Have you checked your Costco receipt lately? You might be in for a happy surprise. While grocery prices seem to be going up everywhere else, Costco is doing something almost unheard of these days – they’re actually cutting prices on many popular items. With inflation still making shopping painful for most of us, these price drops have shoppers doing double-takes at the register. Some members are even posting their receipts online, amazed that they’re paying less for their favorite products than they did last month.
What items are getting cheaper at Costco
If you’ve been shopping at Costco recently, you might have noticed that some of your go-to Kirkland products cost less than before. The biggest savings are on Kirkland Signature Macadamia Nuts, which dropped from $18.99 to $13.99 – that’s a $5 price cut! Chicken lovers will be happy to know that Kirkland Signature Fresh Boneless Skinless Chicken Tenderloins are 13% cheaper now. And if you’re a fan of Costco’s fresh baked goods, the two-pack of Kirkland Signature Baguettes has gone down from $5.99 to $4.99.
Other items with noticeable price drops include Kirkland Signature Standard Foil, which went from $31.99 to $29.99, and the popular 3-liter bottle of Kirkland Signature Spanish Olive Oil that’s now $34.99 instead of $38.99. Even Kirkland Signature Laundry Packs are cheaper, down from $19.99 to $18.99. Costco’s CFO says these are just a few examples, and shoppers should keep an eye out for more price cuts during their next Costco trip. The best part? The company isn’t skimping on quality – these are the same products you know and trust, just at better prices.
Why is Costco lowering prices now
You might be wondering why Costco is cutting prices when most stores are doing the opposite. It’s actually a smart business move. Costco has full control over their Kirkland brand products, which means they can find ways to make production cheaper and pass those savings to members. For example, they changed the packaging of their laundry packs, which reduced costs. And it’s working – after cutting the price of their chicken tenderloins by 13%, they saw a 21% jump in sales. When they sell more, they can negotiate better deals with suppliers.
Costco’s CFO, Gary Millerchip, has stated that the company wants to “be the first to lower prices” whenever they see opportunities. This comes right after they increased membership fees for the first time since 2017 – Gold Star memberships went up from $60 to $65, and Executive memberships from $120 to $130. The price drops are partly a way to show members they’re still getting great value despite the fee increase. It’s also helping them attract younger shoppers – almost half of their new members in 2024 were under 40 years old.
How to find the best deals at Costco
Want to make sure you’re getting all these price cuts? Start by checking out the price tags carefully. Regular Costco prices end in .99, but if you spot a price ending in .97, that’s usually a markdown set by the manager. And if you see an asterisk (*) in the top right corner of the price tag, it means that item probably won’t be restocked, so grab it while you can. Also, keep an eye out for “Markdown Mondays” – many Costco stores make their biggest price cuts on the fourth or last Monday of each month.
Another great money-saving tip is to watch prices after you buy something. Costco has a price adjustment policy that gives you money back if an item you bought drops in price within 30 days. So if you buy those macadamia nuts for $18.99 and a week later see they’re $13.99, you can get a $5 refund. For in-store purchases, just bring your receipt to the membership counter. For online orders, you can request a price adjustment through your Costco account. The refund goes back to your original payment method, so it’s like free money!
Pantry staples with the biggest price cuts
Some of the most exciting price drops at Costco are on everyday pantry items that most of us use regularly. The 3-liter bottle of Spanish Olive Oil is now $4 cheaper, which is a big deal if you cook a lot. Costco’s organic peanut butter has also seen a nice price drop, going from $11.49 to $9.99. And their chicken stock, which is perfect for soups and so many recipes, is now $8.99 instead of $9.99. Even their Kirkland Signature Sauvignon Blanc wine is cheaper, down to $6.99 from $7.49 – not a huge difference, but every dollar counts.
The price cuts aren’t limited to food items either. Household essentials like aluminum foil are $2 cheaper now, and laundry detergent packs cost $1 less than before. It might not seem like much, but these small savings add up, especially on products you buy over and over again. And the quality remains the same – Kirkland products are often made by the same manufacturers as name brands but cost much less. Many professional chefs even prefer Kirkland olive oil and other staples over more expensive brands, so you’re not sacrificing quality to save money.
How to get money back if you missed a price drop
Did you buy something at Costco just before the price went down? Don’t worry – you’re not out of luck. Costco’s 30-day price adjustment policy has you covered. As long as you purchased the item within the last 30 days, you can get the difference refunded. For in-store purchases, you need to go to the membership counter with your receipt. If you’ve lost your paper receipt, check the Costco app – your digital receipts should be there. For online purchases, you can submit a price adjustment request through your Costco account or contact customer service.
The refund process is usually quick and easy, but there are a few exceptions to be aware of. Costco doesn’t do price adjustments during major sales events like Black Friday. They also don’t price match with other retailers or even between their own warehouse and online prices. And certain items like gold and silver aren’t eligible for price adjustments. If for some reason Costco denies your price adjustment request, you can always return the item (Costco has a generous return policy) and then repurchase it at the lower price – though that’s more hassle than a simple adjustment.
Members react to the surprise price cuts
Costco shoppers are pretty happy about these unexpected savings. Many members have taken to social media to share their excitement about the price drops, especially since they came right after the membership fee increase. One shopper pointed out that the savings on just a few regularly purchased Kirkland items would more than make up for the $5 increase in the annual fee. And unlike most price increases that happen without much notice, these price drops came with an announcement from Costco, which has created a lot of goodwill among members.
Even when Costco finally raised membership fees for the first time since 2017, very few customers complained. As one Reddit user pointed out, the “price of membership increases has been lower than inflation.” And now with these price cuts on popular items, members are feeling even better about their Costco relationship. The timing couldn’t be better, as many households are still feeling the pinch of higher grocery prices elsewhere. Some members are even shifting more of their shopping to Costco to take advantage of these lower prices, especially on the Kirkland brand items that have seen the biggest drops.
More price drops coming soon
The good news is that Costco isn’t stopping with just these initial price cuts. Company executives have said that members should expect to see more price drops on additional products during their next Costco visits. They’ve been rolling out price reductions since the start of 2024, affecting various product categories including batteries, reading glasses, beverages, and frozen fruit. The company is actively working with vendors to keep prices down and find more opportunities to save members money.
If you want to stay up-to-date on price changes, there are a few simple tricks. Some members use the Costco Companion app to track prices and get notifications when items they buy regularly go on sale. You can also ask the membership counter staff about recent price drops – they’re usually happy to point out deals. Another tip is to check Costco’s monthly coupon book, which often highlights newly reduced prices along with limited-time special offers. With inflation still affecting most retailers, Costco’s commitment to lowering prices where possible is a refreshing change that’s making many members feel better about their shopping choices.
Why Costco can afford to lower prices
You might wonder how Costco can afford to drop prices when other stores are raising them. The secret is in their business model. Costco makes most of its profit from membership fees, not from marking up products. This means they can sell items at much smaller margins than typical grocery stores. Their membership revenue reached $1.512 billion recently, giving them plenty of financial cushion to keep prices low. And by controlling their own Kirkland brand, they can cut out middlemen and negotiate directly with manufacturers.
The company has also been smart about finding ways to reduce costs without sacrificing quality. For example, they might change packaging or buy in even larger quantities to get better deals from suppliers. When they lower prices, they often sell more units, which helps them negotiate even better deals for future orders. It’s a cycle that benefits both Costco and its members. The company is also seeing growth in their executive memberships, which increased by 9.7% year over year. These higher-tier members tend to spend more at Costco, which helps support the company’s ability to keep prices low across the board.
In a time when most stores are using inflation as an excuse to raise prices, Costco is showing that it’s possible to go in the opposite direction. Their price cuts on popular Kirkland items prove they’re committed to giving members real value. So next time you’re at Costco, take a closer look at those price tags – you might find some unexpected savings. And remember to check if anything you bought recently has dropped in price so you can get that money back!
