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Costco Executive Status Worth it?
Old 08-04-2014, 04:11 PM   #1
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Costco Executive Status Worth it?

I get harassed reminded every time I go to Costco that I can upgrade to Executive status. I was informed that I'd spent over $4K there already this year and am a prime candidate. Given that I use my Fido AmEx there and get 2% back on all store purchases and 3% on gasoline, what is the advantage?
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Old 08-04-2014, 04:18 PM   #2
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If possible, watch for promotions. The Exex card was $110 with 2% cash back when we joined vs $55 with no cash back for the regular membership. But they were running a promotion offering $55 cash back as soon as we spent $250 at Costco. So it became a no-brainer for us.

The cash back breakeven is $2750/yr or about $230/mo as you undoubtedly realize. If you've spent $4000 already...
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Old 08-04-2014, 04:22 PM   #3
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No doubt it is if you spend enough. We get a rebate annually that more than covers the $110 fee. With the $55 membership, you get nothing. So ours pays for itself plus some.
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Old 08-04-2014, 04:52 PM   #4
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No doubt it is if you spend enough. We get a rebate annually that more than covers the $110 fee. With the $55 membership, you get nothing. So ours pays for itself plus some.
Yep, I look at it as free membership...
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Old 08-04-2014, 04:52 PM   #5
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.......... With the $55 membership, you get nothing. ........
OK, this was the part I missed. So, I would get 2% back from Costco, plus 2% on the Fidelity AmEx card, correct?
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Old 08-04-2014, 05:03 PM   #6
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OK, this was the part I missed. So, I would get 2% back from Costco, plus 2% on the Fidelity AmEx card, correct?
Yup.
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Old 08-04-2014, 05:21 PM   #7
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And just FWIW, as I understand it for those with the Costco AmEx card (vs Fidelity), additional cash back (above the Costco 2% Reward Cert) is as follows:
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Old 08-04-2014, 06:11 PM   #8
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And just FWIW, as I understand it for those with the Costco AmEx card (vs Fidelity), additional cash back (above the Costco 2% Reward Cert) is as follows:
Thanks. I use my Costco AmEx to buy Costco gasoline and the Fido AmEx for about everything else.
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Old 08-04-2014, 06:11 PM   #9
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I get harassed reminded every time I go to Costco that I can upgrade to Executive status. I was informed that I'd spent over $4K there already this year and am a prime candidate. Given that I use my Fido AmEx there and get 2% back on all store purchases and 3% on gasoline, what is the advantage?
The first time we upgraded, they basically gave us enough usable coupons (for us) that we covered the upgrade.

The 2% rebate more than covered it the next year.

The cash back on the Costco Amex pretty much pays for our regular membership, even though we use it mostly for gas. It helps when you have an RV to fill up now and then to max out on the cash back.

And we get another 2% rewards because we use our Fido Amex at the register.

And we got that $55 rebate too when we got the Costco Amex, so first year expenses were reimbursed right away on both fronts.

So it works for us.
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Old 08-04-2014, 10:36 PM   #10
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I do the bulk of my grocery shopping at costco - and like the BIG checks I get. I use the costco amex and executive - so I get checks for both.
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Old 08-04-2014, 10:42 PM   #11
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At the Costco where I shop, I get in at 10 AM with the Executive membership vs 11 AM with the regular. That and the 2% rebate are worth it to me.
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Old 08-04-2014, 10:53 PM   #12
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And I believe they guarantee that you'll at least come out even and will refund the difference in the memberships if you don't. You really can't lose.
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Old 08-05-2014, 06:49 AM   #13
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Like others I have the Costco Executive membership which pays for itself with the rebate but use another Amex card.
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Old 08-05-2014, 07:30 AM   #14
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If you plan on major purchases it can be worth it. We buy it when we're making home improvements, buying new TV's etc.....those years we get more money back.....other routine years it's been a wash.....measure what you've spent, how much you spend in a typical year and then decide.
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Old 08-05-2014, 08:02 AM   #15
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Might want to review the terms/conditions here: Executive Rewards

Notable exclusions are gas at Costco and certain services on costco.com
Basically, the 2% is on Costco purchases, not all purchases on your Costco AMEX card.
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Old 08-05-2014, 09:12 AM   #16
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I do the bulk of my grocery shopping at costco - and like the BIG checks I get. I use the costco amex and executive - so I get checks for both.
+1
It pays me to have the Executive membership since I get cash back from both the membership and Amex. Even if I don't spend a dime at Costco they will still give me the difference between regular and Executive membership so it really doesn't cost any more than a regular membership. I like many of the Costco (Kirkland) products because of the quality, cost, and return policy. For the past few years I have received back at least double the cost of the Executive membership. Since they don't have gas at our Costco I use the card for a rebate at any gas station that accepts Amex.

I liked their business model enough to buy stock in the company a few years ago. It now sells for more than 2X what I purchased it for. So buy big and buy often.

Cheers!
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Old 08-05-2014, 09:41 AM   #17
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Let me get this straight. When one is an Executive member of Costco and buys things there with his/her Fidelity Amex card, one can get 2% back from Costco and another 2% back on the Amex card (except for the excluded products). So, it amounts to about a 4% discount on most Costco purchases. Right?
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Old 08-05-2014, 10:10 AM   #18
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And I believe they guarantee that you'll at least come out even and will refund the difference in the memberships if you don't. You really can't lose.
This is the part I can't find on their website.
I don't spend quite enough at Costco to make the 2% rebate pay for the extra $55 membership cost, so I've never considered the executive membership. If Buckeye's understanding is correct, can someone point me to this in writing?
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Old 08-05-2014, 10:32 AM   #19
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When I was supporting a family I had the executive card and it easily paid for itself. Now I find myself using Costco less and less so I dropped down to the $55 level. For me the problem with Costco is. it is very easy for me to succumb to their promotions and specials. I always seem to see some new product or gadget or DVD or something that jumps into my cart. They are all great values, but in the end I don't really need or use them. My wife cringes when I go to Costco knowing I will come home with something extra. So now I find myself going there less and less. For the weaker among us, sometimes smaller quantities are bigger bargains in the long run. Costco doesn't make money by being stupid.
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Old 08-05-2014, 10:41 AM   #20
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Let me get this straight. When one is an Executive member of Costco and buys things there with his/her Fidelity Amex card, one can get 2% back from Costco and another 2% back on the Amex card (except for the excluded products). So, it amounts to about a 4% discount on most Costco purchases. Right?
Right.

Although since you pay an added $55 for the 2% rebate, it takes $2750 to 'break-even' (I don't have a ref, but I recall seeing that they will reimburse the portion of the $55 that doesn't get offset). So you can think of $5500 in purchases as a 1% average discount, right?

So it's not that big a deal unless you buy some big ticket items. I think we just get some token amount back most years, but it's all positive, so why not.

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