We had to renew our Costco membership this weekend. They sold us on upgrading to the executive membership. See my fancy new black card! It costs an extra $50 but you get 2% cash back on everything you buy at Costco. Which is pretty cool. Plus I get to go at 10:00 in the morning rather than having to wait til 11:00 when it opens for all the “normal” people. Which is way easier for me.
We normally spend about $100 a month just on groceries, so if we buy any big stuff, like stuff for my brand new Wii, it could put us over the $2,500 we need to make $50. We also buy tires and Christmas presents for the kids there. I bet over the year we could come pretty close to spending another $1,300. Especially if my husband gets his wish and we buy a new plasma TV for the living room.
But the cool part is that the program is risk free. If you don’t get at least $50 back they refund you the difference. So if our check is only $40 then they give us $10 back from our membership. So really, might as well do it, because the worst you can do is break even.
I can’t help but think, why do they offer a risk free cash back program. Where is the benefit for them? It didn’t take long for me to figure it out. I’ve been an executive member for about 5 days now and I’ve thought of several things I should start buying at Costco. Plus I automatically take 2% off the price of everything there. I need to stop doing that. The first $2,500 I spend there isn’t extra money anyways, so I shouldn’t be shopping with that in mind.
What we really hope to do is earn $100 a year, that way we can get our entire Costco membership for free. That would be awesome!
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