Costco Looks To Raise Membership Prices
Costco Looks To Raise Membership Prices
Costco’s membership prices are currently at all-time highs, but the company is still looking to raise them. With that in mind, the big question remains: when exactly will Costco implement the cost increase?
Richard Galanti, the company’s CFO told investors on a Q2 earnings call on Thursday that, in their view, “it’s a question of when, not if.” This coming June would mark the sixth anniversary since Costco last raised the price of its Gold Star membership, which currently goes for $60.
Such a timeline is consistent with the company’s past membership price hikes, which typically occur every five years and seven months. For example, the last time Costco increased its membership prices was in June 2017, in the pre-pandemic era.
“Membership growth has remained strong. We ended the second quarter with 68.1 million paid household members and 123.0 million cardholders, both up more than 7% versus a year earlier,” Galanti added.
Perhaps even more impressive than this is the company’s membership renewal rate, which came in at 92.6% in North America and 90.5% worldwide.
Costco also managed to hit $1.027 billion in membership fee income this year compared to $967 million in the year prior, representing an impressive $60 million increase or 6.2%. Such numbers indicate that the wholesale market is doing just fine in these economic times.
Although membership prices will inevitably increase, Galanti assures that the prices of their goods will remain low despite inflation.
“We continue to see improvements in many items. Commodity prices are starting to fall. Not to back to pre-COVID levels...but continue to provide some relief. Things like chicken, bacon, butter, steel, resin, nuts,” he explained to investors.
At the end of Q2, Costco reported a net sales increase of 6.5% from $50.94 billion in 2022 to $54.24 billion this year.
Source: 1
READ MORE
Whether you're struggling to budget or are needing to start budgeting and are looking for a new approach, zero-based budgeting could be a different approach that will have you looking more honestly at your finances.
Any inheritance, although coming with a (sometimes) painful loss, is a great opportunity to invest your money into yourself in some way. Whether that's a vacation, a new home, or in your future. What if you inherited over a million dollars? Here are our suggestions for the unexpected multi-millionaire.
Groceries aren't getting any cheaper. But the way you shop could be quietly costing you more than it should. Ready to keep your cart full and your budget intact?
Whether you're clearing your grandma's house after she's passed on or simply decluttering, there are so many vintage items worth big bucks that most people just throw away. Do some research before discarding anything that may have some value. You could be throwing out thousands of dollars worth of vintage valuables.
If you've finally hit 65 or 70 and think this will be the year you'll retire, congratulations! But before you take that monumental step of giving up work for good, here's your must-do retirement checklist.
Nothing in the stock market is guaranteed. It's a gamble—and even the people that know the most and understand it the best often lose lots of money. But there is also the opportunity to make lots of money if you make the right choices/guesses/get lucky. Like if you'd bought any of the following stocks...
Disclaimer
The information on MoneyMade.com is intended to support financial literacy and should not be considered tax or legal advice. It is not meant to serve as a forecast, research report, or investment recommendation, nor should it be taken as an offer or solicitation to buy or sell any securities or adopt any particular investment strategy. All financial, tax, and legal decisions should be made with the help of a qualified professional. We do not guarantee the accuracy, timeliness, or outcomes associated with the use of this content.
Dear reader,
It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.
Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!
Warmest regards,
The Moneymade team
