One of things that makes Costco unique is its commitment to great value and low prices. Costco’s revenue is heavily dependent on membership club fees. And the reason is so that Costco can use those fees to offer its customers the lowest prices in town.
Costco has maintained the position in the past that if it can’t offer a competitive price on a given item, it just won’t carry that item at all. It’s that simple.
Meanwhile, on a recent earnings call, Costco CFO Richard Galanti was quick to point out that the company is looking to reduce prices for members where it can. And some of those reductions might benefit your personal finances.
There could be additional savings coming your way
Costco is clearly committed to offering low prices on everyday products. But Galanti recently called out the following items whose prices may have recently gone down or will be going down in the near future:
- Reading glasses will go from $18.99 to $16.99
- Kirkland batteries (a 48-count) will go from $17.99 to $15.99
- Pellegrino (a 24-count) will go from $16.99 to $14.99
Galanti also said that members can expect savings on:
- Frozen fruit
- Lawn and gardening products
- Sporting goods
The latter might serve as a lifeline for parents who are buckling under the weight of expensive youth sports. And since many consumers will no doubt be gearing up to tackle their landscaping projects for spring, it’s good to see that there may be discounts on gardening tools and products.
It always pays to compare prices
If Costco continues to do well and inflation continues to moderate, members could see additional price breaks in the coming months. But even if Costco doesn’t broadly lower its prices, in many cases, you’re likely to find that it still has the most competitive price compared to your other retail options.
However, that’s not an assumption you should run with. One of the biggest mistakes Costco members make is figuring that Costco’s price on a given item is the cheapest from the start.
If you’re buying something like milk, which isn’t a huge financial outlay, then in that case, yes, it is OK to just accept Costco’s price and run with it. What’s the most you might possibly save elsewhere? $1? $0.80?
But for bigger-ticket purchases, always compare prices across different retailers to see whose price is the lowest. Also, make sure to track prices at Costco even after you’ve brought your purchases home.
Costco rotates its sale items every few weeks. But it also offers price adjustment for up to 30 days after you buy something.
So let’s say you purchase cereal in bulk for $14.99, and two weeks later, that same item is available for $12.99. All you have to do is go to customer service and request a price adjustment. You don’t even need to have the item with you, as your purchase can be verified using your membership number.
All told, it’s encouraging to see Costco cutting prices. But always pay attention to what you’re paying — at Costco and in general.
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