Retailer Costco has kept the price of its hot dog at $1.50 for more than three decades and will continue to do so for the foreseeable future. However, the company doesn’t share the same commitment when it comes to the cost of their annual membership fees.
Costco announced that it will raise annual membership fees for the first time since 2017. The price hike will come into effect on September 1st, and the Basic membership will go from $60 to $65 on an annual basis. The priciest membership, Executive Membership, will now cost $130 compared to its previous price of $120. According to Costco, the decision will affect around 52 million customers.
Costco usually increases its membership fees every five years or so. However, the retailer opted to postpone the latest hike, believing it wouldn’t be the right move as their customers are dealing with the effects of heating inflation.
Still, membership fees are an important source of income for Costco, as they help the company to keep their prices lower, and higher fees should bring a significant profit.
After the news about membership fee hikes was announced, Costco’s stock surged by more than 2%. The company’s shares were already having a great year, being 35.91% up year to date.