Membership Costs
- Gold Star (Basic): $65/year — Access to warehouse and Costco.com
- Executive: $130/year — Everything above plus 2% back on purchases (up to $1,250/year)
The Executive membership pays for itself if you spend $6,500+/year at Costco ($541/month). The 2% reward would cover the $65 upgrade cost.
Where You Save the Most
Gasoline (Biggest Savings for Most)
Costco gas is typically $0.20-0.40 cheaper per gallon than nearby stations. If you fill a 15-gallon tank twice a month, that's $72-144 in annual savings on gas alone—more than paying for the basic membership.
Groceries
Costco's prices are typically 20-40% lower than traditional grocery stores on comparable items. Key categories with the best savings:
- Meat: 20-30% cheaper, especially organic and prime cuts
- Cheese: Dramatically cheaper than grocery stores
- Eggs: Often half the price of regular grocery stores
- Olive oil, nuts, maple syrup: Best prices you'll find
- Kirkland Signature products: Store brand quality rivaling name brands at 30-40% less
Pharmacy
Costco pharmacy consistently ranks among the cheapest for prescription medications—often 30-50% less than CVS or Walgreens. Note: You don't need a membership to use the pharmacy (by law), but members get additional discounts.
Optical
Eye exams cost $75-90 (vs $100-150 elsewhere), and glasses/contacts are significantly cheaper. Annual contact lens supplies can save $50-100 versus online retailers.
Other Services
- Tires: Competitive pricing with free installation, rotation, and balancing for life
- Travel: Costco Travel offers excellent package deals, especially for all-inclusive resorts
- Auto buying program: Pre-negotiated prices below dealer invoice
- Home/Auto insurance: Costco-partnered rates are often 10-15% below market
Who Should Get a Membership
It's Worth It If:
- You have a family of 3+: Bulk buying makes sense with higher consumption
- You have a car and drive regularly: Gas savings alone cover the membership
- You have storage space: Bulk items require pantry/freezer room
- You buy household staples in large quantities: Paper towels, detergent, etc.
- You'd use additional services: Pharmacy, optical, tires, or travel
Skip It If:
- You're single or a couple with limited space: Bulk items may go to waste
- No Costco is convenient: Traveling far eats into savings
- You're an impulsive shopper: Costco's treasure hunt layout encourages unplanned purchases
- You don't have transportation: You need a car for the warehouse experience
Costco vs. Sam's Club vs. BJ's
- Costco: Best prices overall, highest quality store brand (Kirkland), fewest locations
- Sam's Club: More locations, Scan & Go app for faster checkout, Walmart integration
- BJ's: Accepts manufacturer coupons (others don't), smaller pack sizes available
The Bottom Line
For most families, Costco membership easily pays for itself through gas savings alone. Add in groceries and services, and the value is substantial. Single people and couples can still benefit if they have storage space and shop strategically. The 100% satisfaction guarantee means you can cancel anytime for a full refund if it doesn't work for you.