moneyreallymatters.com

Thanks to Mymoneyblog.com for making me aware of the upcoming Membership fee hike from Costco. I didn’t get any notice from Costco or saw in the club but may be its on the way. Anyway, He also posted a real good analysis on how Costco makes money and still shows profit. Check it out at mymoneyblog.com.

They are planning to increase 10% of the membership fee from Nov 1st, 2011. Is it worth paying extra $10 for Executive members, $5 for Gold & Business members. I would say “Yes” from my family perpective. But depending on your family situation, your decision may vary. I been a member for almost 7 years now and as a Executive member for 4 years now. We buy most of the household items, food stuff and much more. I just got this year refund of 2% for executive of $80+ which means I only need to pay $20 extra for membership for this year.

I also get 3% back for Gas, 1% for everything else on Amex TrueEarning Card which is free for Costco Members. If I take that extra 2% refund on Gas since every other card gives 1% standard, I would say we are getting more out of the membership.

Also the quality doesn’t degrade over the quality except few items. That’s the important thing I like about Costco. They only promote quality products and their KIRKLAND product also matches the Brand quality.

If you are currently a member, I am sure you will not be concerned by the new price hike but many new members might rethink about the price increase comparing SAMS Club. I would say just try for a year and take your decision by comparing the quality, service and offerings of both wholesale club. You will certainly vote for Costco.