Costco members in Michigan won’t like membership changes

Costco, a direct competitor of Sam’s Club, is also making changes to its policies. Not long ago, we learned that Sam’s Club would be changing its policies for online ordering by its members. They will continue to offer the service, but with stricter policies than before. However, they are not the only wholesalers looking to make changes.

A large portion of Costco’s revenue comes from the memberships that each member subscribes to year after year, so that’s where most of the changes are being made. They’ve been able to gain loyal customers who have stuck with them for years because of their great prices. Well, actually, their hot dog and drink combo for 1.50 is where the real win is. However, Costco is facing another change in the coming months that will affect all Costco members in Michigan and potentially generate a lot of backlash.

For the first time in nearly a decade, Costco will increase membership fees starting September 1, 2024. The base membership price will increase by $5 to a total of $65 per year, while the Executive membership price will increase by $10 to $130 per year. Although the Executive membership is a bit expensive, these members will have the opportunity to earn a maximum of $1,250 in rewards annually, which is $250 more than the previous amount.

You’re probably wondering the same thing I am: why are they raising their membership prices? Surprisingly, sales are going well and they haven’t seen too much of a drop in revenue due to the COVID-19 pandemic, but they need to stay competitive with their competitors like Amazon and Sam’s Club. The main reason, however, is to crack down on member scroungers.

They’ve noticed people taking advantage of other customers’ memberships and want to find a way to nip it in the bud. This is a big deal because the revenue from memberships allows the wholesaler to keep its prices affordable for its members. Starting in early September, prices will go up for Costco owners across Michigan and North America.

As a Costco member in Michigan, what do you think about the price increase?