As someone who’s not a Costco member, I wondered how current members would feel about this new step.
I thought back to what happened when Netflix cracked down on sharing accounts. People, especially those using others’ logins, reacted with outrage and funny memes.
But eventually, many got their own subscriptions.
Now, it’s Costco’s turn. I’ve talked with friends who are members and checked social media and the Costco subreddit. Most people seem okay with the extra scanning and verifying.
Here are a few examples:
“I did it last week, and it was totally fine. I welcome our new card-scanning overlords.”
“This rollout will help solve many issues Costco faces. Much needed.”
“My husband’s only gripe is that it brings up your picture when you scan, and everyone around can see it. Not a big deal, just doesn’t like his picture.”
“I had zero issues, except an old lady in front of me didn’t know what to do.”
“If I don’t have a card, I’ll just go in through the exit doors and then into the store through the checkout lanes.”
O.K., that last one’s a bit less enthusiastic, but overall, reactions are about 90 percent in favor.
The difference between Netflix and Costco doing the same thing? It’s their business models.
Netflix is digital, so an extra non-paying user doesn’t add much cost. It doesn’t affect paying members much, except they don’t like paying for something others get free. Costco is mostly brick-and-mortar with physical products. Paid memberships allow lower prices for everyone. Nonmember shopping can affect the company’s bottom line, and crowding the store can reduce the value for paying members.
This crackdown comes as Costco raises membership prices for the first time since 2017, from $60 to $65 for regular memberships and from $120 to $130 for executive memberships.
The timing works in Costco’s favor, as it gets stricter on its members-only rule. No one wants to pay extra while others sneak in for free.
The lesson here? Align incentives so if you do well, your customers do better.
They might just become more supportive. Maybe they’ll even spread the word about you.