From gasoline to scorching canines to gold bars, there is not any scarcity of issues you should purchase at Costco.However the wholesale chain’s CEO says the gadgets you pull off the warehouse’s extra-large cabinets are of secondary significance to what you carry in your pockets.”Crucial merchandise we promote is the membership card,” Ron Vachris advised Fortune in an interview final month.Costco’s has a 130 million-strong membership base, every of whom pays between $60 and $120 per yr for entry to the chain’s shops.The promise of two% money again with Costco’s Government membership will be tempting, but it surely may not be well worth the upcharge.Joe Raedle | Getty Photographs Information | Getty ImagesThe cheaper Gold Star membership grants members entry to all of the chain’s warehouses and offers, whereas the pricier government membership has the added bonus of two% money again on every buy.Costco has seen its member base swell 50% since 2016, with membership charges producing $4.6 billion in income final yr. On high of that, its members are loyal, with 90% of cardholders opting to resume their memberships in accordance with Costco’s most up-to-date annual report.As a result of solely members can store in a Costco warehouse, the shop is designed to maintain them coming again. From affordably-priced gasoline stations that lure prospects in, to the chain’s well-known rotisserie rooster being positioned within the very again of the warehouse, Costco needs you to really feel like your membership payment is worth it.”Every thing we do helps that transaction,” Vachris stated.In case you’re serious about signing up for a Costco membership, however do not know when you ought to go for the $60 or $120 tier, some basic math could make the selection simple for you.Since you get 2% money again with the costlier Government Membership, you will have to spend $3,000 to obtain $60 in money again. At that time, your efficient annual membership charge is again all the way down to $60. In case you suppose your annual spend will likely be below $3,000, follow the cheaper tier.Wish to be a profitable, assured communicator? Take CNBC’s new on-line course Change into an Efficient Communicator: Grasp Public Talking. We’ll educate you converse clearly and confidently, calm your nerves, what to say and never say, and physique language methods to make an ideal first impression. Join right this moment and use code EARLYBIRD for an introductory low cost of 30% off via July 10, 2024.Plus, join CNBC Make It is e-newsletter to get ideas and methods for fulfillment at work, with cash and in life.