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Some Costo members find shopping at the warehouse giant a pleasure rather than a chore. And it’s not just about the amazing deals. It’s also about the free samples, the food court, and the treasure hunt feeling that comes with every visit. Simply put, some people are able to maximize their Costco rewards, making their membership more than worth it.
However, paying the annual membership fee doesn’t make sense for everyone. Especially if you don’t have a large household, don’t own a car, or don’t live near a Costco warehouse. Also, Costco is raising membership fees slightly soon. Starting in September, the annual basic (Gold Star) membership fee will be $65, and the Executive membership will cost $130 per year.
Here are four ways to shop at Costco without paying the membership fee.
1. Use Costco gift cards
If you have a friend or family member with a Costco membership, ask them to purchase you a Costco store card. Only members can buy them. Be sure to pay in advance or reimburse the person helping you so that the cost is not left to the person who is helping you. Cards come in denominations of $25, $50, $100, $250 or $500 and are available online or in stores.
Costco Store cards are like a golden ticket to Costco. And the gift card doesn’t have to cover everything in your cart. If you have a $25 card and spend $150, that’s fine. Hand the card over to the cashier, it will be entered into the system and the card value will be deducted. Then you’ll pay the remaining balance — just be aware that you may have to use a debit card or cash. One shopper quoted in Taste of Home reported that she couldn’t use her credit card along with a gift card.
2. Go with a Costco member
Costco members are allowed to bring up to two guests with them while shopping. This can be an easy way to avoid the annual fee, but there are some restrictions:
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You must coordinate your shopping times with your friend who is a Costco member.
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Payment at the checkout is only possible for the member, so you must transfer the money for your purchases to the member.
Since I live alone and don’t drive, an annual membership fee doesn’t make sense for me. However, once or twice a year I go with a friend who is a member. We make it a fun event – especially our pre-Christmas outing in December. I pay for the hot dogs and snacks after shopping as a small thank you.
3. Shop online at Costco
You can shop online at Costco without a membership, but it will cost you more. Not only does this mean you won’t get the in-store discounts, but there’s also a 5% surcharge for non-members using Costco.com.
If you shop through Instacart or Uber, you’ll pay even more. Business Insider analysis found that non-members pay about 30% more on Instacart than members who shop in-store. Let’s say you spend $150 at Costco through Instacart. That same shopping trip might cost you $45 more than a member would pay if they went to a warehouse store.
4. Use Costco for prescriptions and eye exams
Some Costco services, such as prescription drug purchases at the pharmacy, are available to non-members. Non-members can fill prescriptions online or in-store across the country. In a Consumer Reports study a few years ago, Costco performed better on price than many other pharmacies.
Non-members can also get eye exams at Costco’s optical centers, but you must be a member if you want to get the best value when purchasing glasses or contact lenses.
Finally, in some parts of the country, you can buy alcohol at Costco without being a member. In some states, including California and New York, it’s illegal for stores to require people to have a membership to buy alcohol.
Calculate how many members you have
I’ve been pretty vocal about avoiding annual subscriptions and membership fees lately. However, some memberships really do pay off. In addition to the everyday value Costco offers on expenses like gas and groceries, you’re also missing out on certain cost benefits by foregoing the annual fee.
Here are some things to consider:
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Some of the best Costco credit cards offer 2% or 3% rewards. If you shop with a Costco Shop card as a non-member or visit a store with a friend, you won’t earn those credit card points.
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If you shop online, that 5% markup can add up quickly. As a non-member, if you spend more than $1,300 per year (about $110 per month) on Costco.com, the $65 annual fee would pay for itself.
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If you shop through Instacart, you’ll pay a 30% premium, according to Business Insider’s calculations, so even $216 spent shopping this way would be worth a membership.
As a non-member, you can take advantage of Costco’s great prices in a number of ways, especially if you have friends who are also Costco members. But it’s worth doing the math. You may find that paying the membership fee actually makes the most sense.
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We strongly believe in the Golden Rule, and editorial opinions are solely our own and have not been previously reviewed, approved, or endorsed by the advertisers involved. The Ascent does not cover all offerings in the market. Editorial content on The Ascent is separate from The Motley Fool’s editorial content and is produced by a different team of analysts. Emma Newbery does not own any of the stocks mentioned. The Motley Fool owns positions in and recommends Costco Wholesale and Uber Technologies. The Motley Fool has a disclosure policy.
