From gasoline to hot dogs to gold bars, Costco offers a wide range of products. But the CEO says what’s most important is what you carry in your wallet.
“The most important item we sell is the membership card,” Ron Vachris told Fortune.
Costco has 130 million members who pay $60 to $120 yearly for store access.
The Gold Star membership offers warehouse access and deals. The executive membership adds 2% cash back.
Since 2016, membership has grown 50%, generating $4.6 billion last year. Plus, 90% of members renew their memberships.
Only members can shop at Costco, so the store is designed to keep them returning. From affordable gas to rotisserie chicken in the back, Costco ensures your membership feels valuable.
“Everything we do supports that transaction,” Vachris said.
If you’re considering a Costco membership, the choice between $60 or $120 is simple.
With 2% cash back, you need to spend $3,000 to get $60 back. This makes your membership effectively $60.
If you’ll spend less than $3,000 annually, stick with the cheaper tier.