For years my family shopped at Costco. We went every month to buy paper products, groceries, and browse all the aisles. Each time, we expected a full cart and a long receipt. We never bought just one or two things.
We always deviated from the list because the impulse buys were too tempting. The average Costco shopper spends $114 a trip and shops every two weeks. That’s over $2,700 per year.
Costco knows how to design a store. Milk, eggs, and rotisserie chickens are in the back. Seasonal items, toys, and clothing live in the middle so you walk by them twice. Expensive electronics stop you in your tracks at the front door. The store’s natural flow encourages you to walk by expensive items first. The groceries (which are what you came for in the first place) will be last as you travel the store.
Shopping at Costco is an event. You need to allocate several hours for this trip. Generally the items on the list are spread across the store because of the strategic design. Since, we worked full time, we often shopped on a Saturday, the most crowded day of the week which extended our trip.
Hindsight and a desire to live with less stuff, helped me see all this. While I wish I could tell you I had an epiphany while browsing the books and walked out with an empty cart, I did not. But I did realize the hazards of buying in bulk and I quit Costco because of them.
Your Family Your Rules
If a Costco membership serves your family’s needs, I fully support it. And reading this will help you be a savvy shopper in Costco, saving you time, money, and storage space. Here are the 5 reasons why I canceled my Costco membership.
Duplicates
Shopping in bulk leads to duplicates. Common duplicates sold at Costco are scissors, Sharpies, goggles, and sunscreen. Everything comes in a pack of 3 or more.
However, more is not necessarily better. In fact, when you own multiples of an item, you are less careful because it feels normal to lose one or two.
But owning more leads to lost items and waste because you can’t keep track of all of them. It’s much easier to buy one high quality pair of scissors and put them back where they belong. Owning fewer items also means you have less to take care of and things stay organized.
How many times have you looked for a pair of sunglasses? You know you own several and yet none can be found. Conversely, I own one pair of high quality sunglasses that are well cared for and never lost.
Overbuying
Everyone loves the free samples at Costco. Costco loves advertising them because they encourage you to buy more.
Have you ever sampled a new frozen food snack and found your kids begging you to buy them? I’ve worked with dozens of clients who buy in bulk. Inevitably, we come to an item, labeled “My Kids Won’t Eat This Anymore and I have 100 of Them.”
There’s also the category known as, “We were at Costco and thought we needed more ranch dressing. Now we have 4 of them.” (You’ve seen the size bottle of ranch dressing right?)
Overbuying often leads to items expiring before you consume them. So, any cost savings is eliminated when the items expire or spoil and have to be thrown away. How about the giant bag of tortilla chips? Have you ever found it open and half-full of stale chips? Or have you made the mistake of opening several bottles of the same item?
By shopping at Costco, my clients “stock up” but often forget to plan space to store the items. I recommend allowing the Costco warehouse to store them for you until you need them. 😉 Or establish a boundary for how many rolls of paper towels you can store at one time and designating storage space for all the items you buy.
Excess Packaging
The excess packaging at Costco is wasteful. You can buy sunscreen anywhere else with a lot less wasted plastic. The same goes for many products purchased here. Boxes are inside other boxes and secured with glue and cellophane.
The packaging makes it difficult to store and organize these items. I often open plastic packaging for clients. This allows me to better organize their storage spaces.
You are better served to buy the items, one at a time, when you need them. Less storage needed. Less wasted plastic. And yes, less money spent.
Better Prices Elsewhere
It’s important to test the theory that you’re saving money at Costco and factor in the membership fee too. At least one grocery store in my area, Wegmans, sells family packs of ground beef and chicken. It’s the same price every week, without the membership fee. I advised a client of this and she didn’t believe me until she shopped there for herself. Wherever you shop, do your homework.
We also like a generic brand of paper towels that are competitively priced with Costco. Again, without the cost of a membership. With a little price shopping, you can save money outside Costco.
Impulse Buys
On one occasion, I remember we bought gloves for a ski trip. They were terrible. But the product placement and advertising was excellent. They were placed on the end of an aisle in December. The perfect Christmas gift or impulse buy for a traveler like me. It seemed like a good idea to buy the two-pack. But we would have been better off purchasing one high-quality pair of gloves.
Other seasonal items are staged in the middle of Costco. Vests and Christmas decorations during fall. Swimsuits, goggles, and patio furniture in spring. Such items are rarely on your shopping list and yet make their way into your cart. They might even be a good purchase if they represent a need. But it’s usually an impulse because the item caught your eye.
It’s been more than 5 years since I held a Costco Membership and I do not miss it. On occasion, my neighbor will pick up an item for us. And once a year, we host a large gathering and cook for 100 people. So, it makes sense to buy certain items in bulk and I go with my neighbor.
But for everyday life, you can save more money by budgeting, meal planning, and skipping the membership.
What do you think?
Yes or No to a Costco Membership?
Janet Schiesl says
We bought a Costco membership years ago when I had two teen boys (and their friends) at home and I did find the food saving worth it. But it took a little “training” of my husband not to overbuy. On our first trip through Costco he exclaimed “OH, AWE” as we rounded every aisle. I had to keep cautioning him that we had to store items when we got home – where? I am grateful for my tiny pantry, but it certainly won’t hold the bulk buys from Costco.
I’d still say YES to Costco. We use it for tires, contact lenses and some specialty foods that we really like. I’ve also bought Holiday gifts for clients, flowers and prescriptions. Some prices are good, but you are correct, be an aware shopper.
Amy Slenker-Smith says
Thanks Janet! So well said, “Be An Aware Shopper” I think impulse buys and the plastic packaging will keep me saying ‘No’ but I appreciate your reasons for saying Yes. They make sense. Appreciate the comment!
Valerie says
I’ve had my Costco membership for over 10 years and wouldn’t give it up. I’ve learned the art of Smart shopping
Amy Slenker-Smith says
Valerie – that is great to hear that Costco works for your family and you’ve figured out how to avoid the impulse purchases. Nicely done!
LG says
You can get better tires for better prices at on line tire stores. The tire option are small at Costco. The tires available there are good for hwy or street driving in normal weather. But if you need all weather, snow , all terrain, or heavy duty tires get them on line or at a tire store
Tracy Endo says
I’m with you, Amy! I haven’t had a Costco membership in years and I don’t miss it at all! Cheers to living simply!
Colleen N Conrad says
I agree, Amy. Years ago when BJs first opened in our area, our teenaged son went with a friend who had a membership; he raved about it. So I was offered a special pass to check out the store. It was all oversize packages & non grocery items that I would hardly ever purchase. That was my first & last trip to warehouse shopping.
Amy Slenker-Smith says
Hi Colleen – yes, we went to BJs on a special pass too just to buy a glider/ottoman when I was pregnant years ago. It served us well for YEARS! But it was my first and last trip to that store. Even now when I go with my neighbor for a specific item or two, I cannot get over the excess packaging. The waste is terrible. Thanks for your comment and for reading. I really appreciate it!
Maria says
Yes I agree with all points made in article, and I reconsider renewing ours every year. The primary reason I keep it is for gas. Our Costco is close by, we buy gas anyway, and their prices are significantly lower. We also take one or two road trips per year and can usually find a Costco right off the freeway when traveling. We’ve also shopped their optical and hearing aid departments, both of which are well -rated. Otherwise I might go once a year on a whim.
Amy Slenker-Smith says
Hi Maria — Thanks for your note. I do know many people who use the Costco gas services. It might be interesting to compare how much it saves vs the membership fee? But I think if you’re only going once a year, you probably do a good job of sticking to a list too and making it worth your while. I so appreciate your comments too! Thanks again!
Don says
The membership fee of $120 for our Costco Executive Business card is offset many times over by the rebates we receive every year; more than $120 from Costco, and approximately $450 from our Costco Citibank card. I wouldn’t give up my Costco membership for anything. My wife and I are retired, so it’s just the two of us, but we know how to maximize the values there. When we remodeled our home years ago, we created spaces to accommodate some of the bulk items, such as paper goods. I’ve compared prices at local food stores and am shocked at their much higher prices. Our retirement income would be measurably impacted by the loss of our Costco membership. Many of Costco’s products are frequently cited as superior by consumer rating publications.
Amy Slenker-Smith says
Hi Don – thanks for reading and for your comment. I am so glad that Costco is working for you and your wife. I think the key is that you very closely manage your household budget. So many people do not budget and get caught overbuying. Nice work done by you and your wife!