Michigan Costco Members Won’t Like Membership Changes

Costco, which is a direct competitor to Sam's Club is also making changes to their policies. Not too long ago, we learned that Sam's Club would be changing the policy surrounding their online orders for its members. They will still be offering the service but with some stricter guidelines than what they had before, but they aren't the only wholesale distributors looking to make changes.

A large bulk of Costco revenue comes from the memberships that each member subscribes to year-by-year, so this is where they make the most changes. They have been able to find loyal customers that have stuck with them for years because of their great prices, well really their 1.50 hot dog and drink combo is the real prize. Nonetheless, Costco is about to make another change in the coming months that will affect all Costco members in Michigan and possibly receive tons of backlash.

For the first time in almost a decade, Costco will be raising the price of its membership fees starting on September 1, 2024. Their basic membership will increase by $5 to a total price of $65 per year, meanwhile the Executive Membership will inflate by $10 to $130 a year. Although the Executive Membership is a little expensive, those members will have the opportunity to earn a maximum of $1,250 in rewards annually, which is $250 more than the previous amount.

You're probably wondering the same thing I am, why are they increasing their membership prices? Surprisingly, they are doing well in their sales department and haven't seen too much revenue loss from the COVID-19 pandemic, but they do need to stay competitive with their competitors like Amazon and Sam's Club. With that being said, the main reason they are doing this is to crack down on membership moochers.

They have noticed that people have been hitching a ride on other customers memberships and they want to find a way to nip this in the bud. This is a big deal as the membership revenue is what allows the wholesale distributor to keep their prices affordable for its members. Starting at the beginning of September the prices will rise for Costco owners all over Michigan and North America.

What's your opinions as a Michigan Costco member on the price increase?