Costco Cash Card: How to Calculate for a Lennox HVAC Purchase?
Costco is a great retailer and has put more resources into the HVAC category. Lennox and Costco have partnered so Lennox is the exclusive HVAC Brand offered by Costco. This is a very impressive endorsement as Costco has always been known for the quality merchandise it selects for its members.
Members earn a CASH card rebate through Costco. Lennox International pays the rebate amount to Costco so its members get the Costco cash card. The amount varies with the purchase amount of the Lennox Equipment up to $1000. Executive members earn even more as this purchase is reported to Costco and is subject to the 2% additional rebate annually. American Express Costco Card members can earns the rebate from AMEX as well if it is paid for on their AMEX card.
Each State has rules governing the sale and installation of HVAC equipment so the following is relevant for Alabama. Check your store for state specific rules.
This may look crazy but follow along as it can get complicated.
When we propose an HVAC equipment installation, the price we leave is a full after tax and installation price. This can be confusing as some non Costco contractors will under bid a job and get started to then add on the labor or sales tax. Watch out!
Example $10,000 HVAC System Proposal
In Birmingham, Alabama, we must first remove the installation fee of 10%. ($1000). That payment (check, cash or credit card) is made directly to the contractor. (Freedom Heating and Cooling). The remaining $9000 is paid to Costco. This number includes tax of 9% in Hoover, Alabama, the store location. We take the $9000 amount and reduce by the tax.
$9000/1.09 = $8256.88
Costco Cash Card system for these large purchases will only accept whole dollars. We round down to $8256 as the purchase amount. This gets tax added to it.
$8256 * 1.09 = $8999.04
This is subtracted from the $10,000 HVAC System proposal for an amount of $1000.96 paid to us.
Pay Freedom Heating and Cooling $1000.96
Pay Costco $8999.04
Total Payment $10000.00
Costco cash card is based on the cash register transaction of $8256. Costco cash card is not earned for the installation fee or the tax paid. This example earned an $800 Costco cash card.
How do I get my Costco cash card?
After the transaction is complete at the Hoover, Alabama Costco location, a one page form is sent to the Costco cash card processing location and a Costco cash card is sent directly to the member based on the member ID number. Make sure this number is correctly entered on the form as this has been a problem and resulted in the member not receiving their Costco cash card.
Whether it is an AC or a heating issue or a concern with calculating your Costco Cash Card, we are here to help! Please call 205-444-4444 and we will be glad to assist you with any question you may have.
