Decoding Costco Price Tags: Hidden Secrets for Bigger Savings

Unlock the secret codes on Costco price tags and maximize your savings, every time you shop the aisles.

By Medha deb
Created on

Costco is famous for its bulk bargains and legendary deals, but even the most loyal members may not realize how much detail is packed into every price tag on those cavernous warehouse shelves. Beyond simply telling you an item’s cost, the numbers and symbols on a Costco price tag reveal clues about discounts, clearances, special deals, and more. By learning to read these subtle signs, you can turn every Costco run into a strategic shopping spree and never miss a secret markdown again.

How to Crack the Code: Understanding Costco’s Price Endings

Costco doesn’t use flashy sale signs or dramatic price slashes. Instead, its price tags speak a coded language with special endings and symbols indicating everything from regular prices to mega-clearance deals. Here’s how to interpret them and leverage this code to your advantage.

The Essentials: What the Price Endings Mean

  • .99 – Regular Price
    Most everyday items at Costco end in .99. This signals the standard price set by Costco and typically already reflects competitive pricing against other retailers. Don’t expect further discounts unless you spot this price change in the future.
    Example: $19.99 for a 40-pack of water bottles.
  • .97 – Manager Markdown
    If you see an item priced ending in .97, you’ve found a manager markdown—or as some call it, the “clearance price.” These items have been discounted, often to move inventory that’s been lingering on the shelves or to make room for new stock. The markdown is decided by local store management, so the deal might only exist at your warehouse.
    Example: $7.97 for a seasonal throw blanket after the holidays.
  • .00 or .88 – Final Markdown, Manager’s Special, or Clearance
    Prices ending in .00 or .88 indicate a very steep markdown or that the item is on its last chance. These endings often flag items that may be floor samples, open boxes, discontinued lines, or products that managers want to clear out fast for space. Check these items carefully—sometimes they are returns or have special conditions.
    Example: $2.00 for “last one” clearance socks.
  • Other Odd Endings (.49, .79, etc.) – Manufacturer Special Pricing
    Some prices end in less-common numbers like .49, .79, .89, or .59. These usually mark items sold with special manufacturer discounts or test pricing. These deals may come and go quickly and sometimes represent extra manufacturer incentives directly passed on to shoppers.
    Example: $8.79 for a box of granola bars.

The Infamous Asterisk: Costco’s Version of the “Death Star”

Look closely at the top right corner of many price tags and you might spot a small asterisk (*). Costco insiders sometimes call this the “Death Star,” but its meaning is simple: the item is discontinued or will not be restocked once sold out. It doesn’t necessarily mean the item has been marked down—sometimes the price stays the same—but it does alert sharp-eyed shoppers to stock up while they can.

  • An asterisk signals the end of the line for this product at your warehouse.
  • Combined with a markdown ending (.97/.00/.88), it’s often your last, best chance at a deal.
  • Popular seasonal favorites often get the asterisk treatment as seasons change.

How Managers Use Price Tags to Clear Inventory

Costco store managers wield some flexibility in pricing, especially when it comes to clearing out excess inventory, returns, or discontinued products. This is most often seen in items ending in .97, .00, or .88. These are typically:

  • Last chance items—remaining units of a disappearing product.
  • Returned items that are still new but need to sell quickly.
  • Overstock from a misjudged seasonal or promotional buy.
  • Local store-only markdowns, so you might not find the same deal elsewhere.

Be cautious with final markdowns: check packaging for condition, expiration dates, or missing accessories, especially on electronics or food.

Not All Markdowns Are Created Equal

Just because an item ends in .97 doesn’t always mean it’s a huge deal. Sometimes the price might only be slightly down from the regular price. If you’re curious, ask a manager about the original price or check for a date code (often in the bottom corner of the tag). Older markdowns may get an additional price drop soon if they still don’t sell.

Tag FeatureWhat It MeansWhat To Do
.99Regular PriceBuy if it’s a staple; no hurry.
.97Manager Markdown / ClearanceGreat deal; act fast if it’s something you want.
.00 / .88Final Markdown; Manager’s SpecialDeep discount; inspect item closely and buy now if interested.
Asterisk (*)Discontinued or Not RestockingStock up if you love the item; this is your last chance at this Costco.
.49/.79/.89Manufacturer Special DealExtra savings from suppliers; compare value.

Hidden Clues to Spot Even More Deals

There’s more to a Costco price tag than just numbers and an asterisk. According to employee tips and expert shoppers, several other clues help identify whether you’re truly getting the lowest price possible:

  • Check the Small Print: In the bottom right corner of the tag, you’ll often see a date. This is the last time the price was updated. If it has been a few weeks, the item might get marked down again soon.
  • Manufacturer Coupons: Items sometimes get special pricing with manufacturer-backed instant rebates or coupons, which can show up as unorthodox price endings.
  • Price Changes by Region: Not every markdown appears at every store. Some deals are unique to your local warehouse, especially on fresh foods or items with limited distribution.
  • Bulk Buy Opportunities: Some markdowns, especially on perishables or seasonal items, offer the best value if you can use or share a large quantity quickly.

Special Pricing Conventions: When Manufacturers Get Involved

Manufacturer deals sometimes pop up as instantly lower prices, typically ending in odd numbers like .49 or .79. These prices can mean:

  • The manufacturer is funding a special price for a limited run.
  • The product might be new or undergoing a test launch in select locations.
  • Quick-sale incentives meant to accelerate turnover and clear shelf space.

Scenario Examples: Decoding Real Costco Price Tags

To practice reading Costco’s secret price code, consider these common price tag scenarios:

  • A box of cereal priced at $6.99 with no symbols: This is the regular price. You can wait to buy unless you need it now.
  • A Bluetooth speaker at $29.97 with an asterisk: This is a clearance markdown and the product will not be restocked soon. It’s both a deal and a last-chance warning.
  • A bag of frozen chicken bites at $7.00: Final markdown, possibly just at your store, likely a return or soon-to-expire. Check for freshness!
  • A new snack at $8.49: Manufacturer special, product might be in a trial run to see if it has lasting appeal.

Know When to Wait for Further Markdowns

If you spot a .97 price tag but can afford to wait—and there’s plenty of inventory—check the date code and monitor over the next week. If the product isn’t selling, you may see another price drop soon. But beware, with clearance and asterisk-marked items, waiting too long might mean missing out entirely.

Five Insider Tips for Master Costco Shoppers

  • Always scan for asterisks: See it? Decide quickly. Stock up or say goodbye to that product for good.
  • Learn your price codes: Commit the major endings—.97 for markdowns, .00 and .88 for extreme clearance, .99 for standard price, and odd endings for potential manufacturer offers.
  • Analyze the date code: Use the last price update date to anticipate additional discounts or markdown cycles.
  • Double-check the item: Especially with store-specific markdowns (.00 and .88), inspect items for packaging damage, missing pieces, or near-expired food.
  • Don’t rely solely on the price ending: Great deals sometimes hide behind regular endings or with a manufacturer coupon surprise.

Beating the System: Combine Tag Knowledge with Savvy Shopping

Mastering the price tag code is just one ingredient for maximizing savings at Costco. Team it up with other ways to save:

  • Take advantage of weekly coupon books and instant rebates.
  • Monitor price changes—Costco will often honor price adjustments if the price drops within a week or two of your purchase.
  • Plan big shopping trips around seasonal transitions, when clearances are most common.
  • Compare prices per unit with other stores, even with markdowns, to ensure the value is real.

Frequently Asked Questions (FAQs)

Q: What is the main benefit of understanding Costco’s price tag codes?

A: By recognizing special price endings and the asterisk, you can spot markdowns, last-chance items, and manufacturer deals that aren’t advertised elsewhere, allowing you to act fast and lock in savings before items disappear or return to full price.

Q: Does every Costco location offer the same clearance markdowns?

A: No, manager markdowns (.97/.00/.88) often vary by location based on local inventory and sales. Manufacturer pricing deals can also be regionally targeted.

Q: Is an asterisk the same as a discount?

A: Not always. The asterisk indicates an item isn’t coming back once sold out, but the price may not be reduced. Discounts are best spotted by the .97, .00, or .88 endings combined with the asterisk.

Q: Can I get a lower price if an item is marked down soon after I buy it?

A: Costco generally offers a price adjustment if the price drops within a certain period after purchase—typically within two weeks. Bring your receipt to member services for a refund of the difference.

Q: Is there any way to predict when a product will be marked down?

A: There’s no set schedule, but watching the tag’s update date and knowing seasonal cycles helps. Items that linger, especially with an asterisk, are most likely to see markdowns near season-end or when inventory piles up.

Q: Are .97 markdowns always a better deal than .99?

A: Usually, but not always. Sometimes a .97 price isn’t significantly lower than the original .99. It’s smart to check comparable items, watch for further markdowns, or ask a manager about recent price history.

Conclusion: Become a Costco Price Tag Pro

Interpreting Costco’s price code transforms every warehouse trip into a treasure hunt. Whether you’re seeking grocery basics, household goods, or spontaneous bargains, knowing how to read the hidden signals in Costco’s price tags ensures you maximize value and never miss out on a hidden deal. Next time you walk the aisles, keep your eyes peeled, compare the codes, and shop with confidence.