Genre: Opinion/Argumentation

I checked our recent American Express statements and our average Costco bill is $350 per month, about half our monthly grocery budget .  After our last trip to Costco, I took the Executive Membership brochure home to see if upgrading was worth the extra cost. Costco Executive Membership Executive Members receive a 2% reward on most of their annual Costco purchases, up to a maximum of $750 per year.  Here's how the rewards are calculated based on spending: Monthly spending Annual spending Annual reward $200 $2,400 $48 $400 $4,800 $96 $600 $7,200 $144 $800 $9,600 $192 $1,000 $12,000 $240 $2,100 $25,200 $504 $3,125 $37,500 $750 (maximum) You'll earn rewards with most purchases at Costco, however there are a few exceptions including gas, alcohol, tobacco, pharmaceuticals and membership fees. Your reward coupons are mailed to you along with your annual renewal notice.  You can redeem the coupons toward most Costco products, except for the ones mentioned above. Executive Membership Fee The Executive Membership upgrade fee is an additional $55 for Business or Gold Star Members.  This amount is pro-rated based on the number of months remaining on your current membership.  At your next renewal, you're billed a total of $110 plus taxes for the Executive Membership. You can upgrade to the Executive Membership by stopping by the membership counter at Costco, or by calling their toll-free number at 1-800-463-3783. Additional Benefits New Costco members can earn 1,500 Aeroplan miles when they sign-up for the Executive Membership.  You can also take advantage of the following membership perks: Low rates on residential long distance, home phone and internet through Primus Canada Save up to 25% on car rentals with AVIS or Budget Emergency Roadside assistance Real Estate program -- cash rebates and savings for every purchase, sale, legal closing and home inspection Final Thoughts After crunching the numbers, if we upgrade to the Executive Membership we should be able to get an annual rebate of $84 based on our annual spending at Costco.  Since the Executive Membership costs $110 a year, our total membership fee would be about $26 once we cash in the rebate.  That's less than half the cost of the regular membership. Saving $30 a year isn't anything to get excited about, but some of the additional benefits might be worthwhile.  Plus, if we don't earn enough of a rebate to cover the cost of the upgrade ($55), Costco will refund us the difference. It seems like a no-brainer for us to upgrade to the Executive Membership the next time we go to Costco.  Of course, it's important that we don't use the rebate as an excuse to waste money buying things we don't need. 14 Responses to Is The Costco Executive Membership Worth Buying? I do not have a costco membership,they have nothing that I need and can not buy at Superstore,Real Canadian Whole saler or Walmart, The prices are just as good. I use my No Fee MBNA Master Card and have received a cash back of $800.00 since Aug 2011. MBNA gives you 5% on gas and groceries, yes it is limited for up to $600.00/Month spend but this is why my wife has a card as well.That allowes us to get the benefit for up to $1200.00 spend /month on Groceries and Gas.beside that the MBNA gives me 1% an everything else. I got $90 back for paying my dentist bill with my MBNA.If I take your chard monthly spending 1200 = annualy 14400 x 5% = 720.00 Maximum on gas and Groceries with costco it is only $288. for everything over my MBNA's I use my scotia Momentum with a 4% cash back and no limit. When I fill at superstore Gas bar I also get the 3.5 cent /liter I basicaly get about $8.50 per 100 liter fill.BTW. the best Travel Card is the RBC Prefered Gold, not because of the points they actually do much but rather it coveres the most Insurances for traveling including Cancelation Insurance the $110 fee pays for it self fast if one does not need to buy any insurance. @Rudy -- thanks for your comments. Yes, there are many people who feel that shopping at Costco in general isn't worthwhile, let alone getting an executive membership there. I also use the MBNA Smart Cash card, so it's unfortunate that you can only use AMEX at Costco. Note that you get 5% cash back on groceries and gas for the first 6 months; after that it drops to 3% cash back. I agree that the prices for some items at Superstore are just as good, however I find the quality is better at Costco (for the items we buy). After working for General Mills Canada in finance I can say that costco prices are generally always cheaper on a per 100gm basis compared to any other store and they offer unique products that are not available in other Canadian retailers. In regards of the other Benefits. Buy a magig jack $29/year instead of using Primus Go to http://www.arguscarrentals.com/ to get the best prices in Car rentals, better than geting 25% through costco at avis. Competitive rates and Prefered rates does not mean you can not get it cheaper else where.One should still shop around. Sorry I just can't get sold on the costo Idea at all. I do check it out once in a while to see if it is worthwhile but it never is. I've never considered getting a costco membership but will be looking into it now that they are building one a few blocks from our home. Do you have to use a Costco credit card to pay for your costco purchases or would I be able to use my own rewards card and reap the benefits of both rewards programs? We've been shopping at Costco for a number of years now. We use to spend a lot of money there but we have cut back some in the last year. We typically buy paper products and sometimes fresh meat and produce. We also shop on their online store. We actually bought both of our office desks and chairs from costco. I like their furniture and their delivery service is quick. I love shopping at Costco! You do have to watch your prices just like any time you shop but we mostly buy our meat and produce there every week. I'm not 100% sold on the executive membership because we don't spend enough to cover the extra $55 we would have to pay. If you do shop at Costco, the free rebate Amex card is an excellent addition to anyone's wallet. I have had a Costco membership for as long as I can remember. I let it lapse once, thinking I wouldn't miss it, but I was wrong. I'm very careful about what I spend there as some things are not worth buying, but there are other staples I consistently save money on. I also upgraded to the Executive membership as I know that between myself, my mother (who is also on my account) and my daughter (she has 3 large dogs and goes through a lot of food), we will spend at least $200 monthly. I also use their Costco Amex card and get the additional rebate from that. I feel Costco is worth it, but you have to know your prices elsewhere to ensure you don't pay more overall than you need to. I know the discussion is in regards to a Costco membership but I have a comment on a Sam's Club membership. We upgraded to what would be comparable to the Costco executive membership at a similar cost of $100 a year at Sam's. The big draw for us was that we could save 40% off of generic prescriptions at the pharmacy. My son has a prescription that cost $145 generic and so we get it for $87 a month. We recouped the cost of the upgraded membership in one month,and trust me I called all the pharmacies around town first in regards to price. Those without prescription coverage like us may find this beneficial. I just laugh at people who PAY for a membership to shop. Imagine if walmart said...okay if yu want to shop here yu now have to buy a 75 buck membership.Target says " its 75 hert too." What saving??? There isnt one. You just pay yourself with the membership. hahaha " hey look, i save 10 cents on milk here" Its a scam to extract money to decrease overhead and ultimatly increase profits. You get a card to make you feel good, thast you belong top an exclusive club hahahaha People, you get better savings at stores when sales are on.HAHAHA Pay to have priviledge to walk into a store hahaha TOO RICH.