Costco's $130 Premium Membership Becomes Surprising Status Symbol

Costco's premium membership is becoming the new cool-kid card, with nearly 40 million people now paying $130 per year for executive status at the wholesale giant.

The executive membership costs $65 more than the basic $65 gold membership. What do you get for the extra money? Members earn 2% cash back (money returned to you) on all Costco purchases, paid once a year as a store certificate. They also get to shop one hour early before regular members, avoiding crowds.

A viral video by social media stars Penn and Kim Holderness pokes fun at the "executive" title, showing Penn arriving at Costco in a suit and tie, pretending to get VIP treatment. The joke? There's no actual VIP experience - no special lounge, no free hot dogs, just the same warehouse shopping with a fancier black card.

But the numbers tell an interesting story: • Executive memberships grew 9.1% last year • Regular memberships only grew 5.2% • You need to spend $3,250 per year at Costco for the 2% rewards to cover the $65 upgrade cost

Why does Costco push the premium membership? The company makes billions from membership fees alone. Executive members also tend to shop more often and spend more money, making them extra valuable customers. Even if the 2% reward cancels out the upgrade fee, Costco still wins from increased shopping.

The bottom line: While it's not really a VIP experience, many shoppers find value in early shopping hours and cashback rewards. Just do the math first - if you don't spend at least $3,250 yearly at Costco, stick with the basic membership.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/is-a-130-costco-executive-membership-the-new-vip-status-7d7585f5?mod=mw_rss_topstories