Costco is one of the first places we look for prices to drop if we hear certain products are going to get cheaper. Why? Because they have such a low markup on products to begin with.
If you’ve studied our Costco price hacks, you already know that Costco has one of the lowest markups in the industry. Costco's average markup is around 14% to 15%, while competitor stores often inflate their prices by anywhere from 25% to 100%.
When I listened in on the recent Costco earnings call on March 7, 2024, their outgoing CFO Richard Galanti mentioned that a handful of items have already seen price drops, like Kirkland batteries and frozen berries.
"We're taking price reductions where we can," Galanti said. "We always want to be the first out there trying to lower prices."
So there's good news for 2024. According to a CNBC report, certain grocery items are forecasted to drop in price this year, too. Which means Costco price drops should be coming our way!
In addition to the shopping the best deals at Costco this month and claiming savings in the Costco Coupon Book, watch for price drops on these five grocery items in 2024. We've also confirmed that four items have already seen price drops — like Kirkland batteries and reading glasses.
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The following prices may vary.
1. Eggs
Remember the egg crisis of 2023, when the cost of a dozen eggs hit an all-time average high of $4.82? Thank goodness we're past that. According to a CNBC analysis published in February, egg prices have already fallen by 28.6% since last year.
And they predict egg prices could drop another 23.8% this year, which means we may see a dozen eggs priced under $2 again. Fingers crossed!
The good news: When I checked in February, Costco’s price for two-dozen eggs was just $4.99, which means the price of a dozen regular eggs is around $2.49. (That's a whole $2.33 cheaper than their per-dozen cost from last year.)
And the five-dozen package of Kirkland Signature cage-free eggs is an even better deal. You'll pay $11.79 for five dozen eggs, which comes out to $2.36 per dozen of cage-free eggs.
2. Chicken
Back in March 2020, this 6.5-pound bag of frozen Kirkland Signature chicken sold for $16.89 at Costco. But by March 2023, Costco’s price had jumped to $20.99 (a 24% increase).
The good news: As of February 2024, the 6.5-pound bag of Kirkland frozen chicken is down to $18.49, or $2.84 per pound. This means Costco has already dropped the price of chicken by 12% since last year.
And according to Fortune.com, the price of chicken is expected to fall in the coming months (and years) due to a decrease in the cost of chicken feed.
3. Breakfast Sausage
Sliced bacon had its price drop moment at the beginning of 2023, with average U.S. prices falling about 6% from January 2022 to March 2023. But what have the breakfast sausage prices looked like at Costco?
Right now, a 3-pound package of Jimmy Dean Premium Pork Sausage costs $10.59, which comes out to $3.53 per pound. And a 2.5-pound package of Goolsby's Country Sausage is $9.49 at my Costco, or $3.80 per pound.
The good news: If breakfast sausage prices continue falling by 3.4% (as reported by CNBC in February 2024), expect to see the price per pound hit about $3.40 - $3.66 by this time next year.
4. Butter
Back in August 2020, we found a four-pack of Kirkland salted butter for $6.99 at Costco. By March 2023, it was up to $14.29 — a 104% jump. Prices fell a little bit last summer, to $10.99 for the same pack, but now the Kirkland butter is back up to $12.99 for a four-pack.
The good news: According to CNBC’s February data, butter has already dropped in price by 1.6% since January of last year. If that trend continues, we'll hopefully see the Costco price fall by at least $0.20 this year.
5. Pure Vanilla Extract
Costco’s always-amazing price on pure vanilla extract got a little less amazing in 2023 when the price jumped to $16.99 for a 16-ounce bottle (that's $1.06 per ounce).
But we’ve already seen Costco’s price on pure vanilla extract decrease significantly.
The good news: In February 2024, Costco’s 16-oz bottle of Pure Vanilla Extract costs $11.99 ($0.75 per ounce) — a $5 price drop on the whole bottle since last year, and a $0.31 price drop per ounce.
Related: Besides the grocery deals, you can also find savings through Costco Next, an online shopping site that's open to all Costco members.
Costco Prices That Have Already Dropped
Frozen Three-Berry Blend: 27% cheaper
Due to "new crop pricing," Costco was able to drop the price on their 4-pound bag of frozen Kirkland Signature Three Berry Blend by $4, according to details shared by CFO Richard Galanti during the March earnings call. That's a whopping 27% price drop!
Current price: $10.99 in-store
Previous price: $14.99
San Pellegrino 24-Packs: 12% cheaper
Costco also dropped the price on their 24-packs of San Pellegrino mineral water by 12% in recent months, which means you're paying about $0.08 less per can ($2 less per pack).
Current price: $14.99 in-store
Previous price: $16.99
KCL TIP: Remember that Costco's online prices are typically higher than in-store prices, since shipping and handling is factored into the online price. For example, the 24-pack of San Pellegrino water is $19.99 on Costco.com — that's 33% higher than in store.
Reading Glasses: 11% cheaper
Not the sexiest item, I know, but hey — a price drop is a price drop. Costco's leadership bragged that the price of their reading glasses is down by 11%, saving you $2 per pair.
Current price: $16.99 in-store
Previous price: $18.99
Kirkland Signature Batteries: 11% cheaper
All of the 48-packs of Kirkland Signature batteries, including AA and AAA sizes, have dropped in price by $2 per pack. You're saving 11% on the same product, and paying about $0.04 less per battery.
Current price: $16.99 in-store
Previous price: $18.99
Costco Prices Here to Stay
Rotisserie Chicken
Costco executives have called their $4.99 rotisserie chicken a “wow” item. The shockingly low price of Costco’s 3-pound chicken is a great example of a loss leader, a tactic stores use to get shoppers in the door.
So don’t worry about the price for this fan-favorite going up anytime soon. Their leadership team has confirmed that the rotisserie chicken is “an investment in low prices to drive membership” (and sales) in a big way.
Hot Dog Combo
Another one of the most beloved Costco deals is here to stay: the $1.50 Hot Dog Combo at Costco’s food court. Costco has kept this hot dog combo at $1.50 for over 30 years, and we can’t imagine them changing it anytime soon!
Sources:
CNBC: "Deflation: Here's Where Prices Fell in December 2023, In One Chart"
CNBC: "Deflation: Here's Where Prices Fell in January 2024, In One Chart"
Costco: Costco Wholesale Corporation Fiscal Q2 2024 Earnings Call
Fortune.com: "Chicken Prices to Finally Fall Thanks to Boom in Renewable Fuel: ‘A Tailwind for the Protein Industry’
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