Costco just posted another strong quarter, and the warehouse giant is leaning harder than ever into member perks.
But the same shoppers who brag about their $1.50 hot dog are noticing something uncomfortable at checkout: the total keeps climbing even when the cart looks the same.
Grocery prices are still up roughly 20% from where they sat five years ago, according to federal inflation data, and warehouse clubs are not immune.
Costco's own earnings calls show it has passed along higher costs on everything from imported olive oil to beef, even as it uses cheap rotisserie chicken as a loyalty weapon.
What makes Costco tricky is the psychology.
The $65 membership fee already sunk into your brain makes every bulk purchase feel like a win.
A 40-pack of paper towels at a low per-roll price is still $30 leaving your account today, and that gap between unit price and cash out the door is where household budgets quietly bleed.
Many members put these bigger baskets on a rewards card to chase 2% back, but average credit card interest rates are hovering near record highs above 20%.
Carrying even a modest balance for two months wipes out a year of warehouse rewards.
The deal only pays if you clear the statement every month.
Rent and insurance are squeezing the same wallets from the other side.
With shelter costs still rising faster than overall inflation, families have less slack to absorb a $200 impulse run for snacks, patio furniture, and a surprise holiday decoration aisle.
Costco knows this, which is why it keeps rotating limited-time items that reward showing up often.
So how do you actually win at Costco right now?
Start with a list and a hard cap before you walk in, and treat the samples as a free lunch rather than a shopping prompt.
Compare unit prices against your regular grocery store on the ten items you buy most, because the club is not cheapest on everything.
Finally, check the price tag dates and asterisks: Costco marks down items it plans to discontinue, and those clearance tags are where the genuine deals hide.
Our take: the membership is still worth it for large families and bulk staples, but the era of walking out under $100 is largely over.
Shop the deals, skip the theater, and pay the card off in full.
Final Thoughts
That discipline is the only discount that compounds.