Save Big on New Costco Membership with Groupon or Living Social

The Offer

Direct Groupon Link / Direct Living Social Link

• Groupon and Living Social are selling Costco membership vouchers which come with a free $20 Costco Cash card and free coupons for paper towels, flavored water, and pizza

The cost of membership is the standard $60, so you pay regular price and get back the $20 Costco Cash, plus the coupons.

They peg the full value as $215.63. For just $60 you’ll get:

• A One-Year Costco Gold Star Membership, which includes a membership card for the primary cardholder as well as one free Household Card
• $20 Costco Cash Card
• Exclusive coupons for three free Kirkland Signature (TM) products ($35.63 value*):
  • Free Paper Towels Create-a-Size 12/160 ct ($15.69 value)
  • Free VitaRain Zero Flavored Water 24/20 oz bottles ($9.99 value)
  • Free Food Court Whole Pizza ($9.95 value)
• $25 off an order of $250 on Costco.com
• $75 Costco Cash Card toward Costco Travel to the Caribbean, Costa Rica, Europe, Hawaii, Mexico, or the South Pacific (excludes cruises)

The Fine Print

• Valid for new members only. Not valid for renewal of an existing Costco membership. Not valid for those with a current Costco membership nor for memberships that expired after April 1, 2017.
• The one-year Costco Gold Star Membership Activation Certificate includes one free Household Card, which can be used by a spouse or family member aged 18 or older living at the same address.
• Offer valid at U.S. Costco locations only.
• Promotional value expires Nov 1, 2017. Amount paid never expires. If you do not redeem your voucher by the promotional value expiration date, you will receive a refund equal to the amount you paid for your voucher. 
• Limit 1 per person, may buy 1 additional as gift.
• Limit 1 Costco Cash Card per customer/household.
• Expiration unknown.

Our Verdict

Personally, I’d value the paper towels at close to their cost, which brings down the cost another ~$15. The water and pizza can be real value as well. A lot of people will be able to get value out of the $25/$250 costcto.com deal and possibly the $75 Costco Travel deal.

Adding together the shopping portal, Costco Cash card, free coupons, and credit card rewards or discounted gift cards, the cost for this membership deal can be close to zero. But remember again, this is only for new members.

Let’s play out the purchase on each of the two venues:

Living Social

• Go through Mrrebates for 8% back ($4.80)
• Get $20 Costco Cash card back ($20)
• Get the coupons, let’s put their value at $30 ($30)
• Pay with your INK card on Living Social using Paypal for 5x (worth at least $3)
• Cost of membership (-$60)
• Total cost: $2.20

Groupon

• Go through Mrrebates for 6% back ($3.60)
• Get $20 Costco Cash card back ($20)
• Get the coupons, let’s put their value at $30 ($30)
• Pay $50 with a Groupon gift card and the rest with a credit card – get the $50 gift card for $45 from PPDG (this deal or this deal), you’ll net 250 INK points ($2.50) [alternatively get the $50 gift card for $45 through Discover redemption]
• Cost of membership with gift card discount: $55
• Total cost: free ($1.10 moneymaker)

Important Update: You are actually better going through another portal other than Mrrebates since the terms there exclude Costco Membership from earning cash back while other portals do not.