Costco's monthly coupon book gets all the attention, but the real savings are hiding in plain sight.
The warehouse giant quietly slashes prices on items that never make the flyer, and shoppers who know where to look are walking out with deals that beat even the marked-down tags.
The first place to check is the price tag itself.
Costco uses a secret code system, and it's not marketing fluff.
Any price ending in .97 means the item is on clearance at that specific warehouse — often 20% to 50% off — and it won't be restocked.
Prices ending in .00 or .88 signal a manager's markdown, usually the final cut before an item disappears.
If you see an asterisk in the upper-right corner, that's your cue the product is discontinued.
Combine an asterisk with a .97 and you're looking at the deepest discount in the building.
Costco marks down seasonal merchandise on a predictable cycle — patio furniture in July, holiday decor in early January, summer apparel in August.
The last two weeks of a season are when .97 tags multiply, because managers need the floor space.
Walk the center aisles and the seasonal section first, not the grocery aisles where prices are stable.
The food court and rotisserie chicken remain the loss leaders that get people in the door, but the underrated move is the clearance endcap near the pharmacy and the back wall by the meat department.
That's where returned electronics, open-box small appliances, and overstocked pantry items land.
A returned air fryer marked down 40% still carries the full manufacturer warranty.
Don't sleep on the Kirkland Signature house brand, either.
It's produced by many of the same manufacturers behind name brands, and Costco's pricing on it rarely moves.
When a name-brand equivalent goes on .97 clearance, the Kirkland version is often still the better per-unit value — so compare the unit price on the shelf label, not the sticker.
One more angle: the Costco app and website show warehouse-specific inventory if you set your local store.
Items that are low-stock online often get pulled from the sales floor and dumped into the clearance bin.
Checking the app before a trip can tell you whether that .97 item is worth the drive.
A word of caution on the famous "death star" — the asterisk tag doesn't mean the price will drop further.
Waiting for a deeper cut usually means missing it entirely.
If you need it and the price is right, buy it that trip.
The savings add up fastest for members who treat Costco like a treasure hunt rather than a grocery run.
The coupon book is fine, but the real money is in the tags nobody advertises.
Our take: Costco's clearance system rewards shoppers who learn its language, and that knowledge costs nothing.
The catch is discipline — a .97 tag on something you didn't need isn't a deal, it's a trap.
Final Thoughts
Go in with a list, check the codes, and let the markdowns come to you.