Warehouse Stores – Are You Really Saving Money?

by Tia on April 21, 2009 · 2 comments

Warehouse stores are popular because they save time, money and energy. You can pick up almost anything your household uses (x10) there if you have the storage space and at many of them you can even fill up your gas tank for a discount. You also get the most bang for your buck there right?

Many people, myself included presumed that warehouse stores inevitably had the best price on everything. The prices are low enough to be a deal, especially for the large quantity you get, but what I found when I looked closer was that often their prices can be beat if you pay attention to the store sales and trends.

Is a membership worth it? I can not tell you that…I don’t know your family situation or shopping needs. So…

This comes back to the price book and knowing the unit price of items on your Top 50 list. Examples – I assumed warehouse stores had the best price on laundry detergent. What I discovered was that I could save .09 a load if I bought the detergent on sale with coupons. I do about 14 loads of laundry a week so that is a savings of $65 a year! Since I stock up at these sales to carry me through to the next sale, it makes more sense to go with the grocer/drugstore or mass merchant in this case. I also cook with feta cheese a lot and I have never found a better deal per ounce on feat cheese than at the warehouse stores. It is all a matter of awareness and knowing the best prices for what you actually use.

You also need to take into account the membership fees at these stores. These rang from $25-50 a year and if you don’t shop there often, or you don’t purchase many big ticket items that justify this expense, this may be money down the drain. For our family, the money saved monthly on gas covers the membership fee, my husband alone fills the tank 3 times a week for his commute – if not for that we would not be able to justify the membership because I do less then 15% of my shopping there. While I don’t love my husband’s commute, I am thankful to have the justification because I really do enjoy having the membership.

If your savings don’t beat the membership fee you may consider one of these options:

  • Sharing a membership with a family member or friend.
  • Splitting large packages with someone to take advantage of the savings without needing a place to store 200 rolls of Charmin.
  • Looking for discount membership opportunities – Sam’s offered a gift card deal earilier in the year, Costco offers enrollment price deals thru some business outreach programs and BJ’s has a free 60 day membership trial available now.

There are great deals to be had at your local warehouse store, but paying attention, knowing your best deals, and shopping smart will help you get the most out of your warehouse membership and your family’s budget.

What is your experience? Does Warehouse shopping save you money?

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{ 2 comments… read them below or add one }

deliarose April 22, 2009 at 9:42 pm

We have a membership to Costco. Though I do agree that some items are pricier, there are a number that are not.
We buy the Earthbound organic baby lettuce mix 1# it usually runs $4.89. This is much cheaper than in the grocery store.
Milk is cheaper- $2.and some change depending on the milkfat content.
TP- is cheaper and a Consumer Reports best buy.
They carry the only creamer my DH will use and it is always cheaper there, even with coupons and sales at other grocery stores.
I buy the huge container of vinegar for my laundry, the diced tomatoes in the #10 can, organic frozen mixed veggies @$5.89, and lots of their Kirkland brand items as a savings. Their coffee is really good and depending on where you live and how big the store is, they roast it in the store. I know that the Anchorage, AK store did this.

The thing that sells the most on the membership is the customer service. If you have food that goes bad before the sell by date, they will refund or replace it, no questions asked. We even downgraded our membership and were credited the full amount back! I think it is worth the cost for sure!

Tia April 23, 2009 at 9:00 am

Delia Rose- It sounds like Costco is definitely a great deal for your family! I know a lot of other people really enjoy their customer service too. I enjoy the gift section they have during the holidays – the selection is so interesting and the prices are usually pretty great! I also love that they have stepped up sending out coupons!!!

Here is why I re-assessed my shopping and cut back on what I purchase there:

I used to buy the Earthbound organic baby lettuce mix 1# also because it is a GREAT price that can not be beat at a store, but I found half of it was spoiling before I could use it all because we are not huge salad eaters. It was cheaper to get a variety of different organic lettuce heads at a locally owned store down the street from our house for .59 a head and make my own mix. 3 different kinds cost me 1.77 and there was no more waste!

Milk is always 1.99 a gallon here at our grocery stores.

I usually do not pay anything for toilet paper and when I do not more then .10 a roll so it is cheaper for me to stock up at the drug store when the deals are good.

The prices on string cheese, block cheese, feta cheese, canned chicken and peanuts can not be beat! I pick those up monthly and love that I only have to hit the store once a month to keep stocked up!

Thank you for sharing with us why Costco works so well for your family! I know it will be helpful to others who maybe have not been into a Costco before or were thinking of joining! I think location has a lot to do with why I am able to get a better deal elsewhere. I am lucky to live close to many different types of stores and I don’t mind hitting a few to keep my costs down, but I know many other people do not live within range of more then a couple stores and making shopping trips are a big deal. When time and gas are added – Costco is the best tip for them! :-)

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