Costco has built a reputation as the place where bulk buying pays off, but a closer look at the warehouse giant's pricing reveals something shoppers should understand before they load up a cart.
The store doesn't run sales the way traditional grocers do.
Instead, it uses a coded system of price endings that signals whether an item is a genuine bargain, a limited markdown, or something you should probably skip.
The most talked-about signal is the price ending in .97.
When you see that, it usually means the item has been marked down from its regular price, often because it's a seasonal product, a discontinued item, or stock the store wants gone.
These can be real deals, but they aren't guaranteed to be the lowest price you'll ever see.
A .97 tag mostly tells you the item is on its way out.
A price tag with a star in the corner typically means the product won't be restocked once it sells out.
For shoppers who love a specific item, that's a heads-up to buy now or risk losing it.
For everyone else, it's a reminder that Costco's inventory is always shifting, and "limited time" is a marketing reality, not just a slogan.
The endings that matter most are .99 and round numbers.
A price ending in .99 is generally the regular, full-price tag.
If you see a clean number like $10.00 or $25.00, that often points to a manufacturer's special deal or a vendor-funded promotion, which can be a solid buy.
The catch is that these deals rotate constantly, so the same item might cost more or less on your next trip.
Costco's model depends on members feeling like insiders.
The treasure-hunt layout, the rotating inventory, and the coded tags all create a sense that you're getting an edge.
But the warehouse club also counts on you buying more than you planned.
A "deal" on a 40-pack of something you'll never finish isn't a deal at all.
Membership math deserves a hard look too.
Annual fees have crept up, and the pitch is that you'll earn it back through savings.
That's true for some households, especially large families or small businesses.
For a single person or a couple, the math can be tighter than the marketing suggests.
It's worth tracking your actual spending for a few months before assuming the membership pays for itself.
Costco's giant packages often look cheaper per item, but not always.
Compare the price per ounce, per pound, or per load against what you'd pay at a regular supermarket or a discount chain.
Sometimes the smaller package at a competitor is the better call, especially if you factor in spoilage and storage space.
There's also the return policy, which is generous but not unlimited.
Electronics, major appliances, and some other categories have shorter windows.
Knowing the rules before you buy keeps you from a frustrating trip to the returns desk.
For plenty of Americans, it's a genuinely useful way to cut grocery and household costs, especially as food prices have stayed stubbornly high.
But the smartest shoppers treat the codes as clues, not commands.
They check unit prices, watch for the asterisk, and ask whether a markdown is actually savings or just a nudge to spend more.
Our take: Costco rewards shoppers who pay attention and punishes those who don't.
The pricing codes are useful, but they're a tool, not a guarantee.
Final Thoughts
Bring a list, do the unit math, and let the tags inform you rather than tell you what to buy.