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Across Canada, Costco caters to over 10 million members through approximately 100 warehouse locations. The country holds a special affection for Costco; notably, there are almost twice as many stores per person here compared to the United States, with Canadian outlets demonstrating higher profitability based on their total operational revenue. Numerous loyal Canadian patrons who frequently shop at Costco often become deeply committed to the brand after obtaining a membership.

Let's delve into what being a Costco member entails and examine the benefits offered at different membership levels. Is the expense of a Costco membership justified based on your way of life? Does the value outweigh the costs? We're going to uncover this shortly.

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How does a Costco membership work?

Costco memberships, regardless of your country of origin, may be used at any Costco location around the world. To be eligible for a membership, you must meet the following criteria:

18+ years old
Live in a household where no one else currently has a Costco membership
Have a legal/valid Canadian ID or document proving your identity.

Comparing Costco membership tiers

If you are eligible for membership, there are three tiers you may choose from, each of which comes with specific perks and unique pricing. Here's a quick breakdown of each Costco membership tier:

Gold Star

A Gold Star Costco Membership comes with up to two household cards ($65 CAD per year), covering one primary member along with an extra adult aged 18 or over from the same household. It’s the entry-level option among the trio and grants access to buy items across all Costco locations.

If you prefer to shop in bulk, or prefer to make one stop rather than several for the household items you need (ranging from groceries to electronics), a Gold Star Costco membership is a good option for you, and is likely worth the annual investment.

Business

A Costco Business membership allows you to make personal, resale or business-related purchases at any Costco location. Like the Gold Star membership, the annual fee is $65 CAD but includes more perks, such as:

A free household card
Ability to add affiliate cardholders for $65/EA
Purchase for resale

With this plan, members must provide Costco with appropriate resale information to take advantage of the purchase-for-resale perk.

Whether you run your own business or are a buyer for a larger company, a Costco Business membership could be a good option if you frequently purchase a variety of items for business in bulk, or if you regularly buy items for resale purposes.

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Executive

Finally, the Executive Membership is the highest tier of the Costco memberships and costs $130 CAD annually. This includes the standard $65 membership fee plus a $65 upgrade fee, and will provide:

A free household card
Annual 2% reward on qualified Costco purchases (terms and conditions apply)
Additional benefits and greater savings on Costco services (i.e. dental plans, identity protection, business health insurance and more)
Extra benefits on Costco Travel products

Of the three Costco membership tiers, the Executive level clearly provides the most benefits, but it’s important to determine whether the $130 annual membership fee is worth the investment for your personal needs or business before subscribing.

Other Costco membership perks

Did you know that you can use Costco for more than just buying in bulk?

Costco offers a range of special discounts and services to its members, ranging from car insurance, home insurance, identity protection, home loans, personal checks, self-storage, business and personal health insurance, and travel services. They also offer payroll and payment processing services for businesses. Other Costco services to check out include:

Costco online shopping : Costco delivers an online shopping experience that’s similar to what many online retailers offer. You must register for an account to access and place orders for the vast collection of products and services available. Upon registration, your Costco membership is linked to your online account.
Costco Travel: Costco’s collection of travel booking services may be your go-to option if you’re looking to book your next cruise, vacation or car rental. While Costco has a solid reputation, it’s still always a good idea to do some comparison shopping to help you find other competitive rates.
Costco Gasoline: Most Costco locations provide gasoline that’s often priced 6 or 7 cents per litre below most of the leading gasoline retailers. If you refuel frequently, this gasoline discount may be worth the cost of your Costco membership.
Costco Pharmacy: Most Costco locations include a full-service pharmacy offering a wide collection of health-related products and services. Costco members in all provinces but Prince Edward Island and Quebec can order prescriptions online and have them delivered to their home address.
Costco Optical: Most Costco locations also avail an optical department. You don’t need to complete an eye examination from a Costco location to buy eyewear products.
Costco credit card: Costco warehouse locations only accept Mastercard branded credit cards. Members can enjoy the no-annual fee CIBC Costco Mastercard. The card offers up to 3% cash back on eligible purchases.

While Costco’s extensive list of services is impressive, membership will only make sense if you have the means to shop and buy in bulk. Let’s take a closer look at whether a Costco membership ultimately provides a satisfactory return on spending for the average customer.

Is getting a membership to Costco worth it?

A Costco Gold Star or Business membership automatically makes sense if the retailer tends to be your one-stop shop for your grocery, home, tech and business needs. Basically, if you prefer buying in bulk but aren’t completely sure whether you’ll spend enough to benefit from an Executive membership, a Gold Star or Business membership is highly recommended.

Obviously, the biggest advantage of a Costco Executive membership is the 2% cash back savings; however, this 2% cash back only makes sense if you naturally spend enough to reap a good return. You shouldn’t be struggling to spend more when you shop just to make an Executive membership worth it.

Items that can pay off your Costco membership

If you're still unsure about whether a Costco membership offers good value, consider utilizing those products or services that can essentially offset the cost of your membership fee. They might consist of:

Tires: It’s possible you’re overpaying for tires purchased outside of Costco. The pricing on tires within their warehouses offers significant savings. With discounts reaching up to $80 on specific tire models, these savings could easily offset the cost of your Costco membership.
Guarantees: Costco's satisfaction assurance makes shopping at their warehouse clubs even more appealing, potentially justifying the membership fee all on its own. Should you find yourself unhappy with your Costco membership, they will provide a complete reimbursement of the costs involved.
Gas Filling up your vehicle at Costco gas stations can assist you with this. save money on gas Visiting one of its gas stations several times each month could accumulate sufficient savings to cover your Costco membership fee.
Wine: On average, you'll save around $5 per bottle when purchasing wine from Costco. Buying a dozen bottles each month could easily cover the cost of your Costco membership fee.
Movie tickets: Costco might offer you two movie tickets for almost half the price compared to buying them directly at the theater. For those who frequently enjoy watching movies, these savings can accumulate to more than cover the cost of your membership fee.

Enjoy additional perks with the CIBC Costco Mastercard

Curious about extra perks available with membership? The exclusive CIBC Costco Mastercard, designed specifically for Costco members, offers enhanced rewards. Regardless of whether you hold a Gold Star, Business, or Executive membership, this card allows you to earn 3% cashback when shopping at restaurants and buying fuel from Costco, 2% cashback at other gas stations, EV charging points, and through Costco’s online store, plus 1% cashback on every other purchase made both within and outside of Costco.

If you're not interested in the CIBC Costco Mastercard, there are several other excellent alternatives available. Credit cards that work best for shopping at Costco .

Possible return on spending

To figure out if a Costco membership is worthwhile considering the yearly cost, we should assess your anticipated savings from shopping there. For a clearer picture of how much you might save, consider this estimated return on investment: one year as an Executive member using the CIBC Costco Mastercard:

$4,200 CAD = Costco visits ( $84 annual cash back)
$3,500 CAD = restaurants/dining ( $105 annual cash back)
$2,100 CAD = gas ( $42 annual cash back)
$8,800 CAD = misc. ( $58 annual cash back after $3,000 spend)

These annual projections reflect the average Canadian’s spending habits in each category. In simplified terms, an Executive level membership is worth it if you’re spending at least $3,000 per year on Costco visits.

What's best for you matters most

Ultimately, it’s important to sit down and figure out your annual spending before investing in a Costco membership, especially for an upper-level tier like the Executive membership. If your calculations show that you’ll likely spend enough to cover the annual fees and you frequently buy in bulk, a Costco membership could be a great financial option for you.

If you love Costco and believe in its business, it may be worth it to buy Costco stock . Its dividends could fund your membership.

This article Is a Costco membership really worth it? Canadians want retailers to make it easier to buy homegrown originally appeared on Money.ca

Is a Costco Membership Truly Worth the Investment?

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