Costco higher membership fee goes into effect: Is it still worth it?

COSTCO. >> IT SHOWS THE REACH OF THE POPULAR WHOLESALER. >> OKAY. THIS MORNING WHAT'S GOING VIRAL IS COSTC OES DECISION TO RAISE ITS MEMBERSHIP FEE. WHAT'S BEHIND IT? IS IT WORTH IT? HERE TO ANSWER ALL OUR QUESTIONS IS CHRISTINE ROMANS. >> I ALWAYS SAY YOU GO THERE FOR TOILET PAPER AND COME BACK WITH A PONY AND COMPUTER. THEY WILL RAISE PRICES $5 TO $10. IT IS THE FIRST TIME THEY HAVE DONE IT IN SEVEN YEARS HERE. THE BUSINESS GOES UP TO $65. AND THE EXECUTIVE NOW GOES UP TO $130. REMEMBER, THAT EXECUTIVE ONE YOU GET 2% CASH BACK. SO IF YOU ARE LIKE ME AND YOU BUY A LOT OF STUFF THERE, YOU CAN PAY FOR THAT MEMBERSHIP FEE DEPENDING ON HOW MUCH YOU BUY THERE. IF YOU LOOK AT TRAVEL, IF YOU LOOK AT TIRES, GASSING SOME OF THESE DEEP DISCOUNTS FOR THINGS YOU CAN GET WITH A COSTCO MEMBERSHIP, THE $1.50 HOT DOG AND SODA, COME ON, I MEAN, THERE ARE REALLY BIG DISCOUNTS SERVICES HERE. THE TRAVEL SERVICES IN PARTICULAR, IT IS A REALLY EFFICIENT, EFFECTIVE WAY TO DO TRAVEL. AS I MENTIONED, THE 2% REWARDS ON COSTCO PURCHASES, IF YOU ARE A BIG PURCHASER, SOMETIMES THAT CAN HELP PAY FOR THAT MEMBER FEE. 52 MILLION PEOPLE WILL SEE THIS. IT IS NOT A FEW PEOPLE. 52 MILLION PEOPLE WILL SEE THIS. SO IT IS SOMETHING THAT A LOT OF PEOPLE WILL NOTICE. >> WITH THAT SAID, DO YOU THINK IT WILL AFFECT THE OVERALL MEMBERSHIP NUMBERS? >> I DON'T THINK SO. I THINK PEOPLE THAT ARE COSTCO FANS LIKE THAT FATHER AND SON ARE COSTCO FANS. SAM'S CLUB RAISED THEIR FEES AND DID NOT SEE A DECLINE IN MEMBERSHIP. >> THAT RAISES THE QUESTION, IF COSTCO GOES ONE WAY, DOES THAT GO TO EVERY OTHER RETAILER. >> YOU HAVE AMAZON PRIME IS $119 A YEAR. IT HAS SUBSCRIBE AND SAVE TRYING TO COMPETE THERE. WALMART HAS A WALMART PLUS MEMBERSHIP THAT'S $98. THEY HAVE SPECIAL HALF PRICE MEMBERSHIP FOR COLLEGE KIDS, WHICH IS PRETTY INTERESTING, SO LOOK AT THAT ONE. TARGET HAS ONE AT $99. A LOT OF DIFFERENT RETAILERS ARE LOOKING AT THE COSTCO MODEL AND SAYING MAYBE WE COULD GET BETTER DEALS, BUT IF YOU PAY A MEMBERSHIP FEE. I THINK THIS SUBSCRIPTION MODEL IS SOMETHING A LOT OF OTHER BIG BOX RETAILERS ARE DOING. >> THEY AREN'T RAISING THE PRICE ON THE HOT DOG, ARE THEY? >> NO. BUT THEY MIGHT CHECK YOUR CARD BEFORE YOU GO IN BECAUSE THEY'RE STARTING TO CRACK IN ON OTHER PEOPLE THAT ARE NOT MEMBERS COMING IN TO GET THE 99 CENT PIZZA AND OTHER FOOD. >> CHRISTINE, THANK YOU. >> YOU'RE

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