I’m a Financial Counselor: Here’s Why I Prefer Costco Over Sam’s Club
Being a savvy shopper doesn’t have to mean sacrificing quality or ignoring your values. You can still save money while getting great products, but you have to know where to look.
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One place to find great deals is at a membership warehouse, such as Costco or Sam’s Club, where shoppers can buy in bulk to save money on a cost per unit basis. You can also find good deals on other items that don’t need to be bought in bulk, such as clothes, gas and even services and travel perks, like discounted car rentals.
Not everyone views the various warehouse retailers equally, however. Markia Brown, accredited financial counselor at The Money Plug, prefers to shop at Costco over Sam’s Club and other big box stores for several reasons, including:
1) The Reputation/Quality of Costco’s Store-Brand Items
Brown prefers Costco’s in-house Kirkland Signature brand versus Sam’s Club’s own store brand, Member’s Mark, noting that “the quality of their products at the price point they offer is unmatched. From clothes to food, in comparison to Sam’s Club’s Member’s Mark, we get more bang for our buck, and our children don’t bemoan that we’re sacrificing quality while trying to be frugal.”
2) The Clothes
Costco also sells a wide variety of clothes. While the store does sell some name brands, Brown said her family loves the Kirkland label clothes. “With five kids, clothes shopping can get pricey, but Costco covers clothes that last a long time with a price point that doesn’t hurt my pockets.”
3) The Gas Prices
A Costco membership also enables you to fuel up at relatively affordable prices at many of the retailer’s locations. “California is notorious for its high gas prices,” Brown said, “and though it’s still higher than what I’m used to paying on the East Coast, I don’t have to stress as much because Costco is always lower than my neighborhood gas station, including Sam’s Club. With a minivan and a large SUV, we try to save as much as we can at the pump, and Costco helps us achieve that.”
Additionally, Costco offers what’s known as Top Tier gas, while Sam’s Club does not, according to Verify. Per Consumer Reports, Top Tier gas is better for your engine, which can save you money in the long run. So even if some Sam’s Club locations have lower prices at the pump, you may still be better off financially by filling up at Costco.
4) Employee Well-Being
In addition to saving money, Brown says she enjoys shopping at Coscto over Sam’s Club based on Costco’s employee culture. Costco has long been known for employee-friendly practices, such as providing relatively high pay for retail workers. The company also scores higher than Sam’s Club based upon reviews on employment sites like Indeed and Glassdoor.
Brown says she’d prefer to spend her money in a way that aligns with her family’s values, so employee well-being tilts the scales of her favor towards Costco. “Even though I have to spend money, being more conscious of where we spend our money is important to our family,” she said.
How to Save Money at Costco
If you prefer Costco over Sam’s Club like Brown does, consider some of her money-saving tips. As she mentioned, the Costco Kirkland Signature store brand is one reason she chooses Costco over Sam’s Club, and picking that over name brands can save you money.
“Usually, you’re sacrificing taste when it comes to food or quality when it comes to household items, but with Costco you’re not sacrificing anything and saving. It’s a win/win really,” she says.
She also recommends using Costco’s “very generous return policy. If you’re unsatisfied with anything you’ve purchased, simply take it back and get a refund.”
Another tip is to “take advantage of instant rebates in-store as well for additional savings.” These instant rebates do not require clipping coupons but are instead essentially sale prices. For example, an item might be marked as $14.99 but have a $5.00 instant savings deal to bring the price down to $9.99 when you’re at the register.
Lastly, advised Brown, be prepared for your shopping trip, rather than going in haphazardly and grabbing whatever looks good. Otherwise, you might buy too much bulk food that goes bad before you use it or buy unnecessary items. “Shopping at Costco, or really any big box brand store, the best thing to do is know before you go,” she noted. “You don’t have to plan to buy everything in bulk; create a spending plan that prioritizes items you consume the most and set a spending limit.”
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One thing to note is that a Costco membership generally starts at higher prices than Sam’s Club memberships. The normal price for a Costco membership starts at $60 annually, while Sam’s Club starts at $50, though at the time of this writing Sam’s Club is running a promotion through December 20, 2023, for a $19.99 annual membership. Still, with its cost per unit savings as well as such perks as Top Tier Gas, you may still save more money in the long run with the benefits of a Costco membership.
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This article originally appeared on GOBankingRates.com: I’m a Financial Counselor: Here’s Why I Prefer Costco Over Sam’s Club
