Last Updated on 01/11/2022 by てんしょく飯
30,000 yen in change for a 200 yen banana at Costco! One Costco member’s executive reward amount surprised the clerk.
Surprised by the amount of Costco’s Executive Rewards
Costco is a very popular warehouse club in Japan, where members can buy all kinds of products such as food, electronics and clothing at reasonable prices. In the U.S., regular members must pay an annual fee of $60 and executive members must pay an annual fee of $120. The executive membership, which costs almost twice as much as the regular membership, has a great rewards program that offers 2% back when you shop at Costco.
The annual limit is $1,000, and if you spend $250 per month, you will get $60 back, which is the difference in the annual fee. In fact, many people seem to be lining their pockets with this rewards program, and one Costco member revealed on reddit that he was given $288 in executive rewards.
The member chose to pay for the $1.79 banana with $288.05 in executive rewards and receive the difference, $286.26, in cash. So, for a banana costing about 200 yen, he would receive about 30,000 yen in change. The clerk seemed surprised to see the amount of money, as an executive reward of about 30,000 yen is quite good.
Incidentally, many people tend to buy too much when they go to Costco, and the high annual membership fee is one of the reasons why.
The high annual membership fee is one of the reasons. This leads us to go to the store even when we don’t need to, pick up things we don’t need, and spend money unnecessarily, explains Humphrey Young, a financial expert and TikToker. Young, a financial expert and TikToker, explains.
He also said that the products sold at Costco have a profit margin of only 10 to 15 percent, and membership fees account for about 90 percent of Costco’s profits.