Walk into any Costco and you'll see the same scene: shoppers staring at price tags like they're decoding a secret message.
The warehouse club uses a quiet pricing code that tells you exactly when an item is about to get cheaper — and most members walk right past it.
Any price ending in .99 is the regular, full-price item.
But when you spot a price ending in .97, that's a manager's markdown — usually the first real discount on an item the store wants gone.
These are often the best finds in the building, and they rarely last more than a few days.
A price ending in .00 means a manager chose that price for a specific reason, often a clearance push.
Look for an asterisk in the upper-right corner of the tag, which means the item is discontinued and won't be restocked.
That asterisk paired with a .97 or .00 price is the sweet spot — a product on its way out at a real discount.
If you love it, buy two, because it may not come back.
Prices ending in .88 or .79 usually signal a return, a display model, or a one-off deal, so quality and condition can vary.
And a tag ending in .49 or .89 is often a manufacturer's special or a limited-time offer, not a clearance event.
Knowing the difference keeps you from mistaking a promo for a bargain.
Markdowns tend to surface when new inventory is arriving, often early in the week, and again when seasonal goods get cleared out.
Holiday items, patio furniture, and summer gear get slashed hard once the season turns.
Electronics and small appliances see price cuts when a newer model ships.
Watching those cycles beats chasing random deals.
Here's where the warehouse model actually works in your favor.
Costco caps most markups at around 14 to 15 percent, far below the typical grocery store.
That means the everyday price is already tight, and a .97 tag stacks a real discount on top.
The catch is bulk sizing — a great unit price still costs more at checkout, and it only saves money if your household will actually use it before it expires or gets tossed.
The membership math is worth a fresh look too.
A basic Gold Star membership runs $65 a year, and the Executive tier is $130 with 2 percent back on most purchases.
If you're spending enough to earn more than the $65 difference in rewards, Executive pays for itself.
If not, downgrading is simple and saves cash.
Costco also periodically runs membership promos with shop cards or freebies, so it pays to check before renewing.
A few practical moves for your next trip.
Bring the code chart in your head: .97 and .00 with an asterisk are your clearance signals.
Check the price per unit, not just the sticker, especially on paper goods and pantry staples.
Don't buy perishables in bulk unless you have a plan.
And remember that Costco's return policy is generous, which lowers the risk of trying a markdown you're unsure about.
The takeaway is simple: the deals aren't hidden, they're just written in a language most shoppers never learn.
Once you know what the cents mean, a routine warehouse run turns into a scavenger hunt with real savings.
None of this requires extreme couponing or a spreadsheet — just a glance at the last two digits before something lands in your cart.
Final Thoughts
In a year when every grocery dollar counts, that small habit is one of the easiest wins available.