I’ve been a member of Costco for 10 years now. Yep I’ve lived with roommate and had it’s been mostly just me and my DH. Yet I’ve been a member of Costco for 10 years. Have I saved money? Yes without a doubt. Granted my biggest savings happened when I lived in CA and most of the Costco’s had gas stations. Costco gas was 10 cents/gallon cheaper than anywhere else, and I drove a lot. I easily made back my membership fee in gas savings annually since my DH and I drove around 15k/annually. We saved around $100/year on gas, and the membership was $50/year. So for us the gas paid for itself and everything else was gravy.
But moving out East where there are few Costco gas stations, the savings, I’ve had to wonder if it’s been worth it? We actually ended upgrading to an executive membership to see. As it turns out we spend enough at Costco annually to nearly pay for the membership of $100/year.
But is it frugal? I clip coupons again and shop mostly at CVS for deals on health/beauty and cleaning supplies. Without coupons, without a doubt Costco (or even Sam’s club) is cheaper than buying toiletries and cleaning supplies. Costco is an even better deal if you wait for their coupons, which have increased in frequency from 3-4x/year to almost monthly. Deals such as buy one get one free electrasol packages of 80 for $10! So you actually get 160 tablets for $10, when a box of 20 costs $2.99 at CVS.
But what savings do I find? Well things like milk, eggs, cheese, fruits and veggies, and meat. I live in an area where I have NEVER found a coupon for regular food. There are no $1 off meat, $1 off veggies I hear about on HotCouponWorld. These typically are wine tags, and there are none in my state. One easy savings is milk, a gallon in the supermarket is $4.39 but at Costco $3.39. A whole dollar. Well if you buy a gallon a week, that $1 pays for your membership every year. We buy a gallon every week to two weeks, but I’ve friends I see buying 3-4 gallons a week for their kids.
Even small things like the fact that meat in the grocery stores are Choice, but Costco for the same price you get Select, a grade higher. Or cheeses are generic at the supermarket but you get the name brand at Costco for the same price. One thing is that you have to eat the bulk amount though. So food can go to waste if you aren’t careful.
Personally? I buy one bag of broccoli, a box of salad, and a meat from Costco weekly. I use all of that to make pretty much all our meals during the week. This week I bought ground beef and I’m making shepard’s pie, mapo tofu, dumplings, and indian curry. I froze 1 lb aliquots of beef and will take it out as I need it. And we always go through our veggies like crazy.
But the biggest savings about Costco? It’s a one stop shop. I don’t live near an Aldi’s or Super Walmart. And my friend’s with kids tell me, Costco is just easier than trying to get the “best” deal at 4 different stores. Instead of going to Walgreens, CVS, Market Basket, Shaw’s or Stop and Shop, they can go to Costco and know they are getting very competitive prices on anything. And if there is a coupon? They are likely beating even the weekly loss leaders.
So they are saving gas, time, and the aggravation of dragging their kids from store to store chasing deals. Perhaps though that will change if people get laid off and have more time to shop. Then chasing the best deal might be worth it.
But as far as I can tell, being a memberhip of a bulk store (Costco or Sam’s), is frugal for a wide assortment of reasons.
14 responses so far ↓
1 Meg from FruWiki // May 1, 2009 at 11:21 am
My husband and I are seeing how long it’ll be before we renew our Sam’s Club membership — and wishing we had stocked up on Ecos laundry detergent since even refilling the bottle at a refill station elsewhere in town costs over twice as much! That alone could pay our membership fee! And we also save a lot on toilet paper since we get the Pom 2-ply that isn’t even sold with the rest of the toilet paper but rather in the restaurant supply section (though, tp snobs that we are, we find it quite nice actually). I just wish it was made with recycled materials, but at least the trees probably grew in our area.
It’s also hard to find cheap fresh berries and avocados outside of Sam’s here. And the cost of other foods like fresh fruits and veggies and big blocks of cheese is hard to beat. Though, as I turn more to organic and locally grown stuff the Sam’s club card isn’t quite as useful.
Fortunately, we did find a great source for affordable and high quality meat: a locally owned grocery store where we do most of our grocery shopping now. They also have bulk bins that are fairly comparable to Sam’s prices on things like flour, sugar, nuts, rice, etc. — but without having to buy 20 pounds at a time!
Overall, we use our membership a lot less than we used to. However, I’d say that for us the membership still makes sense, though we’ll still put off renewing till we need something. (Definitely should have stocked up on that laundry detergent!)
2 Michelle // May 1, 2009 at 3:47 pm
I had been shopping the farmer’s markets, but it was getting way too expensive, so I broke down and joined Costco this Wednesday. In ONE trip, I saved $35 on items I had to purchase ($108 spent). My best example: 2.5 lb premium coffee for $8 – when it’s 1 lb for $8 at the grocery = $12 savings on a staple in our household. We’ll go through the package in about 3 weeks – so maybe 15 or more in the year = $180 saved – or the cost of membership + and extra $130 in my pocket…Plus, I do have a 2 year old AND a milk-drinking husband, so I’m one of the ‘buy 4 gal. at a time folks’ – here in texas, it’s $2.39 at Costco vs. $3.59 at the grocery, so $1.20 * 104 gal per year = megabucks staying in my pockets.
3 LAL // May 4, 2009 at 12:44 pm
Meg, I don’t use it as much, but for the stuff we do buy, it does save us quite a bit. I agree about the having savings on specific items.
Michelle, the coffee savings can be really great. I think the kirkland brand is a starbucks brand actually.
The milk as you can see is HUGE. It’s amazing how fast my friends with kids go through milk! They buy organic no less and there isn’t anywhere (Whole Foods, Trader Joe’s, etc) which has cheaper organic milk! Typically $7-8/gallon they are paying like $5, which adds up fast!
4 JoeP // May 4, 2009 at 4:47 pm
Not sure I’d label bulk stores as “frugal.” If anything, they provide a cost-effective option for certain people, typically those who consume a lot during a given time period.
For a family, it usually makes sense for staples that store well (lunch bags, foil, cereal, coffee) and also for meats. But single people may find it hard to make up the membership price due to the fact that their consumption is generally lower.
I’d also add that these places make it real easy for people to spend much more since they *feel* they’re getting a good deal without actually doing the research. After all, it is pretty easy to assume that the 100-pack of paper towels is a better deal than the comparable product at the supermarket. We did this ONCE but quickly discovered the bulk product was far inferior. Also, it is easy to impulse buy something that is not on your list because it feels like a deal.
I’d say use a list and stick to it, and also balance your pantry inventory against the expense of visiting the bulk store.
5 LAL // May 5, 2009 at 11:33 am
JoeP, it’s cheaper sometimes to buy at a grocery store chasing loss leaders. I do it sometimes, but not always. I stocked up on toilet paper and paper towels this January when it was on sale in a grocery store.
But I don’t always do it. I use CVS for health and beauty stuff because it’s a lot cheaper. But in general when it’s hard to follow all these deals Costco/Sam’s Club usually is a better buy.
6 PeterS. // May 7, 2009 at 12:26 pm
One advantage of shopping at the less crowded BJ’s Warehouse is that they, unlike Costco/Sams, mark down fresh meats, produce & chesses on or near expiration dates. These are usually on the more extravigant findings in the store. Last week, I found frenched lamb chops, marked full price at $36 marked down to $16 two days before expiration. With the help of a 22 cubic foot freezer (that is packed with every meat imaginable) and a keen eye, your family can eat filet mignon on a hamberger budget. Add in the coupon program on a monthly basis and the less crowded shopping expirence, BJ’s for me is a winner all around.
One more note on BJ’s. The B&J brand diapers & wipes are priced 35% below national brands and I have used them for my two privious children with no problem. Costco’s sells only national brands. With the birth of our third this week, needless to say that alone will pay for my 2% cash back membership with dividends!
7 fern // May 7, 2009 at 12:39 pm
Costco is good for staples. Here in CT, 1 gallon of skim costs $2.05. But some of their prepared frozen meals can be pretty pricey.
I go thru a lot of cat litter, and i can tell you that $6.99 for 44 pounds is a great deal compared to supermarket prices.
One big drawback for me: no organic produce.
You should really check your writing before you publish. Lots of missing words.
8 Audrey Mezowe // May 7, 2009 at 12:45 pm
I like the idea of saving money, but live in a tiny apartment with limited storage. Buying in bulk sizes doesn’t work in our tiny kitchen. My husband recently came home with a 6-pack of paper towels, and there is nowhere to put it. It is sitting in the corner of our living room. If we bought everything in bulk our apartment would be looking like the submarine in the movie “Das Boot.”
9 JoeP // May 7, 2009 at 2:26 pm
Audrey: leave it in the trunk of your car. No shame in that, and it will be right there the next time you need to clean your auto glass!
10 LAL // May 8, 2009 at 8:25 pm
PeterS, thanks for the tip about BJs. I should check it out.
Thanks fern for the tip. I will try.
Audrey, I used to live in 500 sq ft with a dog. We still had tons of room for storage. We were Costco members, what I did back then was build in shelving in our Closet and outdoor closet where our w/d was.
I think a lot had to do with the fact that we didn’t have much stuff.
11 Michelle // May 11, 2009 at 12:31 pm
“Michelle, the coffee savings can be really great. I think the kirkland brand is a starbucks brand actually. ” – LA LA LA LAL!I don’t hear you *hands over ears* (but you might be right – Sbux (4bux) bought Seattle’s Best). I don’t want to lose my “I hate 4Bucks” credibility…
Just went on my second trip to Costco yesterday and bought just what was on my list – butter $3 saved on 4 lbs, dogfood $4 saved, pull-ups $6 saved. I was really impressed I was able to do this, because JoeP is right – they entice you to buy more to save more! Some people maybe won’t be able to restrain themselves, especially if the store isn’t close. Since ours is 2 miles from my house, I can drop in frequently if necessary…
12 LAL // May 11, 2009 at 1:31 pm
I don’t drink coffee and I don’t go to starbucks. But everyone else tells me! LOL. I refuse to go to them after once I had to use the restroom and was there with friends, and since I didn’t buy something I wasn’t allowed to use the restroom. I am not a coffee drinker!
I usually go in once a week and buy my necessities, especially meats, veggies, cheese, and milk.
13 Ms. MoneyChat // May 11, 2009 at 1:49 pm
good to hear! i just purchased a costco membership. with my purchase i was given $35 of coupons so if i use those (which i plan to use most, like the free rotisserie chicken), then the cost of my membership will immediately begin to pay for itself.
14 LAL // May 20, 2009 at 10:27 pm
Ms. MoneyChat, how’s costco working out for you?
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