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Determining can be quite simple.

Main points:

  • Costco charges a membership fee to help offset its costs and keep prices low.
  • Those fees don’t go up right away, but they might at some point in the new year.
  • If fees go up, members will have to evaluate whether it’s worth it to stay with Costco or move on based on the value they get from that membership.

It’s no secret that inflation has battered consumers and forced many to raid their savings accounts just to stay afloat. But everyday consumers aren’t the only ones affected by high costs. Many retailers are struggling with tighter margins now that it’s more expensive to hold inventory and hire staff.

Costco has not been immune to inflation. In fact, in its most recent earnings call, the storage club giant said higher costs had impacted its bottom line.

Fortunately, Costco also managed to grow its membership base nicely in 2022. And as a result, he promised not to raise membership fees for now.

But that could change in 2023. And if that changes, you may wonder if it’s worth keeping your Costco membership or ditching it. The answer, however, really depends on what the fee increase looks like and how much value you’re getting from Costco.

Are fees likely to increase in 2023?

Costco typically raises its fees about once every five years. At this point, it’s been longer than the toll hike. So while Costco isn’t raising its fees this quarter, it’s possible that the cost of membership will go up in 2023.

But it would still make a lot of sense to keep a Costco membership, even at a higher price. For one thing, if Costco were to raise its fees, it’s unlikely to do so dramatically.

Right now, a basic Costco membership costs $60 a year, while an executive membership, which offers 2% cash back on Costco purchases, costs $120. There’s a good chance Costco’s rent hikes won’t increase these numbers by more than $5 and $10, respectively.

So even with executive membership it’s less than $1 a month. This means that if you can afford your Costco membership fairly easily right now, chances are you’ll be able to afford it even if your expenses increase.

It’s also important to remember that the fees Costco charges allow it to offer such competitive prices for its inventory. So while you might pay a little more for the privilege of shopping at Costco in 2023, you might rack up enough savings on your shopping spree to more than offset the $5 or $10 in rent.

It’s all about the value you get

Ultimately, the decision to keep a Costco membership at a higher price will come down to how much value you get out of it. If you shop at Costco often and save a lot of money as a result, the price increase probably won’t be the thing that makes you want to cancel your membership. But if you don’t shop at Costco that often, or have trouble finding the things you need, you can pay to cancel your membership, regardless of whether prices go up in the new year. or hold steady throughout 2023.

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