Today we’ll discuss whether Costco executive members should make sense. If you’re new, we’re all about maximizing the value of credit cards. Let’s get started on how you can get the most cash back and how you can travel for free.
One thing I want to do is to separate Costco membership from Costco executive membership, so we’re not talking about whether Costco membership is worth it, just because I think there’s more, I’m still doing some research, and there’s a lot to quantify whether it makes sense to have an executive member, although it’s easy to quantify most of it.
This is a balance of payments calculation. The main benefit of executive members is that you buy 2% in Costco. You can get up to $1,000 a year, with some exceptions, so let’s talk about those.
Another value of administrative membership is that you can get larger discounts on different Costco services, such as cheque printing, identity protection and free roadside assistance for vehicles. If you pass their car insurance plan, I don’t really get more than 2% extra value for my use cases.
I really don’t value any of this, but we’ll do another calculation. If you want to evaluate other services, you can find two percentage exceptions to your particular break-even. There’s a bunch of them, so I’m not going to read all of them. What really surprises me is the tobacco-related products, gasoline and Costco cash cards.
It really makes sense, because otherwise you could easily abuse costs, cash cards, and Amazon gave me, maybe some of the closest gift cards to cash. If you compare it with other gift cards, that’s at least there, because you can buy so many different things. If you can sell it at a 1% discount, you can arbitrage 2% and 1% of what you get technically and it will cost you, so just limit it to a 1% majority.
I don’t think it makes any sense. I think it’s a bad use of time, but I think that’s why they have a rule just to provide games.
To figure this out, the last thing we need is the cost difference, so if you pay 120 executives, and if you pay 60 people, then you can still add another person, so there’s no difference again. So, in most cases, we will rule this out for you personally, although you may still want to incorporate it into your break-even calculation, especially if you have someone who pays you half the benefits.
On the one hand, you subtract $60, on the other hand, you subtract $20 plus 0.02 X, 2% support overruns, and then add y, which is any other benefit. Promote what you accept, or you feel that you will gain from having an executor rather than a base executor. The first thing you need to do is define Y. Again, for me, Y equals zero, just because I don’t really bring you any other benefits.
Why am I equal to zero dollars or 100 dollars? Technically, if it equals $60 or even $60, it will be a break-even point. If it exceeds the default, even if you spend $0 at Costco, you should actually get Costco Executive 1, because you get more benefits. If Y equals zero, then it will be very simple, just because when you solve X for $3000, it means that if you spend $3000 in Costco, then if you get any card, it will be fair to spend less than that amount, and if it costs more, you should get basic membership.
So even if you spend $31,000, you should get an executive mathematically, just because we spent $31,000, it may not make sense to go online again just to get added value, just because of its materials.
One thing I mentioned is that it’s not meaningful to get basic members in the first year, and it’s always meaningful to get executive members, so the main reason is that you’re one. If you don’t get the positive expected value, Costco will actually refund the difference to you, which means that if your refund check is less than $60, they will lower your account and basically just refund your difference.
For example, if you spend $1500 in Costco, your refund check will be $30, so you just need to return the refund check to the front desk and tell them I don’t get the positive expected value, they’ll’Give you an extra difference, so technically, you can know your loss by choosing this option, and they just want to downgrade you.
It’s not something you have to feel sad about, because it’s what they preach, it’s something very important in the market, especially when I think about getting a card, it’s in my hands. It’s just my experience, at least that’s what they support, and they do well in your experience.
You should always get an executive, and the worst case scenario is who ends up wasting five to ten minutes on a downgrade card. I don’t think the people who work there think it’s too bad, but I think their hope is that you need to forget about the downgrade or feel it’s not worth the time, and then continue to pay for the administrative differences.