Costco is a retail giant known for its bulk pricing and treasure-hunt shopping experience, but its sales events—both in-warehouse and online—offer a unique layer of complexity for deal hunters. Unlike standard clearance sales at other retailers, Costco’s markdowns follow a distinct rhythm, often tied to inventory rotation, seasonal shifts, and the store’s famous return policy. This guide breaks down the specific strategies you need to navigate Costco sales effectively, from understanding the price tag code to timing your purchases for maximum savings.

Decoding the Costco Price Tag: The Secret Language of Markdowns

The foundation of any successful Costco deal strategy starts with reading the price tag correctly. Costco uses a standardized system on its shelf labels that signals the status of an item. Ignoring this system is the most common mistake new shoppers make.

The Asterisk (*) Indicator

The single most important symbol on a Costco price tag is the asterisk in the upper right corner. When you see an asterisk next to the price, it means that item is not being reordered. Once the current stock is gone, that product will not return to that warehouse. This is your signal to act quickly if you want the item, but it does not necessarily mean the price is at its lowest point yet.

The .97 Cents Ending

Prices ending in .97 are not standard markdowns. These are manager-initiated clearance prices, often applied to overstock, discontinued items, or seasonal goods that need to move fast. A .97 price is typically a better deal than a standard sale price, but it is not the absolute floor. These items are often found on pallets in the center aisles or at the end of a row, not in their regular home location.

The .00 Cents Ending

A price ending in .00 is the rarest and deepest discount you will find. This usually indicates a final clearance price, often applied to items that have been sitting at a .97 price for a while. When you see a .00 price, the item is likely being sold at or below Costco’s cost. This is the point where you should buy without hesitation if you have a need for the product.

The .88 or .49 Cents Endings

These endings are less common but still significant. A .88 ending typically indicates a store-level markdown on a display model or a damaged box. A .49 ending is often a manufacturer’s temporary price reduction, not a store clearance. While still a good deal, it is not as aggressive as a .97 or .00 price.

Timing Your Visit: When to Find the Best Sales

Costco does not follow a uniform national sale calendar for every item. Instead, sales are driven by a combination of manufacturer promotions, seasonal cycles, and local inventory management. Knowing the general timing patterns will help you plan your trips.

Seasonal Clearance Windows

The most predictable sales occur at the end of each major season. For example, patio furniture and grills hit clearance in late August through September. Holiday decorations and wrapping paper are deeply discounted starting the week after Christmas. Winter clothing and snow gear go on sale in February. These windows are short—often just two to four weeks—so you need to be ready to buy when the price drops to .97 or .00.

Mid-Week vs. Weekend Shopping

While Costco is busiest on weekends, the best deals on fresh markdowns often appear mid-week. Many warehouses receive new clearance items on Tuesday or Wednesday mornings. Shopping on a Wednesday morning gives you first access to newly marked-down items before the weekend crowds pick through them. Avoid shopping on Monday mornings, as clearance racks are often picked over from the weekend.

The “End of Month” Effect

Costco managers have discretion to mark down items to meet monthly sales targets or clear out inventory for new shipments. The last week of the month is a prime time to find .97 and .00 prices, especially on large items like electronics, furniture, and appliances. If you are hunting for a specific big-ticket item, wait until the final week of the month to check for a price drop.

Online vs. In-Warehouse: Two Different Deal Ecosystems

Costco’s online store (Costco.com) and its physical warehouses operate with separate inventory and pricing strategies. A deal available online is not necessarily available in-store, and vice versa. You need to treat them as two distinct shopping channels.

Online-Exclusive Sales and Shipping Costs

Costco.com frequently runs online-only promotions, especially on electronics, home goods, and specialty items. However, many online items include shipping costs in the listed price, even if the item shows “free shipping.” Compare the online price to the in-warehouse price, factoring in any shipping fees. For heavy or bulky items, the warehouse price is almost always lower because you are not paying for delivery.

The “Warehouse Only” Markdown

Deep clearance prices (.97 and .00) are almost exclusively found in physical warehouses. Online clearance is rare and usually limited to seasonal overstock. If you are looking for the steepest discounts, you must visit a store. Online sales are typically manufacturer promotions or standard markdowns, not the aggressive clearance you find on the shelf.

Price Matching Across Channels

Costco does not price match between its online store and its warehouses. If you find a lower price online, you cannot get that price in-store. The reverse is also true. If you see a .97 price in the warehouse, you cannot get that price online. Always check both channels before making a purchase, but understand that the best deal will likely be in the warehouse for clearance items.

Costco’s return policy is famously generous, but it has specific rules that affect how you should approach sales. Misunderstanding the return policy on clearance items is a common mistake that can cost you money.

The 90-Day Rule for Electronics and Major Appliances

Most electronics (TVs, computers, tablets, cameras) and major appliances (refrigerators, washers, dryers) have a 90-day return window. This applies even if the item is on clearance. If you buy a clearance TV at a .97 price, you still only have 90 days to return it. Do not assume the standard unlimited return policy applies to these categories.

Clearance Items and Final Sale Status

While Costco does not have a formal “final sale” policy, items marked down to .00 are often treated as final sale in practice. The store may still accept a return, but you may only receive a store credit or a reduced refund. Always ask a supervisor before purchasing a .00 item if you are unsure about the return policy on that specific product. For .97 items, the standard return policy generally applies, but the item must be in its original packaging.

Using the Return Policy to Lock in a Price

One advanced strategy is to buy an item at full price and then return it if the price drops within 30 days. Costco does not offer price adjustments on items purchased online, but it does for in-warehouse purchases. If you buy a non-electronics item in-store and see it marked down within 30 days, you can bring your receipt to the membership desk and request a price adjustment. This is not a guaranteed practice, but many warehouses honor it. Do not rely on this for electronics or appliances due to the 90-day return window.

Common Mistakes and How to Avoid Them

Even experienced deal hunters make errors when shopping Costco sales. The following list covers the most frequent pitfalls and how to sidestep them.

  • Buying just because of the price: A .97 or .00 price is only a good deal if you actually need the item. Buying a clearance item you do not use is a waste of money, regardless of the discount. Stick to your shopping list.
  • Ignoring the unit price: Costco is known for low unit prices, but clearance items can sometimes have a higher unit price than a non-clearance competitor. Always compare the price per ounce, per sheet, or per unit to a standard price at another store.
  • Assuming all .97 prices are equal: A .97 price on a seasonal item in January is a deep clearance. A .97 price on a staple item in July is likely a manager’s markdown on overstock, but not necessarily a rock-bottom price. Check the asterisk to see if the item is being discontinued.
  • Forgetting to check the expiration date: This is critical for food and perishable items on clearance. A deeply discounted package of cheese or a case of soda may be near its expiration date. Only buy if you can use it before it expires.
  • Neglecting to inspect the packaging: Clearance items are often floor models or have damaged boxes. Inspect the product carefully for dents, scratches, or missing parts. If the box is damaged, ask a manager for an additional discount.

Tools and Resources for the Savvy Costco Shopper

You do not need to rely solely on in-store hunting. Several tools and resources can help you track sales and compare prices more efficiently.

Third-Party Price Tracking Apps

Apps like Costco Fan and Instacart allow you to browse local warehouse prices without visiting the store. Instacart shows the current in-warehouse price for many items, though it may not reflect the very latest .97 or .00 markdowns. Use these tools to compare prices between different warehouses in your area.

Manufacturer Rebates and Coupons

Costco accepts manufacturer coupons, though it does not issue its own coupons. Check the manufacturer’s website or coupon databases for rebates on items you are buying on clearance. Stacking a manufacturer rebate with a .97 price can result in a very low net cost. Note that Costco does not double coupons.

The Costco App and Warehouse Locator

Costco’s official app includes a warehouse locator and a shopping list feature. While it does not show real-time clearance prices, it does list current promotions and coupons available at your local warehouse. Use the app to check for any special offers before you go. The app also allows you to scan barcodes to check prices, though this feature is more useful for comparing standard prices than clearance markdowns.

When to Walk Away: Recognizing a Bad Deal

Not every sale at Costco is worth your money. Knowing when to pass on a deal is just as important as knowing when to buy.

The “Too Good to Be True” Price

If a price seems absurdly low, especially on electronics or high-value items, be suspicious. It could be a display model with significant wear, a returned item that was repackaged, or a product with a known defect. Ask a manager about the item’s history before purchasing. If they cannot give you a clear answer, walk away.

Items with Limited Usefulness

Costco sells many specialty items that are only useful for a short period or a specific task. A clearance price on a seasonal tool you will only use once is still a bad deal if you have to store it for a year. Consider the total cost of ownership, including storage space and maintenance, not just the purchase price.

Products with Poor Reviews

Just because an item is on clearance does not mean it is a quality product. Check online reviews for the specific model number before buying. A low price on a poorly reviewed product is still a waste of money. Use your phone to look up reviews in the store before you commit.

Mastering Costco sales requires a blend of patience, timing, and a willingness to walk away. Focus on the price tag codes, plan your visits around seasonal cycles, and always compare the unit price. The best deals are not the ones with the lowest absolute price, but the ones that deliver genuine value for your specific needs. Shop with a clear list, inspect your purchases, and remember that a deal is only a deal if you actually use what you buy.