13 Mind-Blowing Secrets Costco Employees Are Strictly Forbidden to Share with You
Did you know Costco has a secret life you’ve never seen before? This retail giant is a shoppers’ paradise, boasting over 130 million members globally and an annual revenue of $242.29 billion (Costco Annual Report 2023).
Costco employees have insider knowledge and operational secrets you’d never guess while pushing that oversized cart. Take a peek from secret pricing codes to members-only perks of what employees can’t (and won’t) tell you.
Pricing Codes Reveal the Best Deals
A sharp eye on the price tag can reveal more than just savings. If you see a price finishing at $0.97, you’ll know it is a member-exclusive store clearance. Prices ending at $0.99 are regular retail pricing.
Mark E., a former retail merchandising specialist, explains, “The pricing strategy is a subtle signal to help inventory teams reduce turnover while still prioritizing customer satisfaction.”
Not Every Item is a Bargain
Although we consider Costco the ultimate place to save money, only some products are a great deal. During clearance sales, certain seasonal items, like patio furniture and electronics, might be available; sometimes, they might be cheaper elsewhere.
Consumer Reports data shows that, in the long term, bulk meats and household essentials tend to outperform competitor pricing.
The “Death Star” Mark Denotes Discounts
Have you noticed a small asterisk (*) at the top right corner of price tags? This subtle mark, known among employees as the “Death Star,” signals that the product is being discontinued. This is your last chance to pick up the deal before the product is gone forever.
Luxury Producers Are Behind Kirkland Signature
If you think Kirkland is Costco’s private label, think again. Some of these Kirkland Signature products come from top-tier manufacturers.
For example, there is a rumor that Grey Goose vodka is the same source as Kirkland Signature vodka. Industry insiders repeatedly suggest this practice as the reason Costco can offer members phenomenal quality at a fraction of the price.
The $1.50 Hot Dog Combo Won’t Change
For $1.50, you’ve been able to get an iconic Costco hot dog and soda combo since 1985. Costco chooses not to pass added costs to customers; they choose to offset inflation in another way. For example, they make their hot dogs in-house to lower costs.
Employees Get Great Discounts (But Not How You Think)
You might imagine that Costco employees get stereotypical “industry discounts.” Instead, they get free executive membership, which equals 2% back on purchases, with the right to gift the extended perks to their family members.
Costco also forces its employees to become shoppers—it does this to ensure that its employees are loyal shoppers.
Samples are a Big Marketing Ploy
That free food sample isn’t a pittance; they’re trying to get people to buy it. Experts in consumer behavior say offering samples can boost product sales by as much as 30%.
Items Move Often to Keep You Shopping Longer
Have you ever wondered why your favorite oatmeal suddenly moved aisles? Costco intentionally shuffles stock to get you to walk to the other side.
According to the International Journal of Retail, customers who shop in disorganized stores can be persuaded to increase their purchases by 18%.
Employees Don’t Handle Free Samples
Costco contracts free sample management to external vendors to keep employees focused on their priorities, customer service, and operational excellence and avoid conflicts of interest.
Membership is Nearly All Profit
Have you ever wondered why Costco emphasizes memberships so much? Costco’s annual global profit is about 80 percent of membership fees, so those prices are unbeatable (from your $65 yearly fee).
Business Members can enjoy a Secret Shopping Hour
Do you have a business membership yet? Join the field to avoid crowds or shop in calmer areas of the store.
They Hate When You Ignore the Arrows
The directional arrows in parking lots and store aisles aren’t a recommendation—they’re how Costco keeps everyone moving. If you ignore them, employees will be frustrated, and operations can even slow.
You can Return Almost Anything
That is where Costco’s amazingly generous return policy comes in. Costco will take back almost anything, with no questions asked. While there are exceptions (like electronics and alcohol), employees are trained to follow a “customer is always right” mantra.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information.
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