Costco Executive Status Worth it?

[travelover]

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?

 

[Midpack]

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...

 

[Travelwanted]

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.

 

[TrvlBug]

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...

 

[travelover]

.......... 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?

 

[robnplunder]

OK, this was the part I missed. So, I would get 2% back from Costco, plus 2% on the Fidelity AmEx card, correct?

Yup.

 

[Midpack]

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:

 

[travelover]

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.

 

[audreyh1]

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.

 

[rodi]

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.

 

[KB]

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.

 

[Buckeye]

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.

 

[donheff]

Like others I have the Costco Executive membership which pays for itself with the rebate but use another Amex card.

 

[jerome len]

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.

 

[kaneohe]

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.

 

[Badger]

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!

 

[Chuckanut]

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?

 

[braumeister]

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?

 

[CaliforniaMan]

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.

 

[ERD50]

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.

-ERD50

 

[Chuckanut]

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.

Gosh! So That's how all that extra stuff ends up in my shopping cart!

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?

Good point. In my case it is more like 1% given that I have to earn back the fee.

So, this is really Costco's version of Amazon's Prime service. You pay them extra as an incentive to spend more. Why didn't I think of that?

 

[MBAustin]

We were offered it at the checkout one day when we bought a computer, and ended up the year just barely ahead of the game. So went back to the basic the next year. I love Costco (went this morning!) but now with just the 2 of us I only go every 4-6 weeks, and we just don't buy big ticket items that often either.

 

[6miths]

3 teenagers and a 20 year old at home for the summer... totally worth it at this point.

 

[calmloki]

SO claims I go to Costco every other day. She exaggerates. sometimes I stay away for several days in a row. Using the exec card, but paying for a third user as A spiff to the guy who watches our rentals. Have been using the Fidelity Amex card since March at the counter and am looking forward to how it might work out - last year we didn't quite make membership worth it and they said they would only refund difference between basic and exec, not for the difference between basic and added member cost + exec cost. It was a brief lover's spat, but then I had a hot dog and all was well.

 

[JakeBrake]

It's 150 miles to the nearest Costco from my house. So far, I've been able to survive without Costco.

We have two Sam's Clubs within 10 miles.