5 ways to save money at Costco

There are many ways to stretch your budget by shopping at Costco. Even if you don’t buy everyday essentials, you can still satisfy your basic membership with just a gift card transaction.

But not everyone is maximizing their Costco savings. I see many people leaving money on the proverbial shelf by not taking advantage of all the ways they can save. Here are a few things you might overlook:

1. Not upgrading to Executive membership

There are times when paying more for a higher tier product can save you money (for example, if your credit card annual fee qualifies you for bonus rewards or benefits). For those who spend a lot of money at Costco each year, upgrading to an Executive membership may be one option.

how? Executive members receive an annual reward equal to 2% of their in-store Costco purchases from the previous year. This can really add up:

Source: Author’s calculations

It costs $60 to upgrade from a regular Costco Gold membership to an Executive membership, so your break-even point is spending $250 a month. If you spend more At Costco, you can actually make money by upgrading.

2. Omission of Kirkland signature items

Looking at the cost alone, it is easy to see the appeal of Costco’s house brand, Kirkland Signature. The prices are very competitive with typical grocery store prices and much cheaper than most supermarket prices.

But despite the price, I can see why you might be hesitant to give it a try. I too have been burned by store brands before. But what I can tell you is that this is not your typical store brand.

Costco takes great care to maintain its Kirkland Signature products to a high standard, and it shows. In fact, it’s a well-known “secret” that some popular brands manufacture some Kirkland Signature products. (And there are some strong theories about which brand may be producing the other.)

3. If you pay using the wrong rewards card

Restrictive policies on what networks they allow make Costco tricky from a credit card perspective. Basically, you can only use Visa credit cards when shopping in-store. When shopping online, you can only use Visa or Mastercard.

These rules limit which rewards credit cards you can actually use, which can make maximizing your rewards difficult. That doesn’t mean you shouldn’t try. Especially if you spend hundreds of dollars a month at Costco.

If you can find a card with bonus rewards for warehouse clubs, it could work well. Another good option is a travel rewards card with a high flat rate (you can also find cards with 2x points per $1). And when all else fails, a 2% cash back rewards card is a simple and effective compromise.

4. Avoid burial between transports

If you’re like me, you probably prefer to keep your Costco trips sporadic. Perhaps you prefer to visit monthly or quarterly to stock up. (Parking is always a nightmare.) Unfortunately, these habits can cost us.

If you don’t frequent the store, you could be missing out on a ton of great deals. Costco sales may vary by store and most are not sold online. This is especially true for seasonal items that aren’t sold year-round, but it also applies to items that sell better in some regions than others.

Additionally, even discontinued products or general sale items may sell out quickly if there is demand. If you like to bargain at Costco, take an extra trip every now and then to find items in-store.

5. Do not return incorrect purchases

Costco has one of the best return policies, thanks to its extensive satisfaction guarantee. With a few exceptions (major electronics and appliances, tires, etc.), most items can be returned virtually unlimited times.

This also applies to membership fees. If you are not satisfied, you can get a refund.

Considering how generous this policy is, if you don’t like what you buy at Sam’s Club, it makes absolutely no financial sense to keep it. This applies to a two-year-old coffee machine that breaks just as much as moldy cheese a week before its expiration date.

Save every penny

Considering that you pay every year for the pleasure of shopping at Costco, it’s important to know if it’s worth the investment. We hope these tips help you find more ways to save money at Costco, and membership fees pay big dividends.

NOTE: Our top-tier cashback cards now offer a 0% introductory APR through 2025.

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