Wages have increased at Costco this year. OK, What about prices?

I am an unapologetic Costco shopper. Typically, I will make a Costco trip first thing in the morning on Sunday when they open. It's easy to find a parking place, I get in and out, It's lovely. But I did notice when my membership costs went up last year. 

According to msn.com,
‘While rival Sam's Club charges $50 a year for its standard membership and $110 a year for its Plus membership, Costco’s fees are higher.
Following a fee hike in September 2024, a basic Gold membership at Costco costs $65 a year, while an Executive membership costs $130. Costco's September increase marked the first fee hike in more than seven years.’ 

Now, the good news on that front is at least a little portion of that money is going into the pockets of the folks who work at Costco. Earlier this year Costco employees received a minor wage increase. The top wages for US employees will increase by approximately a dollar. 

Employees at Costco work hard, so the company wants to make sure that they're rewarded. Costco also likes to promote from within and invest in employee development programs. 

As good as it is to hear that Costco is taking care of their employees you have to keep in mind where do these perks and wages come from? Well, they come from the profits of the products they sell to you and me, and right now those profits are being undercut a little bit by inflation. 

Keep an eye out because some of your favorite products are probably going to start increasing in price. (Not a lot, just a little bit.) What higher wages are going to cut into is the company's speed of expansion.  

According to msn.com,
‘Costco also invests strongly in its employees, and it recently made a big change to that effect. But that change could stall the warehouse club giant’s growth at a time when its costs are up broadly.'

Even if prices go up a little bit, I will still be shopping at Costco.  

I'll see you there Sunday morning.
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