Sam’s Club? Costco? Or Neither? Is a Warehouse Membership Even Worth It?
I asked for one thing as an anniversary gift last year. You may think I longed for a fancy night out on the town. While not opposed to the idea, it didn’t make the list. Jewelry? I barely wear what I already own. Flowers? My husband is deathly allergic. A sentimental gift has been my heart’s desire in past years. But last year, at the tippy top of my wish list was a membership to Costco. How romantic, right?
Savvy shoppers frequently email me to inquire if a warehouse club membership is worth the price paid. My answer is different for every budget. Does anyone need a membership to Sam’s Club or Costco? No. Needs are food, water, air, shelter, clothing, and love. Can you save money at one of these retailers? Absolutely. Will you spend money you didn’t intend to spend? If I was shaking a Magic 8 Ball, the response would be “Signs point to yes.”
However, there are ways to both save money on a membership and maximize its use while in store. Plus there are some products that truly cost less. Let’s think through the ways to make the most of a membership and avoid potential pitfalls.
Score a Membership Deal
Before you trot down the road to get your photo on a brand new card, pause to do some research. Begin by asking your employer if they offer membership to a warehouse retailer as a job perk. Some larger companies do and it never hurts to investigate the opportunity. If none exist, don’t pay full price.
In past summers, both LivingSocial and Groupon offered membership deals for Costco and Sam’s Club. So if you can be patient enough to wait, time your membership onboard with one of these discounts. Both deals offer a discounted membership and/or coupons good for free products that equal the initial cost. However, they’re good only for new members only and not existing account holders.
Currently, Sam’s Club is offering a $45 basic membership with $20 worth of “Instant Savings” coupons through their website. Costco comes in at a slightly higher cost at $60. Right now, I don’t see any freebie extras with that membership. However, they have conducted similar promotions in the past. There are offerings at Costco for new members who are college students or members of the military, though.
How to Keep From Overspending
As stated above, I do believe you can save money on products at these retailers. However, it’s smart to always calculate the unit price. Just because something is in the biggest box you ever imagined possible doesn’t mean it comes with the lowest price tag.
You’re also going to have to exercise some self-control. If you’re truly using your membership to shop for household necessities, you can’t roll out of the club with a new big screen TV and a diamond ring. The prices on many products really are lower than anywhere else. That means you’ll need to put on your blinders or use proactive measures to prevent giving into temptation. From using cash only to making and then sticking to a list while you shop, know your weaknesses and protect yourself against overspending.
Which Store is Best?
Over the years, we’ve been both Sam’s Club and Costco members. Each store has unique products and opportunities to save and spend money. Based on membership expense alone, Sam’s Club has the lowest price right now. Costco tends to offer benefits that you can’t find at Sam’s and vice versa. So it really comes down to personal preference and needs in the end.
The following products are my favorites when it comes to shopping at Sam’s Club or Costco. These are the items I find to be priced more competitively than online shopping, big box stores, grocery stores, or other retailers.
Cakes: Graduations, birthdays, family gatherings, office parties – if you need a large cake you’re not going to find a better deal than at warehouse club. Both Sam’s Club and Costco dish up frosted treats.
Swimsuits: Especially for kids, warehouse clubs offer amazing deals on name brand, high quality swimsuits. You’re unlikely to find prices lower elsewhere.
Rotisserie Chicken: While you can find these at a low price in nearly every grocery store, they come in a dollar cheaper for only $4.98 at both Sam’s Club and Costco on a regular basis.
White Vinegar: I use white vinegar to clean everything. For years, Sam’s Club held strong with the best unit price. Again, always double check the price and compare to your grocery store.
Books: The selection isn’t what you’ll find at Amazon or Barnes & Noble, but most popular new releases make their way to the flat tables at Sam’s Club and Costco. And, they come in at a more affordable price.
Car Rental: The travel discounts at Costco won my husband over. The amount we saved on a car rental for last summer’s family vacation covered the cost of our membership and then some.
Electronics: If you’re in the market for a laptop, a printer, new high tech headphones, or even a new big screen TV, a warehouse store usually has the best prices on the highest quality. Just be sure you do price comparison to ensure it’s the best fit for your budget and your needs.
Mattresses: A handful of years ago, we needed to replace two mattresses in our home. After shopping a number of mattress stores in our community, we purchased both at Sam’s Club due to the price point for specific brands.
Gift Cards: I love any purchase that can be made under face value. Anytime, we have a gift card need, we head to a warehouse retailer to get more bang for the buck. I even once purchased Disney gift cards at Sam’s Club to book our resort! We saved $150 and used the money (also in gift cards) to buy food and souvenirs in the park.
Vitamins and OTCs: Both Sam’s and Costco feature large health sections where you can find enormous bottles of supplements and multipacks of over the counter drugs. The regular prices easily beat out the pharmacy and big box retailers. Neither store takes coupons, though. So if you can find a coupon to match with a sale you may be able to score a slightly better deal, but it’s not guaranteed.
Gasoline: Some, but not all, Costco and Sam’s locations feature gas stations. Members can fill up for several cents less per gallon.
Snacks: My dad used to joke that we could eat lunch at Sam’s Club just by snacking on samples. The snack bar at both Costco and Sam’s Club also feature fantastic deals if you need a quick bite before or after you shop. Large bottles of water are only a quarter at Sam’s and you can get a drink with a foot long hot dog for only $1.50 at Costco.
Store Brands: Whether it’s Member’s Mark at Sam’s Club or Kirkland’s at Costco, the generic game is strong at both warehouse clubs. Whether you’re purchasing a flat of water or bulk paper towels, the products are quality and the prices are low.
Let’s be honest, we can all survive without a membership to a warehouse club. And if we’re not careful we can go overboard at any store. But savvy shoppers who count the cost can make the most of their membership cards. And maybe they’ll enjoy a sample or two along the way, too. Here’s to hoping this year’s anniversary gift includes a membership renewal.
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This post contains an affiliate link. That means when you get a great deal, learn about a way to save, or maybe even something for free, I may end up making a small commission. All prices are subject to change.
