Secret Price Codes Will Save You Money At Costco
Everyone Loves Costco
Everyone loves Costco and we all know they have terrific deals, great prices, quality merchandise, wonderful return policy and the best Hot Dogs with a soda for only $1.50.
Costco like many other stores, runs some of their merchandise at close-out prices. Unfortunately they don't make it easy for the shopper to know which items are marked down. Many of us have no idea which items are being sold at these lower prices. You can't tell by simply looking at the price sign on a product that it is a mark-down, special priced item, rebate item or discontinued item or which items will not be replenished when the current stock is sold.
In this article you will discover how find which items are at the lowest costs as well as other facts that I have learned over the many years as an expert Costco shopper.
eBay Power Seller
How I Started
I was an eBay Power Seller for many years and made extra money each year by buying close-outs and special items at Costco. I purchased their sale or close-outs and resold them at higher prices on eBay and did over $60,000 in gross sales in one year alone.
You don't have to buy to resell their goods, but you can save yourself thousands of dollars if you know their pricing codes. Read this article and follow my directions to save a bundle.
This article will illustrate how Costco prices these special sale items and how you can take advantage of the bargains once you understand their system.
Now some say that I shouldn't give up my professional secrets and like a magic trick, should never publish it and share it with the world. But I disagree and in these very difficult times, I think it is in everyone's best interest if we all share our tips and tricks on how to be a smarter shopper.
So if you like this article and find it helps you save money at Costco a recommendation, positive comment and your promise to pass the link to my article to every Costco member you know would be my payment in full.
This article has disclosed the concept of Secret Pricing policies at Costco as well as other stores. I decided to share these secrets with Hubpages readers years ago, and over the years my tips and secrets have appeared in the media, became the basis for many other "Secret Codes" articles and has spawned hundreds of new Frugal Living websites. Nice to be a pioneer.
Steps To Saving Money At Costco
When you visit your local Costco, pay special attention to the price tags for each item.
You will notice that most items end with a 99¢ ending. That’s the regularly priced merchandise. Other items may be priced or end with other numbers like .49¢ .79¢, .89¢ or 97¢. Now most of these are not significant, with one exception .97¢. Items ending with a .97¢ ending are items that have been marked-down. As you go through the store, look for the .97¢ endings, you will find quite a few throughout the store, even on food items.
Tips and Tricks For Better Shopping At Costco
Look For The Asterisk and the Date
1. You are going to look for items that now have a 97¢ ending. Regular priced items usually end with a 99¢ ending but not always. However, the ones with the 97¢ endings are those items that did not sell and must be cleared out. They are marked-down, but unlike all other retailers, Costco doesn't like you to know this, so the don't put the original prices with a slash and than the new price as many stores do. So to take advantage of these special deals, you have to know the code to know it is a close-out.
On a side note, just because it is a close-out or marked down, in some cases it might only be a very small mark down, so it is good to know what the original price was. You can ask their manager to tell you the original prices on these items if you copy and give them the item numbers before you make your purchase.
Remember, not all markdowns are deals. I have seen some items only marked down $1, at times when there is a large inventory. Don't rush to purchase if there is a large inventory of that item wait until the inventory and the price is lower.
2. Always look to see if there is an asterisk * on the upper right corner of the sign. If you see one, it means this item is not being restocked. What ever remaining stock you see is all that they have. This is a tip that it might be a marked down item, but not always. It does let you know that once these are gone there will be no more. I use this guide to determine if I should stock up on a discounted item, knowing that the store inventory is all there is.
3. Odd pricing like those that end in a 79¢, 49¢, 89¢ and others are usually regular priced merchandise. At times Costco also gets special deals from their vendors and will pass them on to their customers, however, those items with a .97¢ ending are your close-outs. Easy to remember when you are shopping at Costco.
Manager Specials: You may also see some odd and end merchandise on a flat truck or in an area of the store that has an 88¢ or .00 endings. These usually are Manager Markdowns taken at the store on returned but sellable merchandise (may have a damaged box of package).
They can be display goods or a few end of inventory items that they no longer want on the regular display. They will generally put these in a special area of the store so they don't take up valuable real estate. They will usually have the original price or close-out price printed sign and using a magic marker will cross out that price write in a new price that might say "Last One".
I don't pay much attention to these unless I can use the item for personal use. Some are floor samples and are not first quality merchandise anymore.
If you need it buy it if the deal is right, but remember, it really has to be at a great discount, you may be buying used or damaged merchandise....of course you can always return it too.
Other Ways To Save
Other Money Saving Tips
Now as you go through the store, you will begin to notice another special deal, the Instant Rebates on some items. Generally these will come from the manufacturers and Costco will give you the rebate on the items at the cash register. I like these a lot and you can watch for them at certain times of the year. I buy my Sonicare Toothbrush system and refills during these rebates, because I can save $20 or more on a $100 item. Same holds true for many other items, including food.
You will find a number of these in their monthly coupon books. No need to clip coupons anymore, the discount will be deducted from your order. Check your receipts to be sure it was.
Other instant rebates are also available, especially the ones that qualify for your States Energy Rebate program. Now that they have found the fluorescent bulbs contain Mercury and are actually harmful to the environment, you will see loads of the newer LED lights also available now with State funded Energy Instant Rebate Programs.
In New Jersey and other states you can get a substantial rebate at the cash register to entice you to switch over from your old energy consuming bulbs to these new high output bulbs no polluting varieties. They still offer rebates on the fluorescent bulbs, but I for one, have donated all that I had and converted every light in my home to the newer LED's. The time to stock up is when you see these state rebates. This happens usually once or twice a year.
Watch for Holiday or change of season close-outs...
As the Holiday Seasons, like Christmas, start to wind down, you need to get into the store and look for marked down items. Generally depending on when the inventory hit the store for that holiday is an indication of the first items to be marked down.
Quite often they will get seasonal merchandise or holiday goods in very early. I know by the amount of inventory they bring in and the type of merchandise if it will be a potential mark down. So I wait and watch the items I want to buy.
Certain items are always marked down. Wrapping paper, Christmas cards and other items are going to be marked down. Buy them and hold them for the next year. In the summer they always have lawn furniture, large flower pots, lawn chemicals and other items need to be sold at any price. Watch for the deal.
When the inventories start to get really low it is wise to scoop them up before they are gone. Dealers and others will clean them out fast if there is limited stock and resell them the following year as I might.
Tip: If you know certain items may be gone by the time you get back to the store to purchase them, buy them a few days before even if they are at full price. When they get marked down, go to the customer service area and get a refund on the difference. Costco has a 30 day price protection policy and will do this for you.
The only caveat on this move is you have to be pretty sure they have enough inventory and WILL BE MARKING THIS DOWN. in order to get a price adjustment. If they never marked it down, the only option you have is to return it with your receipt for a full refund.
For a more extensive look of Holiday deals, click the link below and see my article that will give you tips on saving even more on Holiday purchases.
Instant and Manufacturer Rebates
Even More Markdowns
Vendor Mark-Downs - Items that are not selling as well as they should are a prime target for a manufacturer mark-down. If it wasn't a direct import by Costco corporate (Kirkland Brand), Costco will go back to the vendor (manufacturer) and request an allowance from them to enable them to reduce the price of that merchandise. These will be the items to look for and will either have a Manufacturers Instant Rebate tag or a markdown price ending in .97¢.
I usually take note of an item that doesn't seem to be moving and wait patiently for the price reduction. If it is on the shelves for months and each time you visit you still see the same inventory there and it is not a staple item (food, etc.) you can be sure it will be reduced, so be patient if there is something you want to purchase, but think it is still a bit higher then you would like to pay. I have scored on tools and other items this way.
Yes you can also score big on some Food items too. Anything with an expiration date on it can and will be marked down as the date gets short. I have purchased many food items at 80% off the original price. As you know many of these will not spoil for years after the Best Used date on the package.
Note* Consumer Reports recently wrote that the expiration or Best Used Date has little to do with spoilage. Each manufacturer determines the dates that their products will taste the best, but does not mean they should not be consumed.
* Take A Camera, Smart Phone or iPad... Today I check prices on mark-downs immediately in the store. If you don't have that capability to do so, than by all means, record the prices on items so you can go home and check them on the internet to see just how good the deals really are.
* Resellers and Gift Givers...If you need them for gifts or for resale and they have that asterisk * on the upper right side, then buy what you need and don't wait if you see their inventory is low, they won't be getting any more.
* Coupon Specials...Take advantage of their coupon book specials and instant rebates as well. If you decide later you don't need them, or have a change of heart, just bring them back.
Remember to keep your receipt in case the prices have been reduced. Members receive a promotional booklet each month with loads of coupons and special offers stock up on some of the basic items like paper towels, toilet paper, they usually alternate every other month on these items. Costco does not accept manufacturer coupons.
Price Protection • Returns
* Price Protection Guarantee...If the prices do go lower on the close-outs, or items you purchased at full price, you can always bring the items back and repurchase them at the lower price. Remember, they do have a price adjustment policy on an item for 30 days too.
• Beyond The 30 Day Guarantee...If you see the item you bought at full price go on sale and it is beyond the 30 days the only other method it to purchase another one at the lower price. Than take your original receipt for the same item you purchased at the higher price and return the one you just bought at the sale price with that first receipt. I know Costco won't like me telling you this, but it is the only way I know to get around that 30 day price adjustment policy.
* Keep All Your Receipts...The single most important tip in this article is to hold onto every receipt from your Costco purchases. I keep mine in a little folder in date order. I also keep those for electronic items, larger purchases, etc. in a separate stack. Here is the reason. Costco has a satisfaction guarantee on all the products they sell. If for any reason you are not satisfied with the item in that time you can return it within 2 years, yup, 2 years.
Now If you kept your receipts, it makes this process easier and you will be credited for the original amount you paid. If not and they can't locate your purchase in their computer, if they can't find it , they may only offer you the lowest price the item sold for. As you already know it could be the marked-down price. So this is why keeping your receipts will be the one of the most important tips in this article.
* Return Policy...Costco has the best return policy of any retailer around. Try not to abuse it and try not to take unfair advantage of their liberal satisfaction guarantee. I have seen people bring back a bunch of dead cut flowers after they have had them in their homes for a week and get their money back. In this economy we don't want Costco to either go out of business or change their wonderful customer service policies.
Exceptions: On most items, but not all, you can return it if not satisfied up to two years in some cases. However on computers, certain electronic items and cameras the policy is now 90 Days, but to still keep their customers happy, they now have their own support system to help you resolve any issues with the products. Those items are clearly marked so you understand their policy on these special items.
Member Services and Perks
Member Services...Costco has formed relationships with many other companies to bring you even more services. Visit their website to see a full list of the many services to all members.
• Other Executive Member Perks... Executive Members also receive special pricing on goods and services too.
This includes additional savings or perks on these Costco Programs: Auto Purchase, Auto & Home Insurance, Mortgage & Refinancing, Boat and RV Loans, Gp Daddy websites and online solutions, Water Delivery Services, Identity Protection, Mexico Travel Auto Insurance, Online Investing with ING Direct, Personal or Business Checks (an additional 20% off member pricing), Business Phone Services, Merchant Credit Card Processing, and Costco Travel.
Now I will bet most of you never realized Costco has so many other programs set up to save you even more money. Check them out too.
• Risk Free 100% Membership Guarantee...If for any reason you are not happy with your membership, Costco will refund your full membership fee if you are ever dissatisfied.
As you go through the store, you may notice another deal: instant rebates. Generally these will come from the manufacturers and Costco will give you the rebate on the items at the cash register. I like these a lot and you can find them at certain times of the year. I buy my Sonicare Toothbrush system and refills during these rebates, because I can save $20 or more on a $100 item. Same holds true for many other items, including food.
You will also find a number of instant rebates in the monthly coupon books. No need to clip coupons anymore, the discount will be deducted from your order. Check your receipts to be sure it was.
Shopping Strategies: Vendor Markdowns
Poorly performing items are prime candidates for a manufacturer mark-down. Unless it’s Costco’s own Kirkland brand, the store will often go back to the vendor (manufacturer) and request a price reduction. These items will have either a Manufacturers Instant Rebate tag or a markdown price ending in .97¢.
I usually take note of an item that doesn't seem to be moving and will wait patiently for the price reduction. If it is on the shelves for months and each time you visit you still see the same inventory there, you can be fairly confident the item will be marked down. So, be patient if there’s something you want to purchase but can’t or don’t want to pay the full price.I’ve gotten great deals on tools and similar items this way.
Save Money via Member Services
Costco has formed relationships with many other companies to bring you even more services. Look at this list for some of the services offered to all members.
Executive membership perks. Executive members also receive special pricing on goods and services too. This includes additional savings or perks on these Costco programs:
- Auto Purchase
- Auto & Home Insurance
- Mortgages & Refinancing
- Boat and RV Loans
- Go Daddy Online Solutions
- Water Delivery Services
- Identity Protection
- Mexico Travel Auto Insurance,
- Online Investing with ING Direct
- Personal or Business Checks (an additional 20% off member pricing)
- Business Phone Services
- Merchant Credit Card Processing
- Costco Travel.
Get cash back. Executive Members receive a 2% Reward (up to $750 per year) on most Costco purchases, as well as additional benefits and bigger discounts on many of their services. If you do the math, you will be paying an additional $55 per year over the cost of their Business or Gold Star membership. So, if you spend an average of $245 per month, your reward will cover the additional cost to become an Executive Member. Who doesn't spend that much each month at Costco? Seems like a no-brainer!
Risk-free 100% membership guarantee. If for any reason you are not happy with your membership, Costco will refund your full membership fee.
Costco Co-Branded Credit Card
For the past 16 years Costco and American Express offered Costco members a co-branded card that was used as a membership card as well. It offered cash bonus rewards at the end of each year on all purchases Costco and others. Currently, customers can use any American Express card at checkout in addition to their MasterCard and Visa debit cards.
On April 1, 2015 that relationship will end and Costco who will now offer a co-branded Citi Visa card will become Costco's exclusive card. We still don't have information on the rewards if any on the new Visa card, but will report it when it is clear.
Food Court & Free Food Sampling
The Biggest Bargain At Costco. Some people like to hit the food court after they shop. For me, it is better to go to the food court before I hit the Racetrack. Many buy their 1/4 pound all beef hot dog and a soda with free refills for only $1.50.
Costco now produces their own Hot Dogs and has sold over 100 million...that is a lot of beef. Of course you can refill your free soda as many times as you like. Good idea to get your dog and soda before you shop and then use your soda refill to wash down all the tasty samples I’ll be enjoying as I move throughout the store.
Calorie Counters Look: Ask the counter person to pull out their calorie chart and see how many calories in each item. The Hot Dogs according to their calorie chart has 500 calories, a slice of plain pizza is 700, loaded is more.
So if you are watching your diet, you may want to try the lowest calorie item on their menu, the soft serve yogurt. Only 300 calories for a nice 15 ounce cup. I like their vanilla yogurt best, the chocolate tends to have a powdery taste. Add the strawberry topping and you are adding a lot more calories.
Costco offer more sampling of products then any other retailer I know. The reason is simple...not only do they generate business on products you might never purchase, but by offering you all these samples as you stroll through their stores, it encourages you to stay longer or even look forward to your visit.
Did You Like This Article?
I hope you have enjoyed reading this article on Costco. Please recommend the article to others. I very much appreciate all of your comments and encouragement and I will keep updating this article as I get new information. If you’ve made your own discoveries about how to save money at Costco, please share them in the comments below.
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