3 Costco Traps to Avoid as a New Member

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New to Costco? Read on to see how you can avoid some major rookie mistakes. 

Shopping at Costco could result in a world of savings for you. By purchasing items you use regularly in bulk, you might be able to lower your credit card bills without having to cut back on the things you need.

But if you’re new to Costco, there are certain traps you might succumb to. Here are three in particular you should try your best to avoid.

1. Not signing up for an executive membership right away

A basic Costco membership costs $60 a year, while an executive membership costs $120. If you’re new to Costco, you might assume that it’s best to start with a basic membership and see how that goes rather than commit to the more expensive option right away. But actually, it could pay to get an executive membership the moment you join Costco.

With an executive membership, you get 2% back on your Costco purchases. And you might as well start getting that cash back the moment you begin shopping at Costco.

If you’re worried you won’t spend enough at Costco to make the upgrade to the executive membership worth it, you should know that you can always downgrade your membership after the fact, and Costco will refund you the difference. In other words, if you don’t rack up enough cash back to justify the extra $60 you’re spending on an executive membership, Costco will issue you a refund to make you whole. (If you only make back $40, for example, Costco will refund you $20.) So all told, there’s really no risk involved.

2. Not sampling items before buying them

There’s a reason Costco gives out samples of many of the products it has in store — it wants to entice customers to try new things and make the decision to bring them home. You might think that taking advantage of those samples is being greedy or grubby, but it’s not.

Rather, it’s a smart move, because while you might think you’ll enjoy a soup or cheese or snack you’ve never tried before, in reality, you might find it less than appealing. And you’re better off discovering that before you spend $20 on a bulk supply.

Better yet, if you have kids who are picky eaters, make them sample new items at Costco before buying them. That way, you can get their approval before handing over your money.

3. Shopping when everyone else does

Weekends tend to be crowded at Costco, which shouldn’t come as a shock. But battling crowds at Costco could mean missing out on some terrific deals.

Sometimes, wandering the aisles of Costco will lead you to discover low-cost products you didn’t realize the warehouse club giant stocked. But if you’re in a jam-packed store, you’ll be less likely to want to browse, and you’ll be more likely to want to get in and get out quickly.

Incidentally, if you’re stressed over crowds, you may not pay as close attention to the items you’re putting into your cart. That could lead you to grab food items with a shorter expiration window when there are items with a better date nearby on the shelf.

Getting a Costco membership could end up saving you a nice amount of money. But be careful to avoid these traps when you’re first starting out.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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