Why Ramit Sethi Says Costco Is “An Amazing Business”

A man pushes a shopping cart through the aisle of a warehouse store.

Image credit: Getty Images

Lots of people sure love it — including a personal finance guru.

key point

  • Costco is known for its commitment to affordable prices.
  • Joining Costco can be one of the smartest financial decisions you make this year because membership offers both value and exceptional customer service.

Costco is one of those stores where you really don’t know what you’re missing until you start shopping there. You can’t start shopping there until you start paying for your membership.

Costco’s basic membership is now $60. An upgraded executive membership will cost you double, but you’ll also get 2% cash back on all your Costco purchases, kind of like how you get 2% cash back on your credit card. So if you shop at Costco a lot, it might make sense to become an executive member.

Now, if you’re new to Costco, you might want to start with a basic membership and see how it goes. If you’ve been hesitant to join Costco, I definitely encourage you to become a member as soon as possible, especially if you have a Warehouse Club store near your home.

My family saves a lot of money by shopping at Costco regularly. But don’t just take my word for it. Financial guru Ramit Sethi is also a big fan of Costco.even won that far tweet about What an amazing business it is. Here’s why it’s true.

all for value

The reason so many people love Costco comes down to the savings and customer service the warehouse club giant is known for. Not only does Costco focus on offering competitive prices, but it goes out of its way to make sure customers are happy with what they buy. If not, Costco has a very generous refund policy.

Costco is so committed to great deals that if it can’t, it simply won’t put a particular item on its shelves. Sethi quoted Costco co-founder and former CEO Jim Sinegal in his tweet: “We have to be able to show savings on everything we sell. If we can’t show savings, we won’t carry it.”

This is a very solid way of providing value. Many retailers will not hesitate to stock up on overpriced merchandise and profit from it. But it’s clear that Costco doesn’t want to work that way.

In fact, if you’re an avid Costco shopper and have ever noticed that some of the products you used to buy there are no longer in stock, rising costs may be to blame. Costco may have pulled these items from their shelves to avoid a bang for your buck.

smart financial move

When I first joined Costco, I was skeptical about the savings involved. But now that I’ve been a member for over a decade, I can safely say that shopping at Costco helps me support my family and maintain my home for less.

If you’re on the fence about joining Costco, it might pay your membership fee in the spring, especially when food costs are soaring due to inflation. You may find that your membership is more than paying for yourself, and that shopping at Costco can help boost your income during these tough economic times.

Even if you’re not struggling financially, everyone loves saving money. Costco’s core business model is designed to help you do many of these things.

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