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Costco Quarterly Report announcement 

Costco Wholesale (COST) is surging today reporting its fiscal first-quarter earnings. Guggenheim’s John Heinbockel said:at some point in 2017 these benefits, as well as those arising from a membership fee increase, will likely be used to fund investments, price and otherwise, to drive accelerated share gains.


In a quarterly report announcement was a one liner saying sometime in 2017 the cost of Costco membership will increase.  No specifics yet.  Source of this is in the link above.

UPDATE: March 3rd, 2017.  Membership increase $5.00. effective June 1st.

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Most Recent Posts
The last time they raised the fee was in 2011. According to the government inflation calculator, $55 in 2011 is equivale... (more)

samko (Mar. 08, 2017 @ 8:43p) |

Guess that Citibank wasn't paying them enough money to keep the rates low.

forbin4040 (Mar. 08, 2017 @ 11:50p) |

Per Clark Howard:

"You can renew your membership up to 60 days in advance of your actual renewal anniversary, a Costco re... (more)

turtlebug (Mar. 15, 2017 @ 10:11a) |

Costco said: The Company also announced that, effective June 1, 2017, it will increase annual membership fees by $5 for U.S. and Canada Goldstar (individual), Business, and Business add-on members ('Primary' Members). With this increase, all U.S. and Canada Goldstar, Business and Business add-on members will pay an annual fee of $60. Also effective June 1, annual fees for Executive Memberships in the U.S. and Canada will increase from $110 to $120 (Primary membership of $60, plus the Executive upgrade of $60), and the maximum annual 2% reward associated with the Executive Membership will increase from $750 to $1,000. The fee increases will impact around 35 million members, roughly half of them Executive Members."
 


~~Tip of hat to FWF turtlebug
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Thanks. My annual 2% Reward for Costco purchases with my executive membership more than covers the membership cost. Still worth it to be a member for me.

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What about the savings from the new Citibank Visa reduced fees?
Costco said those were suppose to benefit the members.
So, why need a fee increase?

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Benefiting members is vague.
It could mean:
1) Visa is accepted in more places in the US than Amex
2) The interest rate on Visa is less than Amex
3) We get new shiny pop up tents to sell more Visa cards.

You are assuming 'Benefit' means no raise in membership.

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i had auto insurance with them for free road side assistance and its worth around 40 bucks atleast

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anusha123 said:   i had auto insurance with them for free road side assistance and its worth around 40 bucks atleast
  think again.... I shopped around and consistently got better prices (Geico)

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That's true Geico is way cheaper compare to Costco Auto Insurance.

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dealrep said:   That's true Geico is way cheaper compare to Costco Auto Insurance.
  I think it depends where you live. I moved from a large city to a very rural area and my rates went up, almost doubled with every major company online and in person. I was surprised that Costco insurance was so much lower.

As for the membership I don't have my picture on my card. My husband got our membership 11 years ago and I wasn't present. I have never wanted to wait in the line to get my picture taken. I found there are many people who share cards with no pictures and at least our Costco doesn't care or check ID's.

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The new Costco Visa is terrible. We Quit using it. Too many fees and no customer service. The only benefit of the new Visa for me is I can use another brand Visa card at Costco.

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It has fees?

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best way is to stock up on gift cards during 5% chase/discover bonus periods and use those !

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Gwizu2 said:   The new Costco Visa is terrible. We Quit using it. Too many fees and no customer service. The only benefit of the new Visa for me is I can use another brand Visa card at Costco.
  no fees.... I dont see any downside...except there are other cards that give consistent 2% cashback

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Freedom Visa at 5% cashback til the end of the year and pays more quickly - You still get your Costco membership benefits.
Costco Visa reward is a once a year Costco coupon good only at Costco.

Yes there are some flat rate 2% Visas you can use and still get your Costco membership benefits.

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I'm still confused by Gwizu2's comment. What fees? And I got to a live customer service no problem.

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duke5150 said:   What about the savings from the new Citibank Visa reduced fees?
Costco said those were suppose to benefit the members.
So, why need a fee increase?

  
I believe this may refer to Costco saying the switch from Amex to Visa would save them millions of dollars in interchange fees, which some analysts thought would be in the $110 to $220 million range.  The expectation was that these savings would be passed on to both shareholders (with higher profits) and customers (by raising fees farther in the future than they would have otherwise).

As to fees in using the card, there are none to my knowledge except for foreign transactions.  Nearly all cards have fees for foreign transactions, I use the one I have that does not.

As to whether to use a Costco Visa or not, as a Fatwalleter you should use the best card for the purchase you are making.

When buying gas anywhere, I use the Costco Visa and get 4% CB, unless Chase has a quarterly 5% gas offer, but that is NOT good at Costco/buying clubs, is good at other gas stations.  
When eating at a restaurant, I use the Costco Visa and get 3% CB, unless Chase has a quarterly 5% CB offer for restaurants.
When buying at Costco or Costco.com, I use the better of - Chase Visa if 5% quarterly CB (9 months this year).  I should use my Fidelity Visa (2% CB immediately vs. annually) otherwise, UNLESS I am buying an item with a warranty, because Costco (and all Citi cards) add 24 months to nearly all warranties.  They also provide Price Rewind, so if the item might go down in price (i.e. non-food items), I should also use Costco.  Fidelity is too much to remember each time, and I don't spend a fortune at Costco, so I usually end up using the Costco card.  However, if I was spending a lot of money I might switch to Fidelity as I that goes into my Roth IRA, and in a rising market you want to invest sooner rather than later.
I use my Fidelity Visa, 2% CB, everywhere else.

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Thanks. Seems like a money grab given inflation's so low.

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Bad move imho. Mos def will not renew my expired membership

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Here's Costco's full statement on the fee increase:
"The Company also announced that, effective June 1, 2017, it will increase annual membership fees by $5 for U.S. and Canada Goldstar (individual), Business, and Business add-on members ('Primary' Members). With this increase, all U.S. and Canada Goldstar, Business and Business add-on members will pay an annual fee of $60. Also effective June 1, annual fees for Executive Memberships in the U.S. and Canada will increase from $110 to $120 (Primary membership of $60, plus the Executive upgrade of $60), and the maximum annual 2% reward associated with the Executive Membership will increase from $750 to $1,000. The fee increases will impact around 35 million members, roughly half of them Executive Members."

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JW10 said:   Freedom Visa at 5% cashback til the end of the year and pays more quickly - You still get your Costco membership benefits.
Costco Visa reward is a once a year Costco coupon good only at Costco.

Yes there are some flat rate 2% Visas you can use and still get your Costco membership benefits.

  Where is the info on Freedom Visa 5% CB ?  Freedom calendar only show 5% for Gas in 1Q2017. 

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As the  membership fee increases it would be greatly appreciated if Costco would enforce their policy of only up to 2 guests per member and that they must be responsible for children and guests.. Member Privileges

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Domer94 said:   Thanks. Seems like a money grab given inflation's so low.
  The last time they raised the fee was in 2011. According to the government inflation calculator, $55 in 2011 is equivalent to $59.38 today. Not much of a grab, but more of an inflation adjustment. 

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samko said:   
Domer94 said:   Thanks. Seems like a money grab given inflation's so low.
  The last time they raised the fee was in 2011. According to the government inflation calculator, $55 in 2011 is equivalent to $59.38 today. Not much of a grab, but more of an inflation adjustment. 

  Guess that Citibank wasn't paying them enough money to keep the rates low.

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Per Clark Howard:

"You can renew your membership up to 60 days in advance of your actual renewal anniversary, a Costco representative told Team Clark during a phone conversation.So if your renewal anniversary is between June 1 and July 31, then you can renew in April or May and still pay the (old membership price) of $55 for another year ($120 for Executive members)"
 

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