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Costco Wholesale’s specials on hot dogs, gasoline, and thousands of bulk items may seem like the chain’s best offering, but according to its CEO, one item on sale beats everything else in the big-box stores in terms of value.
“The most important product we sell is our membership cards,” Costco’s CEO said. Ron Vakris told Fortune. “Everything we do is in support of that deal,” he said in an interview last month.
Costco offers two types of membership: Executive and Gold Star.
Gold Star membership costs $60 per year, allows members to shop online and at the warehouse, includes two membership cards, and comes with a guarantee that you can cancel your membership at any time and get a refund if you’re not satisfied.
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A shopper shows his Costco Wholesale membership card as he enters a Costco Wholesale store in Niles, Illinois, on March 8, 2002. (Tim Boyle/Getty Images/Getty Images)
But the real savings come with the Executive Membership, which costs $120 per year.
With Executive Membership, you get all the benefits of Gold Membership plus additional perks and discounts on Costco services.
Additionally, members earn 2% annual rewards (up to $1,000) to use on eligible Costco and Costco trip purchases.
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Costco CEO Ron Bakris said the real “money” is in memberships. (Eric Thayer/Getty Images/Getty Images)
For example, if a member spends $300 a month on essentials like groceries, clothing and paper products, $1,000 a year on appliances and electronics, $300 on furniture and bedding, and $600 a year on auto, travel and lifestyle items, they could get about $110 back, according to a calculator on Costco’s website.
All members also receive daily specials, including the wholesale club’s popular $1.50 hot dog and drink combo.
With a huge number of products in stock, picking the most valuable items may seem difficult, but Vakris’ experience with the company makes him one of the best people to carry out the task.
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Prepared meals are sold at a Costco store in Teterboro, New Jersey, on Wednesday, Feb. 28, 2024. Costco Wholesale Corp. is scheduled to report earnings on March 7. (Stephanie Keith/Bloomberg via Getty Images/Getty Images)
Vakris, only the third CEO to hold the CEO title in Costco’s 41-year run, reportedly began his career as a forklift driver at age 17 for Price Club (which eventually merged with Costco).
According to the company’s website, Vakris is a Costco veteran who has been with the company for more than 40 years and has held every key position related to Costco’s business operations and merchandising activities. Prior to being appointed CEO, he served as Costco’s president and chief operating officer, a position he had held since February 2022.
He will take over as CEO on January 1, 2024, succeeding Craig Jelinek.
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Costco did not immediately respond to a request for comment from Fox News Digital.
Costco’s membership grew to about 128 million last year, with a 90% renewal rate, according to its most recent annual report. Membership revenue grew 8% last year, totaling $4.6 billion.
