quote:

Originally posted by bigdeal:
IS that reward generated on a Costco VISA card or on the account itself? I didn't opt to get a Costco VISA given I already have a rewards card I use that generates about the same benefits.

The 2% of all (eligible) purchases is sent to Executive Members via a check (Costco check really because you can't use it anywhere else). That check can be spent at Costco however you would like. Take it to member services to use to renew your membership, or cash it out, or apply it to whatever purchase you are making at the time you use it. We just got ours in the mail today for all of our purchases this year. $176 until you realize I had to spend $8800 to get it back! So for my example, I'll renew @$120 and use the other $56 for that weeks groceries and other purchases.

There is no need to worry about not having the Citi Visa offered by Costco, if you are an Executive Member, you'll get your check.

I cancelled my Costco Citi Visa card today. Didn't realize they are anti's.

Costco accepts ALL Visa, so I applied and got approved for Chase Freedom Visa.

per neatorama .com

9. Costco makes virtually no profit on the stuff it sells

Okay, this requires a bit of explanation: Costco typically marks up its goods a maximum of 14% over its cost (most items have an 8% to 10% markup - Kirkland Signature brand has a 15% markup).

After accounting for expenses such as real estate costs and wages, Costco just about breaks even on those goods.

Sol Price, the company's founder, once said: "My 'secret' is so simple that I'm reluctant to speak openly about it for fear of appearing stupid. I sell things as cheaply as I can."

Eighty percent of the company's gross profit actually comes from the membership fees (between $55 to $110) from its 64 million members. That's nothing to sneeze at:

Costco's annual profit is roughly $1.5 billion. Nearly 90% of its customers renew their membership every year.

There's another benefit to requiring people to become members in order to shop: a customer who has to provide his details in the membership registration form is less likely to write bad checks or steal.

Costco suffers only one-tenth the level of those two types of losses as compared to the average supermarket.

I quit Costco when they spiked sales of a conservative book which title and author I forget at the moment. There have been other Lefty revelations over the years so I moved on.

quote:

Originally posted by bigdeal:
IS that reward generated on a Costco VISA card or on the account itself? I didn't opt to get a Costco VISA given I already have a rewards card I use that generates about the same benefits.

With the Costco VISA card you get 4% back on gas purchases, whether at Costco or anyplace else. 3% back on restaurants. 2% back on just about anything you buy at Costco except gas (4% on gas). 1% on just about anything else you buy with the card, anyplace you buy it. These cash back rewards come from Citi Bank (the issuer of Costco VISA), not from Costco.

quote:

Originally posted by bigdeal:

quote:

Originally posted by HRK:
Got our 2% executive membership reward for last year...

Can you explain what that is and how it works? I joined Costco within the past 6 months with an Executive Membership and am unfamiliar with that reference.

With an executive membership you get 2% rewards on everything and a check in the mail once a year from Costco after the membership fee is paid out of it- which you can take to the store and cash, use at the store etc.

If you have the Citibank Costco visa- you earn an additional 1% on all purchases, 2% on Costco purchases, 3% on restaurants and travel, and 4% on gas. You get a check once a year in your Costco Visa statement, but have to take it to Costco to cash or spend.

Some Costco stores sell diesel in addition to regular and premium.

I have a Motorhome that holds 180 gal. of diesel, well worth plotting out a Costco for diesel when traveling.

Just a tidbit of info in case anyone else is interested. This was my first year of renewal on my Costco Executive membership. I did get a check in the mail for ~$80. When I took it to Customer Service to renew membership, I told the Asst Manager I was just going to downgrade to the Premier membership and use the check on a future purchase. She offered to 'comp' me the remaining $30 so I could keep my Executive membership and keep earning 2% back on my purchases, which I took her up on. So the piece of info I wanted to pass along is you might be able to haggle a bit with them as they seem very motivated to keep as many people holding an Executive membership as possible.