Costco is bringing back a perk for its executive members. The warehouse club announced that it will now allow executive members to shop one hour earlier than standard members, according to an email sent to employees seen by Business Insider. The perk went into effect on June 30.
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Experts say it’s a smart move on Costco’s part, but whether or not it’s the right move for you depends on your shopping habits. Here’s what you need to know before upgrading your Costco membership.
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Costco’s New Perk
Costco’s new policy will give executive members the chance to shop early from 9:00 a.m. to 10:00 a.m. on weekdays, 9:00 a.m. to 9:30 a.m. on Saturdays and 9:00 a.m. to 10:00 a.m. on Sundays. Costco previously offered this perk at some locations, but it phased out over recent years, according to Costco Insider.
This isn’t the only new perk Costco is offering to its executive members.
The warehouse club will also offer executive members a $10 monthly credit for Instacart orders and $150 worth of additional benefits and savings at Costco services.
“They have tried a variety of tactics to market the executive membership to non-executive home shoppers and the name and the increase in membership cost — despite the benefits — haven’t translated,” Julie Ferris-Tillman, VP and B2B practice lead at Interdependence Public Relations, wrote in an email.
“Turning to the competitive nature of shoppers who already line up at store open to avoid long lines and secure limited product is a logical move,” she added.
Liam Hunt, director of research at IncomeInsider.org, also believes it’s a great move.
“I’m a big fan of Costco’s new policy simply from a business psychology standpoint,” he explained. “It’s a smart strategy because it costs Costco almost nothing to provide, but provides a real sense of value and exclusivity in executive-tier members.”
Is an Executive Membership Now Worth the Money?
A Costco membership starts at $65 per year for its standard Gold Star membership, while the executive membership costs twice as much at $130 per year. According to the company, executive members account for more than 73% of total sales.
Is it worth the money? Ferris-Tillman believes that early access will offer better returns than the current promise of a rebate check at the end of the year.
But according to Hunt, it depends on your spending patterns.
“Whether executive membership is right for you entirely depends on your spending patterns rather than perks like early access,” Hunt explained. You need to spend about $3,000 annually at Costco to break even on an executive membership through the 2% cash back alone, he added.
“That said, early shopping does create a sense of VIP treatment that makes customers feel as if their membership fee is justified. It’s smart marketing, but not a difference-maker when it all comes down to annual spending,” he noted.
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This article originally appeared on GOBankingRates.com: Costco Just Added This Perk for Executive Members — Is Upgrading Worth the Money?
