Is Costco Worth It for One Person?
While most people would instantly assume the answer is “no” for this question, the reality is it depends on a couple of key factors. If you drive a lot and there is a Costco gas station near your house (or along your commute), then the answer is usually, “Yes, a Costco membership is worth it for one person.” You can see if the amount you’ll save on gas will pay for the membership fee with the Costco Gas Calculator.
If you don’t normally purchase gas at Costco, it gets a lot more difficult to justify the $55 membership fee each year. There are exceptions, such as if you run a small business and buy products from Costco to resell, but for the average single person it probably doesn’t make much sense. For those who find that the membership price doesn’t pay for what they buy each year, it’s possible to shop at Costco without a membership which is a valid option for those who only need to buy something at the warehouse a few times a year.
Is Costco Worth It for a Couple?
This is another question with an answer that’s dependant on how the couple shops. For many couples it’s about a break even scenario. If there is a Costco which is close by and convenient to visit, then a Costco membership is likely worth it. If the nearest Costco is miles away and you have to make a special effort to go there, then it’s much less likely that a membership is worth it. Again, your shopping habits will also play a big role in determining whether or not the membership is worth the price. Those couples who have a large house and do a lot of entertaining, including big gatherings at the holidays, are more likely to find the membership worthwhile than couples who live in a smaller apartment and rarely have big gatherings. If you aren’t sure if a Costco membership is worthwhile for you as a couple, the chances are that it probably isn’t (or a break even scenario at best).
Is Costco Worth It for a Family?
While there may be some exceptions, in general, a Costco membership will end up paying for itself if you have a family. The larger the family, the more likely a Costco membership is worth it. Again, distance from the house and convenience in getting there will play a role in determining if it’s actually worthwhile, but because families are able to take advantage of the bulk items Costco sells to a greater degree than one person or a couple, it’s easier for the membership fee to pay for itself for families.
Is Costco Worth It for Groceries?
This is another question that comes up a lot, and it greatly depends on how you grocery shop rather than how big your family is. If you use coupons and shop specifically for items only when they go on sale, then you’ll get a better value from your local grocery store than you will from Costco. If, on the other hand, you don’t shop sales or look for discounts and basically buy what you need when you need it, then you’ll likely get better prices at Costco. The warehouse has good prices on most food items, but it doesn’t have the best prices. Those who take the time to shop grocery store sales can save more money shopping at their local store, but those who buy at normal retail price will do better at Costco most of the time.
One big exception is the Costco bakery department. The Costco bakery items made at their stores are usually a much better value than what you could get at a grocery store bakery. The classic example are the Costco pies. They are twice as big as the ones found in the grocery store and are usually priced less.
If you have never shopped at one of their warehouses, it’s definitely worth the time to check it out. Since they don’t have one-day guest passes, you can do so with a friend who already has a membership or by getting a Costco cash card. Seeing what the stores have to offer will give you a much better idea whether or not Costco would be worth it for you.
(Photo courtesy of David McKelvey)
I used to have a membership, but I found it wasn’t worth it after awhile. It’s convenient, but the prices aren’t the best. If you put in a little effort, you can get most things less expensively elsewhere, especially online. Still, I do miss their roasted chickens.
I’m willing to say what everyone already knows: Costco is overrated for saving money. It’s prices are OK, but not great. They treat their employees well, but that means they have to charge more. It’s fine if you want to support them, but don’t claim they have great prices at the same time.
in complete agreement.
I have found that they do have great prices on certain things. The do on alcohol and their whole chickens. Also prescription drugs. I think their return policy should also be considered. If you have an issue with something you buy there, you can return it without hassle which isn’t the case in many stores.
Their operational cost and product margin are much lower than other grocery chains, which allows them to treat their employees well. I do agree that not everything at Costco have the lowest price, but at the end, the quality you get from them makes the membership fee worth more than the cost.
“the quality you get” – I’m glad Kyle gets it.
So many people who comment on this site just don’t get it. If you buy a good product for a little more, it’s often worth more to you than if you buy a crap product for a cheaper price.
All you see on this site are people crying about not having the best price.
I’m single and Costco membership pays for itself easily each year. This year I needed a new set of tires for my car and just buying those paid for the cost of my membership because they were $80 less than anywhere else in tow for similar tires. Every year there is something like that.
Gas, the most important factor in everything. We have a premium membership and Costco Amex, with no Costco gas station in the vicinity. I am struggling to convince myself costco membership worthiness. With the lack of organic food stuff, and being a vegetarian for medical reasons, its hard to make full benefit of the membership.
I tried insurance through Costco, was way more than what I could get without Costco.
I tried car rental, although little cheaper, unless you rent car 2 to 3 times a month, not worth it.
I tried car shopping, utter useless. Actually expensive, with dealership attitudes.
And now that there is a rumor that they plan to switch AMEX to CapitalOne Visa, that will be a dealbreaker.
I’m a Costco loyalist.
Their prices on items like produce and dairy crush the competition around here, not to mention my local Costco has the lowest price on gas in the entire state (at least they did last week).
The biggest reason I like Costco though, are the add on products. For example, when I bought my Dyson, it came with a slew of handy tools, that you have to pay extra for from somewhere else. Little things go a long way when you are competing for my dollars. Treating your employees well does a lot for me as well.
I also have the Costco Amex, and am really happy with it. The card’s fee is just your Costco membership for the year… but if it is changed to a CapOne card, I’m out.
I’ve never understood the fascination of Costco for so many people. I guess if you buy a lot of stuff then it’s worthwhile, but having good finances is about learning not to buy stuff just because it’s a good deal. I know that isn’t the “American Way” but it should be. Costco and stores like it promote over consumption. Not getting a membership saves me a lot more than the $55. It saves me the huge amount of money I’d spend on things I never would have purchased except for having a Costco membership. It’s a consumer trap that far too many people fall for.
I stop shopping Costco for fruits and vegetables because they come with too many. I’d end up throwing a good portion of them out because they’d go bad. I’m better off shopping at local farmers markets getting fresh food in the amount I can actually use.
All I want to do is try Costco with a free pass, but they don’t offer it. That seems insane to me. How can I find out if Costco is worth it if I can’t even try it out to see?