Costco Clearance Codes: What the .97 Price and Asterisk Actually Mean

Costco hides its clearance system in plain sight. There's no orange tag, no "CLEARANCE" sign, no shelf label. Instead, the entire markdown story is written into the price ending and a tiny asterisk in the top-right of the price tag. Once you can read it, you spot deals other members walk right past.

The price-ending code

The number after the decimal point on a Costco price tag is not random — it tells you exactly what stage of pricing the item is in.

Ends in .99

Standard, full price. The item is in regular rotation and will keep being restocked.

Ends in .97

Manager markdown. This is the most important code. The store manager has dropped the price to clear it out — overstock, end-of-season, or being discontinued at this warehouse. There will not be a deeper discount; this is essentially clearance pricing.

Ends in .79, .49, .29, .89

Manufacturer special or final clearance. Often the very last drop before the item leaves the warehouse entirely. Take it now or never see it again.

Ends in .00

Manager-marked, "this is the final price." Often paired with the asterisk (see below) signaling discontinuation.

The asterisk

Look at the top-right corner of the price tag. If there is a small black asterisk (*), the item is not coming back. Costco has stopped reordering it. Once the inventory on the floor is gone, that's it. Combine an asterisk with a .97 price and you are looking at the absolute last clearance window.

Reading the combinations

• .99 + no asterisk → Regular item. Don't rush. Wait for a sale or warehouse coupon book.
• .97 + no asterisk → Manager markdown, probably overstock. Item will likely come back at full price after this batch clears. Good buy if you actually need it.
• .99 + asterisk → Being discontinued but not yet on markdown. The .97 drop is coming — but the inventory may not last. Risk/reward call.
• .97 + asterisk → The unicorn. Discontinued AND marked down. This is Costco clearance gold. Will not be replenished. May go to .49 or .29 if it sits, but by then there is almost nothing left on the pallet.

Where the deals actually live

Costco does not put clearance items in a single section. They stay in their original location on the floor. The dedicated end-cap pallets up front are usually new arrivals, not markdowns. Walk the perimeter aisles and scan tags in the top-right corner for asterisks — TVs, kitchenware, holiday seasonal, and small electronics are the highest-frequency clearance categories.

Timing

The biggest .97 + asterisk waves hit in January (post-holiday electronics), early March (winter clothing), late August (back-to-school crossover), and mid-November (Halloween/early holiday overstock clearing for Black Friday space). If you only check Costco for clearance four times a year, those are the four trips.

Membership ROI note

The Executive membership ($130/year) returns 2% on all purchases up to $1,250. If you find a single .97 + asterisk deal that saves you $200 (common on appliances, mattresses, or large electronics), the membership has effectively paid for itself plus the upgrade.

For a deeper look at retailer-specific clearance systems, see our guides on Walmart clearance timing and Target's clearance markdown schedule.

Browse pre-validated clearance deals across all major retailers →