Costco is a wholesaler providing a wide variety of merchandise and gas across its membership-only clubs.
3 different types of memberships are offered —
- Executive Membership (annual fee: $110)
- Business Membership (annual fee: $55)
- Gold Star Membership (annual fee: $55)
As a starter, the Gold Star membership is most appropriate, though it comes with an annual fee of $55 ($4.58 per month).
Why should I spend money on a Costco membership?
While there are many benefits to being a Costco member, the following are two of our favorites —
- Buying items in bulk will result in savings over the long term by reducing the unit cost of the individual item purchased in a larger quantity or as part of a bundle
- Filling up at a Costco gas pump
We believe the savings accumulated as a result of filling up at a Costco gas pump will cover the cost of the annual $55 membership.
As of February 19, 2017, AAA reports the following average gas prices in the USA —
Since prices at Costco pumps will vary by location, let’s use the price listed for Premium near our residence — $2.59.
Assuming a 10 gallon tank, Premium at a Costco pump will cost you $25.90 whereas the national average would cost you $28.01 — yielding a savings of $2.11 for a single fill up. Yes the price of gas fluctuates daily so that number is subject to increase or decrease.
But that is a savings of 7.5% as compared to the national average! Think about that!
If you can save $2 every time you fill up Premium gas, your membership will pay for itself after 28 fill ups which you may achieve in 7 months (assuming you fill up at least 4 times a month).
Besides, Costco’s gas meets the same quality and standards as your typical Shell or BP. (See https://www.costco.com/gasoline-q-and-a.html for more information)
The downside to this is you will always have to fill up at a Costco pump and if you do not live near one, that can be a pain. The time it takes plus the extra fuel used to get to a Costco pump may reduce your actual savings.
Regardless, a penny saved is a penny earned!