should know that it’s not all your fault. Part of Costco’s strategy in introducing new inventory is to lure customers into buying more than they planned.
In fact, Millerchip said on the company’s last earnings call, “People come in to spend $100 and walk out with $300. That’s because our buyers and our operators do a great job in making the warehouses exciting and keeping those, you know, on the forefront of what they’re — when they come in there and do their basic shopping, they pick up a few additional items that just compel them at the time.”
But repeated impulse buys could mess with your budget and finances in a serious way. So if you don’t trust yourself to break that habit, you may want to say goodbye to your Costco membership.
Your membership might save you $20 a week on purchases in theory. But if you then go out and spend an extra $40 each week on a whim, you’re not actually doing yourself any favors.
3. Your household needs have changed
It often makes sense to join Costco when you have a bigger family to feed. But if you’ve become a smaller household, whether because your kids have started college or they’ve grown up and moved out, then it may not be worth it for you to keep buying perishables in bulk.
Think about your shopping needs if your household size has shrunk. You may find that seeking out supermarket sales results in more savings than shopping at Costco, when you factor in the likelihood of food waste due to being forced to buy so much in bulk.
A Costco fee hike shouldn’t necessarily push you to cancel your membership. Chances are, if you’re getting great value now, you’ll continue to get great value even if you’re paying a little bit more on an annual basis. But these three reasons are perfectly valid ones to stop shopping at Costco, so you may want to pull the plug on your membership if any apply to you.
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