Costco Sells $150K Diamonds and Babe Ruth Memorabilia to Excite Members

"Costco says unique items continue to play a role in generating excitement for its members. The $150K diamond and the Babe Ruth baseball are not serious revenue drivers. They are conversation starters. They are the reason a member tells their neighbor, 'You will not believe what I saw at Costco this weekend.' That word-of-mouth is priceless, and it keeps the renewal flywheel spinning."

"Costco's retail model is built on something most retailers cannot replicate. Members pay an annual fee just to walk through the door, which means Costco's job is not just to sell you things. It is to make you feel like the membership is worth it every single time you visit."

"When your fee income grows faster than your merchandise sales, members are not just renewing out of habit. They genuinely believe in the value. Worldwide renewal rates hit 89.7%, with 82.1 million paid memberships on the books. Membership fee income grew 13.6% year-over-year to $1.355 billion, outpacing even the strong 9.1% growth in net sales."

Costco's retail model relies on membership fees to create value perception beyond standard merchandise sales. The company strategically stocks unusual luxury items—such as a $150,000 diamond ring and a $20,000 Babe Ruth autographed baseball—to generate excitement and word-of-mouth marketing among members. These items serve as conversation starters that justify membership renewal rather than significant revenue contributors. Costco's Q2 FY2026 results demonstrate the model's effectiveness: worldwide renewal rates reached 89.7% with 82.1 million paid memberships, and membership fee income grew 13.6% year-over-year, outpacing net sales growth of 9.1%. Strong financial performance included $69.6 billion in revenue and 13.8% net income growth, with e-commerce comparable sales surging 22.6%.

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