News | Strategy: Costco offers discounted gym memberships — here's how much you can save (COST)

Strategy: Costco offers discounted gym memberships — here's how much you can save (COST)

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  • Costco members can buy a two-year, all-club, 24 Hour Fitness membership package for $399.99.
  • According to Reader's Digest, the same membership purchased directly through the gym chain would cost more than $800 if paid over a two-year period.
  • Costco's membership perks help the warehouse chain to attract and retain members.

Costco is known for its membership perks, many of which extend beyond the four walls of the store, like cheap gas, vacation deals, and insurance policy discounts.

It turns out, a cheap gym membership is another.

Costco members can buy a two-year, all-club, 24 Hour Fitness membership package for $399.99, according to Reader's Digest. The same membership purchased directly through the gym chain would cost over $800 if paid over a two-year period. 24 Hour Fitness has more than 400 locations in 13 states.

The membership works in much the same way as the other products Costco sells in-store: members buy in bulk to get the savings. By paying the lump sum for two years, you save 50%.

A Costco spokesperson did not immediately return Business Insider's request for more details on the deal.

These membership perks are one way that Costco attracts and retains members. Cheap gas and travel deals are used in a similar way.

The store offers two types of gas that are exclusive to its members or anyone with a Costco gift card: premium, top-tier gas and standard gas from its signature label, Kirkland. Diesel is also available at some locations. According to a survey done by Oil Price Information Service (OPIS) in March 2017, Costco beat out major gas chains, as well as warehouse-club rivals such as Walmart-owned Sam's Club and BJ's, to rank as the cheapest place to buy gas in the US.

As gas is a recurring purchase, it's also an effective way to drive foot traffic to stores.

Its travel service has also become one of its biggest assets. During a quarterly earnings call in March, Costco CFO Richard Galanti said that the travel business is a big growth area for the company because there are few administrative costs associated with it, keeping margins high.

While it might not sound like the most glamorous way to book a trip, Costco members can't get enough of it.

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