Does shopping at Costco really save you that much?
For many shoppers, Costco is haven of to-die-for consumerism.
The deals, if used right, are sublime. The quantities, if utilized appropriately, are generous. The selection, for all intents and purposes, is fair.
Yet how exactly did Costco arrive at such a favourable reputation? Sure, a 60 pack of hot dogs for $15 might be a steal, but how many wieners can one man take? (Don’t actually answer that.)
For my money, the “Is Costco really that great of a place to shop?” debate is one that isn’t heard enough, so let’s reprise it a little.
The inspiration for this post? Suzanne Rose’s recent piece on Helium.com, Why Costco doesn’t always save you money.
An interesting read, sure, and one where Rose runs down three of the primary reasons Costco and similar members-only shopping depots might not be the slam dunks they market themselves to be.
Her three, in no particular order:
1) “You may buy more than you want and some will go to waste.” In essence, buying a 100-roll bundle of toilet paper may be a good idea because TP never goes bad and you can use it extemporaneously and without fear of an expiration date. But if you’ve bought a 25 pack of something that’s not perishable, you might be in for it. If you can’t use/eat all of what you’ve purchased at a discount, that discount goes right out the window and you’ve now wasted money.
2) "They are not cheaper on everything.” No shocker here. Costco can be great for things like electronics, meat and candy, but not everything is a steal at the big box stores. Check out this archived MSN piece on the five best and worst Costco deals. (Hint: don’t expect to find much in the way of designer clothes here.)
3) “They do not accept a lot of coupons.” Hardly an explanation needed. Costco, as Rose points out, accepts many of their own coupons but isn’t so keen to acknowledge those from other manufacturers or promo groups.
A good three, and this isn’t even considering the $50 or so Costco membership fee you’re to pay each year just for the right to shop there. A worthy charge?
Maybe. As some have pointed out, the membership cost can more than pay itself back if you’re a large family or someone who shops for the benefit of several others. If that’s the case, Costco is the place for you.
But for the rest of Canadians – say, the singles or couples or small families – is Costco really the heaven-sent retailer its reputation suggests?
Tell us: Do you find it well worth your time, money and effort to shop at Costco and similar members-only stores? Are your savings always big enough to justify the membership fee?
By Jason Buckland, MSN Money
Posted by: Zionist media control | Jul 23, 2021 9:06:59 AM
One member of my extended family has a card and we go with her about once every month to shop. And at least Costco unlike Home Depot, Canadian Tire, Starbucks, Amazon, Chapters and MSN DOESN'T financially support APARTHEID Israel.
Posted by: Zionist media control | Jul 23, 2021 9:12:52 AM
The reason I stopped paying for my own membership is that after buying an expensive piece of gym equipment, I left a few negative comments on their website and they (much like MSN) refuse to publish negative reviews. One of the reasons I shop at Sears (and used to shop much more at Costco) was I trusted that the consumer reviews of the products were honest and found out that they aren't but are just more product advertising.
Posted by: Gerry | Jul 23, 2021 9:29:14 AM
I think folks are too easily taken in. Paying a company to allow you to go shop there. My brother use to have a membership until he relized what the heck $50 plus dollars to walk in the door to buy razor blades or whatever. People stores have sales all the time where there is NO addition charge to shop there. Think about it!!!!!!
Posted by: Olivera | Jul 23, 2021 9:50:53 AM
Every year I think hard whether to renew the memebership or not. I do not think I should pay $50 to be allowed in and this year I am not going to. I also think you have to be careful what you buy. You may not save or get the best quality. In addition after you are done with shopping at Costco you still have to go the Safaway or similar to finish off your shopping since Costco does not carry all food items.
Posted by: Dean | Jul 23, 2021 10:02:30 AM
I love costco and if you get the executive membership you get 2% back on every purchace you make which works out to be more than what a regular membership is.They actually end up paying me 150$ a year to shop there. Think about that!!!!!!
Posted by: Susan | Jul 23, 2021 10:10:17 AM
Used to shop at Costco. I choked on the the $40 membership fee then, but also found that I really had to know my prices, because not everything was a deal. The deal-breaker was when I almost bought a fax machine. There was no store clerk/attendant to help, and when I checked elsewhere ( where a real live person helped me) I found that the fax i almost bought wouldn't have worked with my system. Also, as I go by seeing Big Peole with Big carts of Big packaged foods coming out of the Big store, I have no desire to join them - and become bigger!
Posted by: Laynie | Jul 23, 2021 10:26:32 AM
Every year I do the same dance....do we or don't we....but, there are a few items that I buy there consistently that make it worthwhile (even for the $50 fee).....
Almond Butter
Coffee
Dog food
Protein Isolate Powder
Frozen fruit
Vitamins
There are only 2 of us and I find I can do way better shopping the flyers for food than buying at Costco...their veggies and fruit are expensive!!! I support the local produce store for that stuff.
They sometimes have great deals, but you need to know your prices.....this year we got a great tumbling composter for a great price.
I only shop there at night.....I am so disgusted by the actions at the sample statiions that I wait until they are closed....I have never seen such greed!!
Posted by: dezerturchin | Jul 23, 2021 11:07:17 AM
I stopped renewing my membership last year, i occasionally tag along with a friend who swears by costco... but I find im doing much better shopping for stuff by watching flyers from local groceries, and as people mentioned you only complete half your list at costco since they dont sell everything you need so you have to shop elsewhere to supplement costco. Also, what really made me decide to cut it off was impulsive off the list shopping becomes realllyy expensive at costco since almost everything you touch is at least 10 bux, and when shopping with family that always happens. So that totally negates any savings you would have had in the first place!
Posted by: mariano | Jul 23, 2021 11:13:21 AM
If you are smart Costco is a good deal, just in milk we save 165$ per year, bread 45$ per year, soap, razors, honey, there are many thing, cheese, if you know what to buy you make the difference, plus it is a 10 blocks from our house, we are three people and we are saving 1700 $ per year swiching from Loblaws to Cotsco.
Posted by: Steve | Jul 23, 2021 11:33:03 AM
I agree with Dean a few posts up. Our Executive membership pays for itself with more back as a rebate. We buy a lot of our household requirements at Costco and we are happy to included items for our office and friends in our purchase whenever possible.
It all contributes to the 2% discount at the end of the year.
The discussions about having to go to other stores to do other shopping is moot. You buy fuel at a gas station, you buy lottery tickets at a convenience store and so on. No store has everything you want. Is your glass half full or half empty?
Posted by: fred | Jul 23, 2021 11:43:22 AM
Costco is a scam, the prices are higher on most items and you have to pay to shop there, there is no one to help you, you have to pack your own stuff, there's no bags or boxes and you have to pack the stuff out...are you fricken crazy? If you shop smart there is plenty of ways to save money and Costco is not one of them. I compare them to McDonalds "super size" you dont really need it and it makes you fat!
Posted by: peterantz | Jul 23, 2021 11:43:35 AM
I agree with the article that if you are single or just a couple then Costco would not be a financially sound option. For the others who posted comments negatively about Costco, take this in point.....there is no one store where you can get everything you need for the price/quality/quantity you want. Some stores, either by design or management decisions, are better suited for some things more than others and everyone's shopping habits are different.
To answer Jason Buckland's question, yes Costco is worth the membership fee...for me. I get 2% cash back on an executive membership. That covers the fee plus $20-40 back for me to spend in store. I have a vacuum packer at home to pack meat and deli to store in the freezer without any waste or reduced quality. I also have the Costco Amex that gives me 2% cashback on gas and 3% cashback on restaurants. Altogether, after the membership fee is covered, I should be getting $230-300 cashback this year.
That's my two cents anyways...
Posted by: Jatan | Jul 23, 2021 11:44:47 AM
So, reading the above comments, look at flyers to get coupons for different stores. So how much gas and time do you waste on travelling to these different stores to get maybe a dollar for a pound of potatoes.
I agree, a buyer still has to be cautious, but most stuff I buy from Costco has either been better quality or has some extra thing. For eg I bought a Upconverting DVD player 3 yrs ago which came with a HDMI cable and was still cheaper than buying just the same DVD player at Best buy and on top of that add another $35 for the HDMI cable over there.
Most people are forgetting the return policy of Costco. The most hassle free place I have ever gone through. Never had a problem in returning something. Try other stores. Also on electronics Costco extends the warranty by 1 year. Add that value when you buy at Best buy for eg.
And having the executive membership bring back around $150 each year and the Costco Amex card also bring around the same amount. So actually at the end of the day I don't pay anything for the membership. I actually gain $200 and it's only 2 of us.
Posted by: John | Jul 23, 2021 11:51:10 AM
Costco does not save money but does improve your quality of life. They don't carry top-of-the-line, but carry high-end products at lower prices. The quality of produce is excellent and prepared food is restaurant quality. They carry few choices but all are good choices and saves the trouble of browsing through hundreds of mediocre items that stores like Walmart carry. Overall the fees is paid easily by 2% return on executive membership.
Posted by: denis v.dufour | Jul 23, 2021 12:02:29 PM
i did not renew my executive membership card....if they give you back 2%,its only because they overcharge you 2%+all-year to begin with...we all know they increased their profit margin between 5&15% within weeks of all Sam's stores closures...they rely on strong yearly volume rebates from most suppliers....while Sam's stores were passing these rebates along to their consumers/customers....I miss Sam's stores.
Posted by: Jeff | Jul 23, 2021 12:08:12 PM
I was about to cancel my membership , UNTIL they started selling gas at about 5-10 cents a litre cheaper then anywhere else in the city .With a 130 litre tank enough said ,, plus they have better meat .
Posted by: Paul in Calgary | Jul 23, 2021 12:19:07 PM
Locally, Costco destroys other retailers on price comparisons of like items, however there are many items in the store that can not be compared due to size, brand, etc. For Example, a local retailer is selling a Rainbow play structure for $1899.99 (not negotiable i asked), and Costco has it on currently for $999.xx. I also like Costco's customer service, you can return an item at any time even without a receipt provided the item is defective, and you will be given a full refund on a costco cash card. I think that is extremely fair considering the lack of receipt. Their gas is consistently 5 cents a liter cheaper than any other retailer as well. If I had one gripe, the huge queue at the checkouts are disappointing, but they are building another Costco nearby. Executive members earn their membership fee back each year, at least I have, and if I didnt spend the 100$ on the membership, I would spend it on something else I am sure. I am Pro-Costco.
Posted by: Judy | Jul 23, 2021 12:32:54 PM
We shop at Costco all the time . With the executive membership , it's way worth it for us. Not only is the gas cheaper by at least 5 cents a liter, but I haven't had topay for a single prescription from the pharmacy ( my company covers up to$9 onthe dispensing fee & costco's is only $4.99 ) so not only do I save but the company does as well. They have many products we can't find anywhere else and we live in a border city so we benefit from shopping at US stores to ( with cheaper gas !!- sometimes cheaper than then the Amex) . I agree its not for everybody, but we utilize what benefits Costco offers ... cheap long distance plans , etc and definately get our membership back 10 fold ( rebate cheques worth $ 350 last year )
Posted by: Chris | Jul 23, 2021 12:37:51 PM
I don't find Costco a great value but in Halifax they are considerably cheaper on fruit and produce. We also refill the propane tanks on the BBQ's, etc., and this is about 50% cheaper than anywhere else. We factor this every year when we decide about renewing the $50 membership, the lack of staff on the floor and the absence of anyone helping you box the stuff you purchase. My wife enjoys the shopping choices and that is usually the deciding factor. :)
Posted by: Al | Jul 23, 2021 12:38:29 PM
I buy roughly 10 Mont-Tremblant ski passes at Costco every year for 58 bucks each. That's about $580 total. These passes can be used at any time during the season and they include a meal voucher. And to make it even sweeter, they are fully refundable.
At the hill, for the same deal, you'll pay around $100 each time you go - for a total of about $1000. (the passes alone are roughly $90)
And, even though you may have a connection to pre-purchased corporate passes, those things generally can't be returned and there's been more than a few years were I've been stuck with a couple because of lousy snow conditions (money in the garbage). This, for me, is easily reason enough to have a membership there and I'm single. I won't even get started on the other deals to be had. You'd have to go out of your way to get a bad deal there, and if you walk out and open a flyer out of the flyer box at the bus stop and find a better deal just walk on back and ask for a refund. Simple. No re-stocking fees or hassles... And, the membership argument is silly, it's like 50 bucks - big wow. If that's too much for you then maybe shopping for anything, anywhere, is just not your thing - stay home and complain.