The urban legend in retailing is that membership warehouse clubs like Costco, Sam’s Club and BJ’s break even on selling goods but make all their money on annual membership dues.  

Whether it’s true or not it seems that more and more retailers are rolling out paid membership programs in an effort to both keep customers loyal to their stores and make some extra money.

The latest to give it a test are Best Buy
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and Urban Outfitters
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but in addition to the warehouse clubs, other retailers like RH
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, Bed Bat
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h & Beyond and REI have all had paid programs for some time. Fees range from $20 lifetime at REI to what looks like the most expensive, $199 at Best Buy.

Of course perhaps the biggest membership program is Amazon
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Prime which counted some 142 million members last year and is projected to grow to 153 million by the end of next year. Members pay $119 a year to be part of Prime and while free two-day delivery is the big draw also included are any number of additional perks including the Amazon video streaming service and assorted freebies on music, books and image storing. (The warehouse club legend has since been extended to Amazon, by the way, with many observers believing it is a main source for the company’s profits, too.)

All these programs are separate and apart from programs and clubs that many retailers operate that require no annual fee or dues. All of them seem to have been spurred on by the loyalty programs that the airline industry began decades ago and that have become entities onto themselves, often earning serious money for them.

Today many retailers offer membership programs with a variety of benefits, all designed to get customers to buy from them more often. Supermarkets have become big membership supporters and other well-known retailers with large programs include Starbucks
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, Target
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, Nordstrom
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, Ikea and most drug store chains. ShopRunner is the latest to adapt the membership model.

Best Buy Beta, which is now being tested at select stores in Iowa, Oklahoma and Pennsylvania, is set to be expanded this month to stores in Minnesota, North Carolina and Tennessee for a total of 60 locations by the end of the month, according to press reports.  An existing program called Total Tech Support, also at $199 per year, remains available for customers outside the test program areas.

Shoppers who have the Best Buy credit card get a $20.99 discount off the base rate and all members get free unlimited tech support through the retailer’s fabled Geek Squad service, free shipping with no minimum and assorted goodies like longer warranties, free installation on most products and pricing deals on select merchandise. There is also dedicated “concierge” service on call all the time should you have an issue with your washing machine at three in the morning.

“The goal of Best Buy Beta is to create a membership experience that customers will love,” said Allison Peterson, the company chief customer officer, “and to leave them feeling confident throughout their relationship with Best Buy.”

The Urban Outfitters program, called UO UP and covering all the company’s retail nameplates including Anthropologie, Free People and Nuuly, was announced in an email to customers: “We’re testing our new membership program in your area (in this case Atlanta). Get in early and enjoy.”

For $98, members get an immediate $40 gift card, 15% off every purchase — “and yes, that’s on top of promotions, sales and special offers, too”— and free shipping and free returns on all orders. There is some small print excluding a few premium brands, furniture deliveries and orders from a handful of far-flung locations. There are also “members only benefits and events,” as yet unspecified.

While that price is on the higher side of the paid membership club spectrum Urban makes it a point to say that after the gift card, it’s $58 for the first year “which is a pretty good deal, tbh” (“to be honest” for those not e-speak literate).

It’s unclear how big a test this program is or if and when the retailer might expand it nationwide. “This offer is a test and we reserve the right to make changes at any time,” it says, providing a possible out should it not work the way the company hopes for.

Many retailers will be watching the Urban and Best Buy programs to see how they fare. Both RH and Bed Bath have said they are pleased with their programs with RH saying members account for a very large percentage of the company’s overall revenue.

Don’t expect secret handshakes and obtuse passwords but if these new entries prove to be successful, paid membership programs could just be the next big thing in the retail business as more companies…well, join the club.