Here’s How to Get Costco to Pay for Your Annual Membership

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Costco won’t officially give you a membership for free. But read on to see how you can snag one anyway. 

Many people love Costco and find shopping there to be a giant source of savings. But then there are those people who grumble about the membership fees — to the point where those fees deter them from joining.

A basic Costco membership costs $60 a year, while an Executive membership costs $120. These levels are slightly higher than Sam’s Club, which charges $50 for a basic membership and $110 a year for a Plus membership.

Plus, Sam’s Club commonly offers discounted memberships as promotions throughout the year. That’s a practice Costco doesn’t tend to employ. So if you’re looking for a cheaper Costco membership, it’s going to be hard to come by.

That said, there’s one trick you can employ to get Costco to pay for your annual membership. It’ll require you to spend a certain amount of money at the store during the year, but it can be done.

When your cash back covers your Costco membership fee

The reason Costco’s Executive membership costs twice as much as a basic one is that it gives you 2% cash back on your Costco purchases. And if you do a lot of shopping at Costco, that cash back can really add up.

If you spend $3,000 a year at Costco, you’ll get $60 back from your Executive membership. That’s enough to cover the cost of your upgrade from a basic membership. But if you spend $6,000 a year at Costco, your Executive membership will give you $120 back. And that’s enough to cover the cost of your upgraded membership in full.

Hitting the $6,000 mark may be easier than expected

You may be thinking, “How on earth am I going to spend $6,000 a year at Costco?” And to be clear, you should not force yourself to spend money on things you don’t particularly need or want simply to snag cash back that covers your membership fee. However, you may find that making certain purchases through Costco allows you to hit that threshold pretty easily.

For one thing, travel packages booked through Costco are eligible for cash back. So are purchases of appliances and electronics. So if you have a number of bigger-ticket items on your list, buying them at Costco could make sense not just from a cash back perspective, but also, because Costco offers great prices and service (like a second-year warranty on all laptops, for example).

Costco also offers a wide range of furniture — and if you don’t see something you like at your local store, you can look online for a much wider range of inventory. If you’ve been saving for a new living and dining room set, buying those things at Costco could get you to $6,000 in spending.

Plus, if you have a larger family to feed and shop at Costco weekly, you might easily spend $120 per trip on groceries and household essentials alone. At 50 weeks a year (because it’s fair to assume you’ll skip a couple of weeks), that’s $6,000 right there.

A Costco membership could offer you and your family a lot of value. And while you may not get a discount on that membership when you sign up, if you spend enough at Costco, you might be able to effectively get the cost of your membership covered in full — especially if you’re strategic in the way you shop.

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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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