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What does a price ending in 7 mean at Costco?

At Costco, there’s more to the pricing system than meets the eye. While the average shopper may not pay much attention to the digits after the decimal point, savvy Costco shoppers know that a price ending in 7 holds a special significance. In this blog post, we will explore what a price ending in 7 means at Costco, the benefits of these prices for consumers, the importance of pricing strategies in retail, and provide shopping tips to make the most of these cost-saving opportunities.

What does a price ending in 7 mean at Costco?

A price ending in 7 at Costco indicates a sale, but it is important to note that there are two types of sales represented by these numbers. Prices ending in .97 typically signify clearance sales, where items are marked down to make room for new inventory. On the other hand, prices ending in .07 indicate regular sales and promotions. Let’s take a closer look at each of these sales.

Prices ending in .97

When you spot a price that ends in .97 at Costco, you know you’ve stumbled upon a clearance item. Clearance sales are an opportunity for Costco to sell off remaining inventory and make space for new products. These items are often heavily discounted, making them attractive to bargain hunters. Whether it’s clothing, electronics, appliances, or household items, clearance sales offer exceptional savings.

For example, you might find a kitchen appliance that originally had a price of $99.99, marked down to $79.97. This significant discount allows you to save $20 off the original price. Just keep in mind that clearance items are usually limited in quantity and may sell out quickly, so it’s best to act fast to take advantage of these deals.

Prices ending in .07

Prices ending in .07 indicate regular sales and promotions at Costco. While not as heavily discounted as clearance items, these sales still offer savings compared to regular retail prices. Costco regularly offers discounts on various products, from groceries to electronics, during these sales events.

For instance, you might find a pack of cookies that originally costs $6.99 marked down to $5.07 during a regular sale. Though the discount may not be as substantial as clearance sales, it still allows you to save money on your purchases.

Perception of value

The use of prices ending in 7 at Costco creates a psychological impact on consumers. Research has shown that odd prices, such as those ending in 7, are perceived as being lower than even prices. This perception leads customers to feel like they are getting a better deal, even if the difference in price is minimal.

By strategically using prices ending in 7, Costco taps into this perception of value, making shoppers feel like they are saving more money compared to shopping at other retailers.

Benefits of prices ending in 7 at Costco

The pricing strategy of ending prices in 7 at Costco comes with several benefits for consumers and the retailer itself.

Savings for consumers

One of the primary benefits of prices ending in 7 at Costco is the opportunity for consumers to save money. Costco’s bulk-buying business model already offers lower prices compared to regular retail stores. When prices are further reduced through clearance sales or regular promotions, customers can enjoy even more significant savings on their purchases.

In addition, Costco occasionally offers additional discounts on items with prices ending in 7, further increasing the potential for savings. This allows shoppers to stretch their budgets and get more for their money.

Increased sales for Costco

The use of prices ending in 7 also benefits Costco by attracting price-sensitive customers. Bargain hunters are often drawn to these prices, knowing that they are more likely to find deals and discounts. As a result, Costco can attract a wider customer base and increase its overall sales.

Additionally, by offering clearance sales, Costco can clear out inventory that may not be selling as quickly. This allows them to make room for new products and maintain a fresh and attractive selection for shoppers.

Understanding the pricing strategies at Costco

The use of prices ending in 7 at Costco is not just a random occurrence. It is a part of a well-thought-out pricing strategy that combines pricing psychology and effective marketing tactics.

Pricing psychology

By using odd numbers for discount pricing, such as ending in 7, Costco creates a psychological impact on shoppers. These numbers are perceived as being lower than even prices, leading customers to believe they are getting a better deal. This perception motivates shoppers to make purchases and feel satisfied with their savings.

In addition, Costco often pairs these discounted prices with limited-time sales. This creates a sense of urgency for customers to make a purchase, as they know they are only getting these savings for a limited period. The combination of odd prices and limited-time sales creates a powerful incentive for shoppers to take advantage of these deals.

Marketing tactics

To draw attention to the sales and promotions, Costco utilizes various marketing tactics. They prominently feature sale items in their flyers and advertisements, ensuring that customers are aware of the cost-saving opportunities available. The use of eye-catching graphics and enticing descriptions further captures the attention of shoppers.

Within their warehouses, Costco also employs special signage and displays to highlight these discounted items. By creating dedicated sections and visually appealing displays, shoppers are naturally drawn to these products and encouraged to make a purchase.

Shopping tips for taking advantage of prices ending in 7 at Costco

To make the most of prices ending in 7 at Costco and maximize your savings, consider the following shopping tips:

Regularly checking for clearance items

Clearance items at Costco are often limited in quantity and sell out quickly. Make it a habit to check for these items regularly during your shopping trips. Some Costco locations may have designated clearance sections, while others may have clearance items scattered throughout the store. Keep an eye out for yellow tags indicating clearance prices.

Timing purchases to coincide with sales and promotions

Pay attention to Costco’s sales cycles and promotions. Certain items may go on sale during specific times of the year, such as seasonal items or electronics during Black Friday. Plan your purchases accordingly to take advantage of these sales and maximize your savings.

Comparing prices with other retailers

While Costco offers competitive prices, it’s always a good idea to compare prices with other retailers. Don’t assume that Costco always has the lowest price. Take advantage of price comparison websites or apps to ensure you are getting the best deal. Remember to consider factors such as quality, quantity, and convenience when comparing prices.

Taking advantage of Costco’s price matching policy

If you find a lower price on an identical item at another retailer, Costco offers a price matching policy. Simply bring in proof of the lower price, and Costco will match the price, allowing you to enjoy the savings without compromising on quality.


Next time you’re at Costco and come across a price ending in 7, you’ll know that you’ve stumbled upon a cost-saving opportunity. Whether it’s a .97 clearance price or a .07 regular sale, these digits hold special significance and offer a chance to stretch your dollar further. By understanding the pricing strategies at Costco and following some simple shopping tips, you can make the most of these deals and walk away with great savings. So keep an eye out for those 7s and enjoy the thrill of a big sale at Costco!


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