(note: for those that don't know, a "big box" store is the industry description for a freestanding "chain store"...think Best Buy, Lowes or, in the case of this post, Costco/Sam's/BJ's)
I got an interesting phone call from my sister a short while ago:
Me: Hello?
Her: I gotta tell you - I'm pretty angry right now!
Me: Ok - what happened?
Her: I just came back from BJ's and I spent about $300 and now I think I got ripped off!
Me: What did you buy?
Her: boneless chicken - it was $1.99 per pound and I bought 15 pounds for the Superbowl party!
Me: Why didn't you go to Superfresh this week? It's only $1.68 per pound this week!
Her: I KNOW! That's why I'm mad! I pay good money to belong to a warehouse club because it is supposed to be the cheapest prices...and now I'm thinking that it isn't the cheapest!
Me: Umm - you do realize that I have a website that talks about this, don't you?
But then I started to think...I haven't talked about it. I guess it is time to do so!
I remember about 15 years ago when I first heard of a warehouse club. My sister-in-law belonged to one and the only way that you could get a membership is if you worked for a certain employer, or banked at a certain bank. I wasn't the psychotic couponer that I am now, but the prices seemed good. A few years went by and soon stores like Costco, Sam's and BJ's were open and everyone belonged to one...and it was great in the beginning!
And then something happened...I started checking unit prices and found that I could do much better at the grocery stores on most things if I just paid attention to sales. I didn't even necessarily need to use coupons (although that obviously does help).
We have been conditioned to think that buying in bulk will always save us money...because for many years it DID save us money. That is no longer the case. In many cases, buying in bulk only saves you a trip!
Please don't misunderstand me - I'm not knocking warehouse clubs (well - maybe I am a little). For things like housewares, gifts and books, their prices usually can't be beat. If we want to make a major purchase like a TV, computer or camera, Costco is one of the first websites that we check. And just like Aldi, if you live in an area where the stores don't double coupons or don't have enough competition to inspire them to offer good sales, a warehouse club may be a good alternative for you.
But for everyday items, you can do much better at the grocery store just by watching the sales. Even the one "holdout" that I had (canned diced and crushed tomatoes) can be found much cheaper now that Muir Glen is being so generous with the coupons.
It's all about unit price. The same thing happens at the grocery stores. The bigger size isn't always the best value for the money!
Beyond that - grocery stores and "superstores" (like Target and Walmart) jumped on the bandwagon a long time ago. Once upon a time, Costco/Sams was the only place that you could get a 200 oz bottle of Tide for $17. Now you can that same bottle at that same price at almost every grocery store and supercenter in the country. They got tired of losing money to the warehouse stores and started dedicating entire aisles to "bulk items" at just about the same price as the warehouse clubs.
And one last thought: has anyone ever got out of Costco for less than $50 unless you were just running in for one thing and your husband was waiting in the car with the motor running? I don't think that I have ever been able to get in & out of Costco for less than $100. It's one of the reasons that we haven't had a membership in about 2 years.
Once again, I am not knocking warehouse clubs. I remember getting quite a few great deals on produce and even more deals on gifts. And anywhere that sells a huge hot dog and a soda for only $1 (refills included) can't be all bad!
I just don't think that the savings justify the huge membership fees these days.
If you are a dedicated warehouse club shopper, can you tell me why? Do you feel that you save money by buying groceries there? Is it just for the convenience?
Leah
Hi! Love your blog! I live in Wa state and have a Costco membership. However, I get it free through a friend who has me on his family membership plan. I think I save money on milk, canned beans, canned organic tomatoes and gas. However, I buy Costco brand toilet paper, paper towels and Kleenex brand tissue. At first I thought I was getting a good deal on them...now I'm not so sure but am totally hooked because of the conveniece of having them in bulk size...there is something fun about shopping at that place. Our stores up here dont double and we dont have an CVS or Aldi either:( All in all I think our Costco membership is helpful and saves us money...although I have to be very disciplined and go in there with a goal to save money. Thanks for talking about this issue!
Diana
I have a Costco membership but have started using it less and less. At first (1.5 years ago) I thought it was the place to get the best deals but believe that since I've started seriously couponing and playing the drug store game (can't beat 16 jars of peanut butter and Ragu from Walgreens for only 68 cents total). Prices have gone up in the last six months at Costco so I've stopped buying organic milk there (and now get it at the local health food store for only $3.00/half gallon) or Bisquick there, for example. However, it's still the cheapest when it comes to cheese in bulk. It's only $2.79-2.85 per pound. I can't find cheese any cheaper than that. Whether that, along with a few other things like cat litter and frozen fruit, justifies the $50 membership, I don't know yet.
Annie H
I do shop at a warehouse store. We move so often that I don't have much opportunity to figure out the local stores to my satisfaction. I do a price book every time we move comparing our commissary, up to 4 grocery stores, and the local warehouse (currently, we have a Sam's). After that I have the book plus weekly ads in the mail (same story with a newspaper -- we don't live in one place long enough to have a subscription) and a menu plan. I can usually feed a family of 6 on less than $300 a month if it isn't a birthday month. I have yet to live in a place serviced by one of these excellent sites, so cannot take advantage of the e-heads up.
Annie H
Oh, forgot to mention: I do get gas there and it saves me about $5 a month between a van and a truck. Also, milk is almost $1 cheaper per gallon and only once have I seen cheaper milk at a smaller store. The bananas are an unbeatable price as are saltines, butter, cheese (as another commenter has mentioned), bulk chicken, bulk hamburger patties, and bulk spices. I think the membership pays for itself after just a couple of months. (but, once again, not playing the coupon game)
Julie
We dropped our BJs membership last year after we realized we were paying $40 a year just to buy diapers and cat litter in bulk. We don't need diapers anymore (thank goodness) and we found a pet supply store with good cat litter prices.
At first the bulk buying seemed like a good idea, but since I learned how to use coupons, the grocery and drug stores have much better deals. And it seems that most of the time the better deals mean getting the smaller size.
Mandy
We have a BJ's membership and I love it. Sure, off the shelf sometimes it's the same prices as in stores, but when you use a BJ's coupon and a manufacturer coupon for an item, you can't beat it. I get all the diapers and formula there. I also got a great deal on three packs of Purdue Nuggets for $3.99 yesterday (reg. $7.99 and I had a $2 BJ's coupon and $2 manufacturer coupon). 51 ounce cans of powdered BJ's formula is $19.99. 23 ounces of Similac formula at Target is more than that, plus you can use the $5 formula check at BJ's.
Barb Szyszkiewicz
I am a longtime Sam's member. I go there about once a month and buy enough half & half to last me until the next time (it's HALF the price of any supermarket) and also my nonprescription medications & vitamins. That alone saves me more than the price of my membership over the year. Beyond that, I buy bread flour, yeast, jasmine rice and CERTAIN spices. I don't need everything in a big jar!!
Oh yeah, and Goldfish crackers. $7 for the giant box.
I think the key to shopping in those stores is discipline and paying attention to the prices. You have to be willing to go somewhere else to get the better deal.
Heidi @ GGIP
We dropped our costco membership years ago. There are very few things that are cheaper there with the dawn of the internet and my use of coupons. Plus, like you said, the other deals are too tempting and I spent too much money there.
Darla
We just got a Sam's club membership when they made it $15 after giving you a $25 gift card.
I find that cheese and unsalted butter are much cheaper there than I can get them for here. But unless something magical happens between now and then I doubt we renew the membership next year.
Lisa
Where I live it is hard to beat boneless chicken breast for the $2 a pound that I can get at Sam's. Some of the staples like eggs, milk, cheese, and frozen veggies are also very hard to beat. But best of all is the gas prices. Many times even with the Kroger gas discount Sam's is cheaper. If you need formula you CAN NOT beat Members Mark formula prices. I pay for my membership in just one month with the formula alone.
Mindi
Thanks for your comments everyone!
I think that the value of a Sam's/Costco membership will really depend on where you live. Where I am, there are 4 major grocery stores within 5 miles and all 4 of them double coupons. For people who don't have it that good 😉 , the warehouse clubs ARE probably the best deals!
And thanks for the reminders of some of the items....I do remember Costco having great prices on butter and American Cheese!
Kroger deals
Nice post. You are on my RSS reader now so I can read more from you down the road.