Costco has a reputation for bulk savings, but many shoppers overlook lesser-known ways to stretch their dollars. Over the years, I’ve discovered strategies that go beyond clipping coupons or waiting for sales. Here are 10 effective ways to cut costs at Costco while getting the most value for your money.
Table of Contents
1. Compare Unit Prices, Not Package Prices
Bulk purchases can be tricky. Sometimes, a larger package doesn’t translate to better value. I always check unit prices, which are listed on Costco’s price tags. This simple step helps me determine whether an item truly offers savings compared to regular grocery stores.
| Item | Costco Price | Unit Price | Grocery Store Price | Grocery Store Unit Price |
|---|---|---|---|---|
| Laundry Detergent (150 oz) | $19.99 | $0.13/oz | $14.99 (100 oz) | $0.15/oz |
| Paper Towels (12 Rolls) | $21.99 | $1.83/roll | $10.99 (6 Rolls) | $1.83/roll |
| Almond Butter (27 oz) | $7.99 | $0.30/oz | $5.99 (16 oz) | $0.37/oz |
Sometimes, smaller packages at a grocery store may be a better deal, especially when on sale. I always cross-check before assuming Costco is cheaper.
2. Use the Price Code to Your Advantage
Costco uses a pricing code that indicates markdowns. If an item ends in .97, it means it’s on clearance and won’t be restocked at the same price. I look for these tags because they often represent the best deals.
Other codes include:
- .00 or .88: Manager markdowns, usually for damaged or returned items.
- .49 or .79: Special pricing set by the manufacturer, sometimes indicating limited-time deals.
- .99: Regular price, not discounted.
I focus on items ending in .97 or .00 because they offer the biggest discounts.
3. Time Your Purchases to Seasonal Clearance
Costco rotates inventory aggressively. Seasonal products like outdoor furniture, holiday decorations, and apparel get steep discounts when the season ends.
| Seasonal Item | Original Price | Discounted Price (Clearance) | Savings |
|---|---|---|---|
| Patio Set (Spring) | $1,299.99 | $799.97 | $500.02 |
| Halloween Costumes (Fall) | $29.99 | $9.97 | $20.02 |
| Christmas Trees (Winter) | $199.99 | $99.97 | $100.02 |
I plan ahead and buy off-season whenever possible.
4. Skip the Pre-Packaged Produce
Costco sells both pre-packaged and bulk loose produce. While pre-packaged may seem convenient, I find that loose produce is often cheaper per pound and allows me to buy only what I need. I compare prices per pound before making a decision.
| Produce | Pre-Packaged Price | Loose Price per Pound | Savings |
|---|---|---|---|
| Apples (5 lbs) | $7.99 ($1.60/lb) | $1.29/lb | $0.31/lb |
| Bananas (3 lbs) | $1.99 ($0.66/lb) | $0.59/lb | $0.07/lb |
| Bell Peppers (6-pack) | $6.99 ($1.16/pepper) | $0.99 each | $0.17 each |
I always check for loose alternatives before grabbing pre-packaged produce.
5. Avoid Name Brands When Kirkland Signature Exists
Costco’s private label, Kirkland Signature, offers the same or better quality than name brands at a lower price. I’ve tested this repeatedly and found that Kirkland Signature products almost always provide better value.
| Product | Kirkland Price | Brand Name Price | Savings |
|---|---|---|---|
| Almond Milk (64 oz) | $6.99 (2-pack) | $9.99 (2-pack, Silk) | $3.00 |
| Organic Maple Syrup (33.8 oz) | $13.99 | $17.99 (Mrs. Butterworth’s) | $4.00 |
| Laundry Pods (120 ct) | $19.99 | $29.99 (Tide) | $10.00 |
I regularly opt for Kirkland Signature and rarely notice a difference in quality.
6. Check for Instant Savings Instead of Rebates
Costco offers instant savings on select items without requiring coupons or mail-in rebates. I check Costco’s website or the in-store signage to see if a product has an instant discount.
Unlike other retailers that require rebates, Costco’s instant savings apply at checkout, ensuring I don’t have to deal with submitting claims or waiting for cashback.
7. Use Costco’s Price Adjustment Policy
If I buy something and it goes on sale within 30 days, I can request a price adjustment and get the difference refunded. I save my receipts and monitor prices, especially on electronics and high-ticket items.
8. Buy Gift Cards at a Discount
Costco sells gift cards at a discount, often 20% off or more. I use these for restaurants, entertainment, and travel expenses.
| Gift Card | Face Value | Costco Price | Savings |
|---|---|---|---|
| $100 Airbnb | $100 | $79.99 | $20.01 |
| $50 Domino’s | $50 | $39.99 | $10.01 |
| $100 SpaFinder | $100 | $74.99 | $25.01 |
This trick helps me cut costs on things I already plan to purchase.
9. Leverage the Executive Membership for Cash Back
Costco offers two membership levels:
- Gold Star ($60/year)
- Executive ($120/year) – includes 2% cashback
If I spend at least $3,000 annually, the 2% cashback from the Executive membership covers the upgrade cost. Since I buy groceries, gas, and household items at Costco, I easily surpass this threshold.
| Annual Costco Spend | 2% Cash Back | Net Membership Cost |
|---|---|---|
| $3,000 | $60 | $60 (break-even) |
| $5,000 | $100 | $20 profit |
| $8,000 | $160 | $40 profit |
For heavy shoppers, the Executive membership pays for itself.
10. Fill Up at Costco Gas Stations
Costco gas is consistently cheaper than other stations. The savings add up significantly over time, especially for those who drive frequently.
| Gas Station | Price per Gallon | Monthly Cost (50 gal) | Annual Cost (600 gal) |
|---|---|---|---|
| Costco | $3.25 | $162.50 | $1,950.00 |
| Other Gas Stations | $3.75 | $187.50 | $2,250.00 |
| Savings | $0.50/gal | $25/month | $300/year |
By consistently refueling at Costco, I save hundreds of dollars annually.
Final Thoughts
Shopping at Costco can lead to substantial savings when done strategically. By comparing unit prices, understanding markdown codes, and leveraging membership perks, I maximize my value without overspending. Implementing these 10 tactics has significantly reduced my costs, proving that smart shopping beats impulse buying every time.
