#costco-membership-model

#costco-membership-model

In 2014, Meredith and Robert Bonilla proved that it is possible to get married inside a Costco. After meeting in Costco's freezer section, the Bonillas later received permission from headquarters and hosted a ceremony with around 200 guests.

Boomers are far more likely than any other group to be aware of price increases. When prices go up, they cut back on non-essential items and avoid impulse buys, with just 53% succumbing to them.

On Costco.com, you can pay $40 for a travel service consultation through a company called SafeGard. The process was fairly simple. I paid my fee, and later that day, I received an email with my log-in information for the website. I filled out an online form, detailing my travel plans and vaccine history, and in less than 24 hours, I was sent a personalized PDF suggesting a host of immunizations and medications.

Ultimately, there's not one easy answer; which warehouse club is best for you really just depends on how often you shop, what extra services you want to use, and what you tend to buy from these clubs. But by taking a closer look at the specifics, you might get a better sense of which membership will get you more of what you're looking for.

Costco sells its products with very little markup, choosing instead to make most of its money from membership sales. This business model makes sense: The better deals it has, the more likely people are to want a membership. Memberships at Costco are booming. In the fiscal first quarter of 2026, overall memberships were up 5% year over year to 146 million. And its higher-priced executive memberships were up a stronger 9%.

With members sticking around for the excellent value proposition as well as the $1.50 hot dog combo, it's clear that Costco has pretty much perfected the in-store experience at this point. The 90% renewal rate might just be the floor as the firm opens new stores across the globe while doubling down on e-commerce, perhaps there's room to bump up that renewal rate further.

Costco's Auto Program should be as popular as its $5 rotisserie chicken - but I've learned not too many of its members actually know it exists. I discovered the program this past summer during a Costco grocery run when a pamphlet caught my eye as I was leaving. At the time, I was in the market for a car but putting it off because I didn't want to deal with persistent salespeople or lose a day haggling at a dealership.

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.

It can be difficult to decide between the three major warehouse club chains: BJ's Wholesale Club, Costco, and Sam's Club. For many shoppers, the decision is already made based on convenience - whichever store is closest to you is the one you're likely to subscribe to. But if you're lucky enough to have access to all three, you may find yourself spoiled for choice.

First, we asked fuel market analyst Patrick De Haan at GasBuddy, an app that finds deals, how many gallons the typical American driver buys in a year. He said 600, which works out to roughly 40 purchases of 15 gallons each. We then identified 13 Costco warehouses in metro areas that cover the continental US and compared their gas station prices to GasBuddy's average price for those local markets on the same day.