Decoding Costco prices for bigger and better savings

Love a bargain? Love knowing how to get an even better bargain? Well, this Costco guide will help you to save even more on your next shopping trip…

Costco is the amazingly cost-effective warehouse store that allows people all over the world to buy their groceries, clothes and household items at whole-sale prices. Australia is now home to Costco warehouses in Melbourne, Sydney, Canberra and now North Lakes just north of Brisbane.

The savings are obvious… You step foot in the store and immediately savings jump out at you. But, an American man took it upon himself to further decode the Costco pricing system, so you know when you are getting the most bang for your buck.

So, here are the tips that US retail blogger, Len Rapoport is sharing with the world via his blog.

If the price ends with .99 the item is being sold at the wholesale price which usually includes a mark up capped at 14% of the cost price.

If the price ends with .97 the item is classified as a ‘store manager special’ and Rapoport attributes this to excess stock needing to be cleared out or a new product line replacing the existing one calling for a quick sale.

If the price ends with; .49, .59, .69, .79 or .89 this is a manufacturers special and is often used for trial products, however Rapoport suggests that this is often the same value as the store manager specials.

If the price ends with .00 or .88 this is a clearance item and the store wants to get rid of it ASAP… Really as soon as possible! Approach these items with caution as they may be display products or it could just be a bad seller.

If the price tag has an asterisks on it, the item is discontinued so don’t count on it being there the next time you are shopping!

BMag, reported that the Executive Vice President and CFO of Costco, Richard Galanti confirmed these codes but told Reuters, “It’s more for efficiency, for the employees,”  Galanti also said. “It’s not any sort of secret agent stuff. But you see it on a blog and people think it’s a secret. It’s just a way of moving some merchandise, to help the fork lift operators and the stocking clerks.”

So next time you are shopping at Costo, crack the code and you’ll save more money on your purchases!

Have you shopped at Costco? How do you find the prices and value? Share your thoughts in the comments below…