Here’s How I Scored $1,000 in Costco Cash the Easy Way

In some parts of the country, people lose power on occasion, such as during an intense storm. In my neighborhood, all it takes is a stiff breeze for the power to go out. And when it goes out, it tends to stay out for hours.

As someone who works from home, that’s clearly a problem. Years ago, I made the decision to invest in a standby generator — the kind that’s hooked up to your house and turns on automatically when the power goes out.

Although a standby generator costs a lot more than a portable one, mine can power my entire home, and I don’t have to worry about it running out of gas or someone tripping over an extension cord. And let’s face it — no air conditioning on a 95-degree day in August can become unbearable quickly. A portable generator can’t power an air conditioning system (at least not in my experience), but a standby generator can.

Of course, it took a lot of savings to be able to afford a standby generator — $10,000 worth, to be exact. But it’s the best investment in my home I’ve ever made. And what lessened the blow of shelling out that much money was the free cash back I got from Costco.

A deal worth taking

When I was shopping around for generator installation quotes, I went to a few different sources. Most of the quotes I got came in around $10,500. Costco’s was only a touch more competitive at $10,000. But Costco’s offer also came with a sweet incentive — a 10% Shop Card upon the completion of my project.

If you’re not familiar with a Shop Card, it’s Costco’s version of a gift card. You can use a Shop Card for any Costco item you want, and they never expire.

Seeing as how I was going to be spending the money on a generator regardless, to me, Costco’s deal read like $1,000 in free money. And after shelling out a large chunk of cash to do that project, it was nice to get my groceries and cleaning supplies for free at Costco for a good number of weeks by using my Shop Card.

You can snag free Costco cash, too

There are different ways you can get your hands on free money from Costco. First, you could upgrade from a basic membership to an Executive one. You’ll pay $120 instead of $60 per year, but you’ll be eligible for 2% back on most Costco purchases.

Granted, you probably won’t get $1,000 cash back from an Executive membership because you’d have to spend $50,000 in a year to get a payday that large. But if you spend $5,000 at Costco during the year, which is feasible if you shop there most weeks, you’re eligible for $100 back. Subtract the $60 upgrade fee, and you’re still up $40.

You can also score cash back by using Costco for home installation services like I did. Right now, Costco is offering a free 10% Shop Card on services that include:

  • Window treatments
  • Flooring and carpet
  • Solar panels
  • Home organization systems
  • Water softeners
  • HVAC systems
  • Countertops

Once again, you may not get $1,000 back if your project doesn’t amount to $10,000. But if you’re paying $4,000 for a water softener, that’s $400 in Costco cash coming your way.

Of course, any time you’re looking to do home improvements, it pays to shop around for quotes. But if you find a company whose price is comparable to Costco’s, don’t forget to factor in the free Costco cash. A $5,000 quote from Costco, for example, is really more like $4,500 when you account for the fact that your next $500 in Costco purchases will be free with your Shop Card.

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