Many people head off blindly to the local warehouse store to buy cases of their favorite products, but are warehouse stores actually saving you money?
It’s Saturday morning. With grocery list in hand, you drag a very unwilling family out to the car where you proceed to take them on a mega shopping spree at Sam’s or Costco.
Marching down each aisle you tell your family members “We need 3 cases of corn, 4 cases of green beans and — Oh! That’s a good deal on peanut butter so let’s get 3 gallons. Of course Susie, your can get a bag of cookies. They are so cheap! …and Billy you can have a few bags of your favorite chips! Yum! Oh look — samples! These taste great. Let’s get some! What a great buy on chicken – we need 20…”
At the dog food aisle the excitement mounts as each member of the family grabs a corner of the 50 lb. bag of dog food to stack on top of the basket. (We won’t mention you only have 1 toy poodle at home.) After waiting in line and waiting in line and waiting in line you push your agonizingly heavy and overloaded baskets out to the car. Getting everything into the trunk of the car makes putting together a 1,000 piece puzzle seem like a breeze but, finally, home you go.
After you lug everything into the house, it’s time to spend the next few hours repackaging things for the freezer. You double wrap your 20 chickens (they could be in that freezer for quite a while) and frantically try to find places for everything else in your cupboards and pantry. By the time you are done, you are so exhausted that you couldn’t begin to lift a finger to cook, so you all go out to eat.
A few weeks later you gingerly sniff the gallon of half used peanut butter as you try to decide if that strange taste is because it has gone rancid or simply because you are sick of peanut butter. You threw out that partially used gallon of maple syrup yesterday because it had sugared and was looking really strange. You still have ten of your chickens left but if you bathe them in some spicy sauce you are pretty sure your family won’t notice the freezer burned taste. In spite of having to throw out most of the 50 lbs. of dog food (after a growing family of mice had invaded it), you’re sure you saved money because “they” said you would.
People constantly ask me, “Can you really save more money at warehouse stores?” I usually answer, “Not any more so than at other stores.” I have checked prices at various stores on many different occasions and factoring everything in, I haven’t found any exceptional savings at warehouse stores.
Here are some tips to help you decide if a warehouse store is for you:
- Do your homework and compare prices. Buying in bulk is not always cheaper. You really save by checking and comparing prices. I was at Costco one day where there was a display of two one gallon bottles of Clorox for $1.98 AFTER a rebate. I stood there amazed as people frantically grabbed this “great deal.” I knew I could get that same Clorox for $.98 a gallon at my regular discount store and I didn’t have to mess with a rebate, pay postage or lug 2 gallons of Clorox shrink wrapped together to my car.
- Don’t buy impulsively just because it sounds like a good deal. Say you can get 12 bottles of sunscreen for a great price. Think it through before you buy. If your family only uses one bottle sunscreen a year, that means you will be storing sunscreen for 12 years, not to mention that most of the sunscreen will expire long before then.
- In most homes, one quarter of food people buy gets thrown away. Even though my story was somewhat tongue-in-cheek, there is a certain amount of truth to it. If your family of four eats pancakes once a week, that gallon of syrup is going to last you a VERY long time. You might also consider that unless dry goods and freezer items are very carefully stored, they will go bad or get bugs in them. Remember to buy the size appropriate for your family.
- You need to be very well organized to buy in bulk. All the shows and magazine articles about organizing suggest that most of us are organizationally challenged. Finding places to store everything and then carefully keeping track of what you have is critical if you want to use it all before it spoils.
- Most people usually spend more than they originally planned on things they don’t need. This never saves money. We taste samples and so often end up buying. If this is you be careful. Maybe sampling is a bad idea (unless you’re making lunch of it)!
If you have ten kids, run a day care or are buying for an organization then you almost have to buy in bulk. If you have a small or average sized family, you will probably save as much shopping for sales at your regular grocery store or discount store. The key is to do the math and evaluate your practical needs. You have to decide for yourself if buying at warehouse stores actually saves you money or just creates more work.
-Jill
For more easy and practical ways to save money and get out of debt, check out Dig out Of Debt and learn more about how to keep more of your money!
I wish I found this website years ago. I am very frugal and try my best to get the best savings for my family. I have so many “tricks of the trade” for my shopping and keep many a secret at I don’t want to many people to know.
I have noticed something and called it attention to a store manager when it came to dollar days. Where a certain amount of items are marked at $1. Buyer beware: many items are originally less than a dollar. This particular time the original price was carelessly left for us consumers to see what is being done. I called a manager over and asked if I could get the item for the original price vs. the sale price. She was baffled and once she realized what I was saying she was quite embarrassed.
Don’t get me wrong there are some great dollar days deals. But don’t get to excited about a sale….do your research.
Louise
I second Louise, I am always amazed at what people are willing to pay for and how no one seems to research what they are buying
case in point
when my dog gets itchy we give her Diphenhydramine generic Benadryl 5.25 for 40 or 2.99 for 100 at Walmart
but the real point is all the expensive ‘Sleep Aids’
every SINGLE one – the active ingrediant is Diphenhydramine (benadryl)
this includes big name meds for pain like Ibuprofen and Acetomeniphen night time
Also, I don’t know how many people are aware of the Half Life of OTC / or RX Drugs, Diphenhydramine can cause some serious grumpiness the next morning for many people.
Many people call me cynical, but I was raised to question everything. Hasn’t always worked out well but in the last 10 years it has really worked great.
Dad always said back in the late 60’s and early 70’s
“Believe 1/4 of what the newspaper says because every one including newspapers have a desire, it may be to keep stories interesting to get more readers or the actual owners may have certain beliefs”
“Believe half of what people tell you, most people just repeat things they have heard, the majority of people don’t take time to research what they are spreading be it gossip, varied statistics or something helpful”
“Believe nothing you hear on TV. This was back in the days of Vietnam, Watergate and hippies”
He left before the internet, but I can imagine what he would say.
One other thing …….
question and research, people would be horrified at $$ wasted and amazed at the savings
This is true Jen. Tawra is really good about questioning things especially when it comes to meds and beauty products. I was having real problems with my nails once and saw this stuff which everyone was carrying on about how great it was. It was about $30.Tawra read the ingredients and it was nothing but perfumed vegetable oil.
This is why most of our stuff we try to research and research and then try out ourselves. Then we ask ourselves does this really make sense or is it just people trying to get us to do something or buy something.
I totally agree i realised years ago that generic brands especially medications are exactly the same except for the price iknow almost all the prices and best places to shop eg aldi as its saved me a small fortune. Ive been hooked on living on a dime for few years theyre an amazing family i feel i know them all. Ive learned so much from this channel and the cookbook i cant recommmend it highly enough
Thank you so much Diane. Appreciate you taking the time to write a comment for us and I agree yeahhhh aldi.
I love your site…the tips are great.
My daughter and I shop and run errands together every Saturday. We use Sams about once every three months. Most of what we buy are paper products and we split the packages between us. Saves us both. Dog food is a great buy if you have a large dog or like me three small dogs. I keep my 40 pound bag of dog food in my chest freezer. It doesn’t take up that much room. It actually makes me more organized in the freezer. When my grandson was a baby, my daughter bought her formula there, but baby food was not a bargain. You have to compare the prices. The new Iphones are great for that purpose.
My shopping list is organized by stores. I have boxes for Costco, WalMart, Kmart, Sail Drug, WinCo, JoAnn Fabrics, etc.. Most of my shopping items I buy in the place with the best price. Milk I buy at one store, cheese according which cheese and the sales, butter at Costco, meat according to the brand I trust most, toiletries at Grocery Outlet. I don’t blindly buy things because I am in a “bargain” store. I have a reason for each store I shop at and sometimes I find things at “stock up” prices. So, I stock up!
Costco usually has the best gas prices in our area. GasBuddy.com is a good place to find the best gas prices in your area.
I only shop Costco when I am in the area, or I lose my savings by the 30 mile drive. I do enjoy their snacks too.
You just have to know where the best prices are for the items you want to buy and don’t lose those savings by driving here and there.
I have a Costco membership. I usually buy things I actually use on a regular basis – paper towels, dish washing liquid and powder, fragerance free clothes soap, paper towels. I regularly avoid the food aisle, because I’m not a food snob, and the prices don’t seem to be that much of a savings. If I was a food snob, yes, the brand names are less expensive at Costco.
All that being said, the most savings I receive at Costco are on my perscriptions and the services they sell. We have our car insurance through Costco, because they are the least expensive with the best service. I have priced out glasses there, and regularly order my bank checks from Costco. Don’t overlook the other services warehouses offer, but remember to do your homeowrk!
We shop at Sam’s, but only for a few things that are cheaper there. I’ve discovered that stocking up on great supermarket sales will make them cheaper than Sam’s regular prices. We used to get a 10 box bundle of Kleenex at Sam’s but I noticed that Kroger affiliates have sales, aproximately quarterly, on Kleenex. It is 99 cents a box if you buy ten (of any participating sale item) and they double coupons. I had four (55 cents off of three boxes) coupons, and bought 12 boxes of Kleexex, and bought eight other participating items because things must be purchased in incriments of ten. The total for 12 boxes at 99 cents each was $11.88, less the $4.00 doubled coupons, or $7.88. That made each box 65.6 cents each. (regular price $1.99 each) The 10 box bundles at Sam’s club comes out to $1.29 per box.
The other eight items I bought, to complete the sale requirements were each 49 cents. The regular price on these items was $1.99 each. The savings by shopping at the grocery store, during these sales is much more than any savings I can realize at a membership warehouse. It really “pays” to stock up during these sales.
I totally agree with spending time at a warehouse places.
My family no longer shops at those places. When my family was younger. We would spend way too much cash at those big places. Yes they offer deals and some items were worth the cost.But I since had done my math and avoiding a huge warehouse store just burns your wallet. The longer you stay in those huge places the more you spend. We now shop at Aldis and other discount stores. And sometimes the major chain stores when they offer a great sale. For my family . We keep a decent budget ,use cash ,no plastic.I make my cleaning products . I do a menu plan for the week and I shop with a list I do not buy items that are not on my grocery list. It saves time and money . And the cash we save. We use for a vacation account at our bank.We also got into the practise of using only cash for all our purchases . I also use a clicker counter when I do our grocery shopping.
And when I hit my total amount .I spend only what we intend to and keep the plastic at home and keep ourselves out of the poor house.
I usually use my time at the laundry mat with their long tables to sort coupons. When I know I need tissues or something like peanut butter, I check for sales at the three grocery stores and the warehouse store. Then if I have a coupon, I figure out the true price. I went to BJ’s the other day with a need for Kleenex- a store coupon and the cents off coupons- well it was nice to have $20 off a 50$ order!
The lady behind me asked how I did it. I told her I use a list. She said I cannot do that I always think of one more thing- You know YOU can when you tell yourself- this is my money limit and you will be frugal or don’t get it!
If I find a sale, there are two things I ask myself-
1- is there room for it? Like in the freezer?
2- is it a want or a need?
Oh, being sick does slow down your spending days out… but a lot of garlic, ginger, onion powder and honey and lemon help too! And chicken soup and hot Tang! Be well soon.
I just wanted to update. We shop maybe once a month if that at BJ’s and this time I subtotaled $150 before the register and had just over $40 off after! The extra $40 will go to dehydrated food that we want.
The suggestion of putting dog food in the freezer- Awesome!! It fills the space and keeps the mice out! I will pass that one on! That works with all your grains too. A friend also buys apple cider- pours off about 2 cups then freezes the rest. She has enough until the new crop is pressed.
I have shopped at Costco for years & have always known that many items can be bought for the same or less at discount stores or when on sale at a good grocery store. But certain items make membership worthwhile for me. I buy cheese, raisins, pecans, & walnuts, in the baking section for snacking, baking, & to put in breakfast fruit mixes. Also the original Trident sugar free gum which is sweetened with xylitol (good for teeth & gums), tuna as it is a 7 oz. can & a better quality than the same brand at the dollar stores. Yuban coffee is often a better price & I also look at spices, shampoo, conditioner, vitamins, & generic pain meds.
Membership is worth it, if you know prices, what you need, & stick to those items.
I could not disagree with you more! We are a family of six and Costco is a time and money saver! Of course, you need to pay attention to what you are buying, but Costco has an enormous number of organic products (which we try to purchase) and there is no way you can buy these individual organic products for the same price. The dairy alone is worth the savings. And I can assure you, we do NOT throw food away in our house. I do not buy the prepackages items, but shop for the basics, such as bag of organic rice, bag of organic sugar, organic cold pressed coconut oil, organic olive oil, organic butter, organic milk, we don’t buy the organic eggs, because we have chickens, huge box of organic green tea that even on sale at Kroger can’t touch the price, huge bag of organic tortilla chips, large block of Tillamook cheese (no antibiotics or hormones) that will last forever, organic frozen berries that would cost a fortune from Kroger, organic frozen broccoli, almonds, pecans, organic lettuce and I could go on and on. We have a dog and cat, no not a toy poodle, and they eat a lot. We pour the bag into their plastic holders and throw the bag away. No problem with storage. Every family is different. We actually cook so buying the basics at Costco definitely saves money, that’s why you see the Amish and Mennonites there, buying their sacks of flour, sugar, etc. Now, if you are buying prepackaged junk, then no, you’re probably not saving much money.
As we always say just make sure it works for your family. Yes those places do work and actually save for some but for a lot of people it really isn’t a savings.
I don’t shop at the warehouses. I don’t see the point of wasting the money on the membership if I can get better deals with coupons in other places. I go by the cost/ounce instead of by the store name. When I find a good deal, I stock up and don’t have to shop for that thing for 6 month or so.
While shopping with my mother, I have also pointed out that Sam’s isn’t any cheaper (even comparing to Wal-Mart, since they are the same company). Diapers, wipes, babyfood (all the non-perishable items I need, not only were not a savings, but actually even more expensive). I don’t have time to be a big couponer, but even using a few here and there is worth saving a trip to one of these big warehouses in gas money. Maybe when they first started they were a great savings and now people just assume if you buy in bulk that your’e getting a great deal (check your unit prices people). It is a marketing gimic. I do go with mom to get the free samples though (but save yourself the wasted membership fee).
I have only just started shopping about twice a year at Costco. There is one in two different cities that my grown children live in. I seldom buy brand name products, as I can usually get as good or better prices and deals on store brand products at home. I do however get items in bulk that are not readily available in my hometown. Last trip, I bought two large bags (40 lbs.) each of whole wheat flour, two 20lb sacks of sugar, 2 5il. bags of brown rice, 2 large bags of quinoia, etc. While sugar is available, the prices per sack were much cheaper at Costco. Most things I buy are dry goods, and yes, I do use them up before my next trip. One of the Costco stores also makes and sells prescription glasses. TWO pair, which were then mailed to my home address, cost me just under $400.00 two years ago…a real steal, as a similar single pair of glasses start at about $500.00 EACH elsewhere.
We lived without Sam’s Club for 6 months and really missed it. Not to mention the hassle of asking one of our parents if we could go with them and coordinating scheduled, etc. (Retired people are SUPER busy!!)
It was when our TV was dying that we decided to go back, having compared all of the prices all over town. Paid a lot less for a nicer TV than we thought we could get, which paid for the $45 membership and then some.
I have a core list of items that I like to buy at Sam’s, and I’ll bore you with it:
* vinegar (for my front-loader washer)
* many spices (taco seasoning is much cheaper in huge bins & I do use it all)
* bags of already-cooked bacon pieces (cheaper less fat than frying it myself)
* paper towels (I can’t seem to get below $1 a roll in stores, even with coupons)
* frozen foods
* men’s jeans (my husband is relentless in ruining jeans at work)
* OTC generic medications
* marked-down fresh meat
* store brand toilet paper (yes it’s interesting storing a box of 40 rolls)
I have not found detergent items to be a good buy there, considering the coupons available for them. We also prefer to shop at our locally-owned grocery store for the bulk of our food items, but there are some things at Sam’s that are just too good of deals to pass up.
We haven’t had a membership at Sam’s in about 3 years, since my husband had been laid off. However, family members DO have memberships to Costco and Sam’s, so we just ask them to buy for us the few items we need and we reimburse them. We save $100 per year in memberships that way. My sister has a Costco membership and my mom has a Sam’s membership. They also ask each other to purchase items for one another. You also need to see if your savings over the course of a year makes it worth what you would normally buy, such as milk. We usually shop at Aldi’s, but Sam’s still has milk .75-$1 cheaper a gallon. We use at least 2-3 gallons a week (I have a daycare.), so even if we did purchase a Sam’s membership, I’d still be saving about $50 per year on milk after the membership price is taken out.
As a business your membership would/should be tax deductable because you need to feed the children. I’d check with your tax accountant. We have a business and it is tax deductable for us.
I agree with you on bulk groceries; you’re usually better off to watch for sales and buy in small quantities at your local store. However you can save a lot on household items (paper towel, toilet paper, shampoo, feminine hygiene, etc.), prescriptions, and large purchases like computers, cameras, etc. One year I joined Sam’s just to buy a laptop at a great price and saved about 4 times the membership fee on it.
My mom, sister, and I split the cost of a Sam’s club membership making it about $13 for each of us. I have the card since I go to the “city” more than they do…we live in a very small town about 60 miles from the nearest city big enough to have a Sam’s. Most of the time we buy a huge boxes of toilet paper, paper towels, and sleeve of paper plates and then split them. I bake a lot of special occasion cakes and buy my baking supplies (flour, sugar, cocoa, vanilla, etc.) We also buy bulk chili, taco, poultry, accent, and other seasonings and split them. I frequently buy a case of oranges or whatever fruit and we’ll split it. The savings in their health and beauty section is also usually very substantial. This system has worked well for us and our families. You sure have to be careful though and make sure you do your homework before you go so it is truly a good deal. OH and something else they offer…travel service. We used their travel service to book our family vacation. I had searched online at several sites before I went through them. They are saving me about $500 on a week long beach vacation this year!
For those who do use costco once in a while or go with family members. If you have them pick you up a Costco Cash Card, then you can go shop without a membership. Just make sure you let the person at the check out know you need a manager override. I believe that it is a ‘code 99’
I agree with you on buying in bulk; however, we just saved over $700 on a mattress and box spring set at BJ’s. My daughter saved a pretty penny on pots and pans from there, as well. So, there are plenty of good reasons to shop there.
You are right just like any other store you can get some good deals. What happens sometimes is people get so caught up in warehouse buying that they think every thing there is a great deal and don’t really check prices and things at other places where they can find some even better deals sometimes. We are just trying to give people a heads up to look around.
We used to have 5 kids at home and lived close to Costco. Now we only have 2 adult children at home temporarily and live 15 miles away. But we still save enough on cheese and baking items and vitamins to pay for our membership. Buying my eyeglasses there last year saved me money too.
But the article is a good reminder that we need to re evaluate why we are doing what we are doing when it comes to saving money on a regular basis. Is it saving us money now?
Thank-you for this! I’m forever telling people this. I occasionally go to Costco with my mom (about once a year) to stock up on products that I can’t buy anywhere else OR that actually are outrageously cheaper there than anywhere else. I spend about $200 CDN in that trip. (Why *is* the cheese so much less expensive there???) I pay attention to the unit price, and very rarely is it less than what I can buy back home where I live and do 90% of my shopping.
This last time, my mother bless her heart, was soooo excited that they finally had bananas at Costco. I nearly laughed when I saw them them… packed in 3lb bags (more than my family of 6 could ever eat before getting “too spotty”, and we can only do so much baking), exactly like you could get at Giant Tiger (a Canadian discount chain) for YEARS. And they were the same price as GT to boot. I declined putting bananas in my cart.
One thing too that no one talks about at Costco is their produce buying policies. I have it on good authority that they are VERY picky about their produce, to the extreme and frequently turn away entire truckloads of produce because it’s not exactly to specs. They *do* really nice produce, but in a day and age where we’re becoming more aware of food waste I wonder what happens to the (likely) perfectly good produce that’s turned away. Does it get resold? Does it go to the landfill? Does a new truckful of raspberries need to hit the road to replace what’s turned away? What does that ultimately mean to the bottom line in terms of cost that passed onto the consumer?
Food for thought.
Tires. Mattresses. We only buy the membership to Sam’s when we need a big ticket item, and we do check local and online prices first. One thing to remember about Sam’s is that you can get a refund on your membership if it’s not working out for you. And having worked at the customer service desk, I can tell you that you can return just about ANYTHING. If you’re unhappy, get your money back!!!! (Best to have a receipt…but they can look up your purchase.)
I could have sworn I heard on the news this morning (that I was only half-listening to while doing other chores) that Costco membership is increasing.
I used to have a Costco card. Years ago Costco built a new store down the street from our company. A rep came in to sign up people. $50 annual membership fee and at sign up we received a $25 Costco gift card, so that wasn’t so bad.
The problem I found was that I’d go in to buy 4 or 5 grocery items, and probably end up buying double that number, and $100 later at the cash register….
Though there were definitely good buys on things like tires and we bought a GPS there once.
Yes Cheryl that is one of the reason we recommend that warehouses aren’t such great places to go because one of the main problems is even though they have good deals people usually buy way more that they 3-4 items they go to pick up even more so than they would at a normal store. You can get those same good deals at other places if you watch and keep your eyes open and there won’t be as much temptation to over spend.
I found that my costco is cheaper on oils per ounce than amazon.
I do have a sams card. Although I don’t shop there a lot. When I do go, I only get paper towels, toilet paper, female products, some meds, sometimes laundry detergent and dishwasher soap. I don’t buy anything else. It’s not practical to get anything else.
This is not true for my family. True, not everything at Sam’s is cheaper, knowing prices and being a smart shopper are vital. The meats are much cheaper. I freeze what I won’t use, but I am not stupid enough to buy 20 chickens st once. Sam’s Club will still exist in two weeks, so I buy what I need. Many of their items are sold in regular size containers – Like what you get st Walmart- only you get 3 or 4 cellophane wrapped together for the same price. The fruit and veggies? My kids chow down. Trust me, ALWAYS gone before they go bad. Need snacks for a whole class? They sell mega boxes of snacks you can take to school DVD not break the bank. Got a kid in diapers? You will hundreds on wipes, diapers, and formula. Cakes are huge and inexpensive. Don’t worry about the leftovers, most people are thrilled to take extra cake home after a party. Sure some boxes are big. You simply take them out of the bulky boxes to store. A 3- pack of hand sanitizer goes faster than you think in flu season. Things like shampoo and body wash are much larger bottles, but they don’t go bad. That huge thing of peanut butter won’t go bad if you fill a smaller container for the kiddos to use and store the rest in the fridge. If you store food properly, you will save hundreds every year.
For some people the warehouse things may work but part of the problem is like you said the food needs to be stored properly which takes time, energy and space. May people don’t have space to store the mega amounts of food and if it takes you 1-2 hrs to deal with all of that food separating it and dividing it- they could work an extra hour or 2 at an easier desk job or something else that would bring more money in than the savings they got at the mega store. I am just saying really cover all your bases and think it through. Even though like you said it is nice that people are willing to take the extra food home after a party I personally can’t afford to spend extra money on food for other people to take home and use as much as I wish I could.
What many people don’t know is that (in most States) membership is NOT needed to use the Optometrist, fill prescriptions at the Pharmacy, or purchase tobacco and/or alcohol products. Check with the Customer Service Desk at your local Costco/Sam’s/BJ’s for specifics, but it is a way to partake of some of these *lower prices without the added cost of Membership fees.
*Costco may offer slightly lower cash Rx prices to Members, but I’ve found that their overall costs of medications can be FAR less than the retail cost at other local/national grocery store and chain pharmacies.
That’s correct – I work for an optometrist inside a Costco and patients do not need to be members to get an eye exam. Now, to buy glasses from Costco optical they do, but not to see the optometrists (who are all independent from Costco, anyway). And, our prices for eye exams are lower than even Walmart Optical! :-)
Thank you for the tips. You are a voice of sanity.
I don’t shop much at Costco now that its just me. But I do like there healthier options, and paper products. But I get the card for the savings on gas, and its safe some of the cheap gas stations are scary.
I agree with you, I don’t have a membership at any of these stores, as I end up spending too much. Regarding the example of maple syrup getting sugar on top of it: if you heat the syrup, you can then skim any solids from the top, and still use the syrup. Maple syrup can also be frozen; it just thickens. Maple sugar (dry) has a shelf life of at least 3 years and can be mixed with water to make syrup as needed.
I have said this same thing for years! I can do better with sales and coupons at my regular stores. However, I have, on occasion, purchased a club membership. Twice when they offered a gift card worth the same price as a membership and once when a club opened near by and the memberships were an introductory price. We thought we were going to use it for discount vacations but never did. We didn’t renew it. We are very very careful about what we buy. Meat is usually cheaper and so is alcohol, so we do buy those. There is a cheese we like and the cases of water are a good price. But if we hadn’t received that gift card, we wouldn’t have bothered with a membership at all.