A lot of people sure like it — including a personal finance guru.
- Costco is known for its commitment to affordable prices.
- A Costco membership may be one of the wisest financial decisions you make this year because the membership offers great value and customer service.
Costco is one of those stores where you really don’t know what you’re missing until you start shopping there. And you can’t start shopping there until you start paying for a membership.
The cost of a basic Costco membership is now $60. An upgraded executive membership will cost you double, but you’ll also get 2% cash back on all Costco purchases you make, like how you can get 2% cash back on a credit card. So if you shop at Costco often, an executive membership can make a lot of sense.
Now, if you’re new to Costco, you’ll probably want to start with a basic membership and see how it goes. And if you’ve been itching to join Costco, I would absolutely encourage you to get a membership, especially if you have a warehouse club store near your home.
My family routinely saves a great deal of money by shopping at Costco. But don’t take my word for it. Financial guru Ramit Sethi is also a big fan of Costco. He even went so far as to tweet about what a wonderful business. And here’s why it’s true.
It’s all about value
The reason so many people love Costco has to do with the savings and customer service the warehouse club giant is known for. Not only does Costco aim to offer competitive prices, but it also goes above and beyond to ensure customers are satisfied with the items they have purchased. And if not, Costco has a very generous refund policy.
Costco is so committed to providing savings that if it can’t do that, it simply won’t put a certain item on its shelves. Sethi quoted Jim Sinegal, co-founder and former CEO of Costco, in his tweet as saying, “We need to be able to show a savings on everything we sell. If we can’t show a savings, we we won’t keep it.”
This is a pretty solid approach to delivering value. Many retailers would have no qualms about stocking an item that is overpriced and making a profit from it. But it’s clear that Costco doesn’t want to work that way.
In fact, if you’re an avid Costco shopper and you’ve ever noticed that some of the products you bought there are no longer in stock, the reason why could be a cost increase. Costco may have recalled those items to avoid a scenario where you’re not getting great value for your money.
A wise financial move
When I first joined Costco, I was skeptical about the savings involved. But now that I’ve been a member for over a decade, I can safely say that shopping at Costco helps me feed my family and maintain my home for less money.
If you’re on the fence about joining Costco, it might be worth it to be a member, especially at a time when food costs have skyrocketed due to inflation. You’ll likely find that your membership pays for itself, and that shopping at Costco helps stretch your income during these tough economic times.
Even if you’re not struggling financially, everyone likes to save money. And Costco’s core business model is designed to help you do a lot of that.
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