Costco is a membership-only chain of stores that offer warehouse pricing on hundreds of products every day. As of the end of 2007, it was the 4th largest retailer in the US.

There are (essentially) two levels of membership in Costco.

A Gold Star membership allows the member to purchase items at Costco. It currently costs $50 per year.

A Business membership is similar to a Gold Star membership but allows the member to purchase items for resale. A business license or resale certificate is required to obtain a Business membership. It currently costs $50 per year.

An Executive membership entitles the member to a 2% rebate annually on all purchases at Costco. It currently costs $100 per year.

Here's a tip: If you spend as little as $2500 per year at Costco, the Executive membership is actually less expensive than the Gold Star membership.

There is also an Executive Business membership that has the same requirements as the standard Business membership but offers a 2% annual rebate. It also costs $100 per year.

Executive member rebate checks are typically issued in September, and must be redeemed at a local Costco store.

Here's a tip: Think membership isn't worth the price? Here's how we justified our first membership with Costco. We picked a single item that we consume every week then compared the price at Costco with the price (on sale!) at our local grocery store. The item we chose: orange juice. We drink a carton a week. At the time, on a per carton basis, a carton of orange juice was priced just about $1 less at Costco than at the grocery store. Membership then was $35 per year. With this one single item, our annual savings of $50 was greater than the cost of membership. The choice to join was an obvious one. And this was before the annual rebate programs Costco and American Express now offer!

Over the years, Costco has offered a number of different credit cards co-branded with American Express. In general, upon approval and with your Costco membership, the Costco American Express card typically offers a cash back reward and flexible payments with no annual fee. See the Costco website or visit your local Costco for more information about their current offering.

Rebate checks are included with the member's American Express February statement. The checks must be presented at Costco, but may be redeemed for cash.

Note that purchases on the Costco American Express cannot be used in conjunction with the Membership Rewards program that offers free travel and other benefits.

Every month, Costco publishes The Costco Connection, a magazine containing information about Costco's products and services as well as consumer columns from experts like David Horowitz (consumer connection) and Suze Orman (financial connection), and informed debates on current events. Each issue also typically includes articles on books, movies, gardening, cooking, travel, and more.

If you don't receive The Costco Connection in the mail, pick one up during your next visit to Costco. They are usually located just before you exit the store.

Here's a tip: You don't have to be a member to enjoy all the benefits of the Costco Connection magazine. There's an online version at CostcoConnection.com.

It's well documented that Costco sets the prices for most of its products at 14% above its costs. Most other retail establishments, even discount centers, mark up their products 50-100%. Of course the membership fees Costco charges are nearly pure profit. Still, on average, overall prices at Costco are going to be considerably less (even including the annual membership fee) than anywhere else.

Here's a tip: Items at Costco with prices that end in .97 are either discontinued or offered at a special discount to regular pricing. They generally represent a superior value. Watch out for them and take advantage when you can.

Several times a year, Costco sends members coupon books. (In the past, they have sometimes handed them out to members visiting the store.) There are two kinds of coupon books, though both offer exceptional savings on everyday products.

The first of these are passports, sometimes wallets, of coupons that must be used on specific weeks over the term specified (typically 2 months or so). The additional savings can be dramatic.

The second is a standard coupon book with most, if not all, coupons valid over a period that usually lasts at least 3 weeks.

Both kinds of coupons also include special deals available only online or discounts on a wide variety of services.

The additional savings on these items may more than pay for the annual fee. Check them out!

Here's a tip: It's always good practice to get to know the checkout staff at your local Costco. They often have extra coupons that they'll give you if you forget to bring in your own. Some store managers forbid the practice, but many do not. If the staff knows you as a regular customer, they'll always try to get you coupon savings.

Kirkland Signature is Costco's private label store brand. It is found on many products throughout the store, including dry goods, generic drugs, even wine and liquor. Prices of Kirkland Signature products are typically less than their brand name equivalents (which themselves are usually discounted significantly from retail).

Many consumer magazines rate Kirkland Signature products very highly, assigning a "best buy" notation to those that are especially cost-effective.

Costco has recently begun to co-brand the Kirkland Signature name with a brand name on some products. This co-branding offers the pricing of the Kirkland Signature line with the confidence of brand name recognition.

Costco strives to provide the best travel pricing for its members. In some instances, when contacting Costco for travel you'll speak to a Costco employee who is also a travel agent; in most cases, however, you'll speak with a travel professional who has contracted their services to Costco.

A recent issue of the Costco Travel Guide listed a section on cruises (Carnival, Windstar, Holland America, Royal Caribbean, Azamara, Celebrity, Disney, and many more), travel deals to Mexico, the Caribbean and Hawaii, Disney Vacations including Adventures by Disney, escorted tours to Australia, Europe, and much much more.

Here's a tip: Look for money saving coupons in issues of Costco Travel. In the Winter / Spring 2008 edition, coupons were available for free upgrades and discounts on the daily and weekly rates of rental cars.

Here's a tip: Some vacation packages offer special deals for Costco members, including Costco cash cards, upgrades, and special gifts. Executive members typically get even better deals but be advised, travel purchases are not included in the Executive Membership 2% Reward program.

For current information on the Costco travel program, visit their website.

The Costco Roadshows can be amazing! (Costco actually calls them Special Events.) A roadshow is essentially a collection of items that is not normally stocked at the local store. They're available at your store for a short period of time only, sometimes only a matter of days but usually a week or so, before moving on.

Most roadshows feature unique, one-of-a-kind items, like original artwork, hand-crafted ceramics, and jewelry. Some feature big-ticket items like pianos, billiard tables, or grandfather clocks. All have generally very high quality merchandise typically accompanied by relatively high prices (though still often less than comparably priced items elsewhere).

Here's a tip: Visit Costco's Special Events page to get a schedule for the roadshow in your area.

Costco is, by some accounts, the largest wine merchant in the US. And for good reason: a reasonably large selection of wines at very attractive prices.

Like most of their other products, wine is marked up only 14% in contrast to the 50% or higher markup at other retail centers. (Various state and local laws affect the end price to the buyer due to differing tax laws regarding the sale of alcohol. Also, some states prohibit Costco from selling wine.)

Here's a tip: In certain states, you do not have to be a member to purchase alcohol at Costco. Simply state at the door that you're purchasing alcohol. There is no additional non-member mark-up and your purchases will be limited to alcohol paid with cash or debit card. You may be required to get a "pass" at the member services desk. As of the end of 2007, states in which Costco is required to sell alcohol to anyone of legal minimum drinking age include Arizona, California, Connecticut, Delaware, Hawaii, Indiana, Massachusetts, Michigan, Minnesota, New York, Texas, and Vermont.

Costco even has its own Kirkland Signature brand of wines. These wines are available on a rotating basis, are of limited availability, and typically sell out very quickly. Visit the Costco Wine Connection website to find out what wines may be currently available and those expected soon.

In 2006, Wine Enthusiast Magazine joined with Costco to provide ratings and reviews for many of the wines sold in its stores.

Here's a tip: Visit our own "anything but chardonnay" wine ratings blog at ABC Wine Reviews for reviews on many white wines (excepting, of course, chardonnays) purchased at Costco.

Many Costco locations have pharmacies. In addition, Costco offers an online pharmacy at its website (though schedule II controlled drugs may not be ordered through the website).

Costco also provides pricing information for all its drugs on its website. Simply search by brand or generic name.

Here's a tip: You do not have to be a Costco member to purchase prescription drugs at the Costco pharmacy. Simply state at the door that you're visiting the Pharmacy. All purchases must be completed at the Pharmacy register.

For Costco members that do not have insurance coverage for their prescriptions, Costco offers a member prescription program that may provide additional savings over their regular prices. There is no additional charge to participate in this program. For more information visit the Costco Member Prescription Program web page.

Anyone driving by a Costco during business hours is likely to see a full parking lot. But there are times to shop that aren't quite as crowded as others.

If you shop during the week, try to do your shopping on Tuesdays or Wednesdays when the store opens. There may be a short line waiting to get it, but you'll likely have much of the store to yourself.

Here's a tip: Some stores have an "open when ready" policy that means the doors may open 10-15 minutes early. You might be able to take advantage of this extra time by arriving early. As an added bonus, you'll get a better parking space!

If you must shop on weekends, try to get to the store about two hours before it closes. Crowds thin out dramatically in the late afternoon.

The absolute worst time to shop at Costco: any time between 11 AM and 2 PM. There are a couple of reasons for this, including the fact that it is lunch time and many people are free during this time. And probably most notably the free samples of many products that are given out during this period. People congregate around the little kiosks making travel through the store difficult.

Corporate Headquarters:

Costco Wholesale Corporation
999 Lake Drive
Issaquah WA 98027
Main Phone: 1-425-313-8100
Main Fax: 1-424-313-8114
Website: http://www.costco.com/ (US)
Website: http://www.costco.ca/ (Canada)
Website: http://www.costco.co.uk/ (UK)

Costco trades on the NASDAQ under the symbol COST. It is a member of the S&P 500 and the NASDAQ 100.

Costco was founded in 1983. In 1993 Costco acquired Price Company, owner of the Price Club warehouse stores. Price Company, founded in 1976, is generally considered to be the originators of the modern warehouse shopping concept.

Of of September 2007, Costco operated 488 warehouses comprising 379 in the United States and 4 in Puerto Rico; 71 in Canada; 19 in the United Kingdom; 6 in Japan; 5 in Korea; and 4 in Taiwan.

Costco's primary competitors are Sam's Club, a unit of Wal-Mart, and BJ's Wholesale Club.

The following services, in addition to the standard products, are available at all Costco stores in the US:

Bakery, Produce (some with separate walk-in coolers for fruits/vegetables and dairy products), Fresh Meat, Service Deli, Food Court (or Hot Dog Cart), and Tire Service.

Costco and Sam's Club may be in the same category of membership-only warehouse shopping, but the two stores could not be more different.

There are quantitative and qualitative differences. The former can be backed up with facts. The latter is largely a matter of personal opinion.

Costco sells products far more efficiently than most other retail stores. On a sales per square foot basis, Costco sells about twice as much as Sam's Club. This efficiency gives it all sorts of advantages that benefit the consumer. The efficiencies fall immediately to the bottom line meaning greater savings for Costco customers. It also allows Costco to pay its employees, on average, far more than employees are paid at Sam's Club. The shopping experience at Costco is arguably much more pleasant because its employees are treated so well.

Here are some interesting comparisons between the two stores written by impartial organizations:

Consumer Reports (May 2007)
ABC 20/20 (August 2006)
USA Today (September 2004)
Business Week (April 2004)