Common Mistakes Almost Everyone Makes When Shopping At Costco

In a converted airplane hangar in San Diego back in 1976, an American retail legend was born. Although not yet known as Costco, the Price Club venture that opened that year laid the foundation for the warehouse club industry; the first Costco warehouse opened in Seattle in 1983. While Price Club initially restricted its services to business members, it was when membership was opened up to non-businesses that the concept really took off.

By the time the two companies merged in 1993, the PriceCostco chain had 206 locations and annual sales of $16 billion. Now known simply as Costco, the company has 145 million members worldwide. A massive part of this phenomenal success is down to the company's focus on low prices. However, while it's tempting to grab the first Smart TV you see and assume you have a bargain, it's still possible to make mistakes when shopping at Costco. 

Although you can make mistakes when shopping at traditional outlets like Harbor Freight, Costco's subscription model and policies add another layer to this. So, before you rush out to buy the latest must-have gadget from Costco, here are five common mistakes nearly everyone makes when shopping at Costco.

Costco's reputation for value is undoubtedly well-earned, but that doesn't mean to say that everything you see on the shop floor is automatically the cheapest option available. This is especially true when you're shopping for higher-value items like smart TV's, laptops, gaming consoles, or even some of the more unexpected tech products you can buy at Costco. 

Although Costco's membership and buying/selling policies often allow the company to undersell competitors, this isn't always the case. It's easy to assume Costco has already optimized pricing, which could be a mistake. Competing retailers (both brick-and-mortar and online) may offer short-term promotions, flash sales, or bundle offers that undercut Costco's prices. 

Electronics comparisons can also be complicated by model-number variations. For instance, one thing to keep in mind before buying a TV at Costco is that there may be compromises. While not universal, some Costco models may differ from other retail versions. It's also worth noting that some of these are additional features exclusive to Costco. 

The point is that we live in the age of the smartphone, and checking competing retailers can be done in seconds. For a tin of beans or two, this isn't a reality, but for a $1,500 OLED TV, it's worth a quick check. It could save you a significant amount — or at least confirm that the price is genuinely competitive. 

Okay, let's say you followed our advice in the first step and found the same Samsung 55-inch TV at a lower price from another retailer. However, before you turn tail and head out of the store, it's worth pausing to consider whether another Costco benefit may sway you back to the checkout — the extended warranty.

If the savings you're making by switching aren't substantial, then the extended warranty that Costco offers is worth considering. This service is free with most large electronics, including major appliances, computers, and televisions (although smaller items like tablets aren't covered). The warranty covers the hardware for two years from the date of purchase, even if the manufacturer's warranty covers only one year.

Additionally, Costco also offers free technical support across most of its electronics range. Ultimately, even if you find a particular item cheaper elsewhere, it's a mistake to assume it's a better deal than Costco. If the savings are minimal, then the peace of mind of having technical support and an extra year's warranty could be a better option. 

Costco's subscription model requires a paid membership to shop, but not all members choose the right membership tier. Starting with non-members and assuming a membership is required, you'll need to at least add the cost of the standard Gold Star membership ($65) to the final total. This is fine if you intend to use it more than once, but it's certainly a consideration for one-off purchases. 

On the other hand, frequent shoppers may benefit from upgrading to an Executive Membership. This doubles the annual fee to $130 but offers 2% annual rewards on qualifying purchases, with rewards capped at $1,250 per year. Essentially, this means you'd need to spend roughly $3,250 annually on eligible purchases, or about $270 per month. 

While this might seem a lot, for gadget, tool, and tech lovers, it's easily achievable. And include some less important items, such as food and household essentials, and that upgrade could pay for itself. This isn't for everyone, but for serial shoppers who use Costco frequently, not paying the extra fee could be costing you.

You've just spent a whopping amount of hard-earned cash on the TV of your dreams, only to walk into the same store ten days later and find it on sale for $200 less. This frustrating scenario is one that many of us will be familiar with. While Costco doesn't price match competitors and it won't match warehouse prices to Costco.com purchases, it does offer a level of protection if the price drops after you buy. 

In many cases, members are eligible for a price adjustment if an item goes on sale within 30 days of purchase. That means if you buy a TV or laptop online and it's discounted shortly after, you may be able to recover the difference, provided you submit the request within the 30-day window. Additionally, for promotions tied to specific sale periods — such as holiday savings events — adjustment requests may need to be submitted while the promotion is still active. 

There are limits and exclusions. Quantity caps can apply, certain categories may be excluded, and adjustments are applied at Costco's discretion. On higher-priced items like tools, TVs, or laptops, an applied discount can make a meaningful price drop. Monitoring the prices of the items you bought could potentially put money back in your pocket. Not being aware of this policy is a common mistake among shoppers.

We admit that it's a stretch of the imagination to call replacing your tires a treat for your car. However, it's certainly one of life's necessary expenses, and ignoring Costco's tire services is a mistake that many shoppers make. 

For starters, Costco's tires are competitively priced, but there are also other perks to buying your tires from Costco to consider. From a sheer convenience viewpoint, you can book your car in at a time that suits you. This means you can head for the tools or electronics aisles and spend a pleasant hour or so planning your next purchase. At a push, you could even stray into the food section. 

Then there's what Costco typically bundles into tire purchases. Membership benefits of Costco tire purchases include free fitting and balancing, tire rotation, nitrogen inflation, flat repairs, and inflation checks. These are expenses that aren't always advertised by some retailers and appear as additional charges on the final invoice. 

Another noteworthy benefit is Costco's tire warranty. This extends beyond the manufacturer's warranty and includes a free five-year road hazard warranty. However, this isn't available for all tires and vehicles, so it's worth checking beforehand. 

Finally, Costco tire purchases qualify for the Annual Reward scheme, so executive members receive 2% as a reward (the $1,250 limit still applies); this rises to 4% if the tires are purchased with a Costco Anywhere Visa card.