When you think of Costco, a few key things probably come to mind — bulk food products, low prices, and those enormous warehouse club stores that give you a workout in the course of your shopping.
But there’s a lot more to Costco than that.
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Costco’s business model is different from most traditional retailers’. For one thing, Costco’s inventory is far more limited. While a typical supermarket might carry 30,000 to 60,000 SKUs (stock keeping units), Costco is known to limit itself to roughly 4,000 products at a time.
Related: Costco quietly drops popular product, saddens fans
You might think that number sounds small, given the size of the typical Costco warehouse. But when you really think about it, you won’t find nearly the same selection of products at Costco as you will at a Walmart Supercenter, or even a traditional grocery store.
The reason? Costco likes to have full control over its inventory. If it limits the number of products it carries, it can negotiate lower prices and ensure better quality control.
Groupon offers unbeatable Costco membership deal.
Image source: Hennessy/SOPA Images/LightRocket via Getty Images
Costco’s membership fees are a sticking point for some people
Another way Costco differs from other retailers is that it charges an annual membership fee to get in the door.
Costco does its best to avoid frequent fee hikes. In September 2024, the cost of a basic Gold Star membership rose from $60 to $65, while the cost of an Executive membership increased from $120 to $130.
Related: Costco puts famous New York City brand on shelves
But the last time Costco raised fees prior to September 2024 was June 2017. So it’s hard to complain about an increase, given that seven-year stretch.
At the same time, it’s tough to overlook the fact that it costs a lot more money to get a Costco membership than to sign up for Sam’s Club.
A basic Club membership at Sam’s Club costs $50 a year, while an upgraded Plus membership costs $110.
Sam’s Club also commonly offers promotions that make it possible to join at a lower price point. Costco, as a general rule, does not discount memberships. Instead, it strives to offer enough value to make those full-priced memberships worth it.
Related: Costco vs. Sam’s Club: Memberships & product prices compared
Groupon offers amazing limited-time Costco deal
If you’ve been thinking of joining Costco but don’t love the idea of paying $65 for a basic membership, there’s great news.
If you sign up for a Costco membership through Groupon between now and June 22, you’ll be eligible for a free $50 digital Shop Card at Costco to use online or for in-store purchases.
Related: Costco members angry over very personal product change
A Shop Card is Costco’s version of the store gift card, and you can use a Shop Card to purchase pretty much anything.
Granted, one place you can’t use a Shop Card is the Costco food court.
Most Costco locations have adopted kiosks where you enter your order on a screen instead of ordering from a store employee, and those kiosks are not set up to accept Shop Cards as payment.
But for the most part, signing up through Groupon means you’re effectively getting a Costco Gold Star membership for just $15 your first year. It’s hard to beat that deal.
Now if you’re already a Costco member and your fee is coming up for renewal, you may be inclined to jump on this deal. But not so fast.
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Unfortunately, the offer is only valid for new members, as well as those whose previous memberships lapsed at least 18 months ago. You also can’t use this Groupon offer to upgrade an existing membership from Gold Star to Executive.
But for anyone looking to take the leap, it’s a great opportunity to join Costco at what’s essentially a fraction of the cost.
Maurie Backman owns shares of Costco.
