When making the choice of which membership warehouse will get your business, does Costco or Sam’s Club win out? Is one better than the other, and if so, which factors play into that decision? Costco and Sam’s Club are similar in many ways. Their appearance on the interior is nearly identical. Both offer discounted merchandise based upon the fact that you are buying in bulk. Both charge a membership fee for the privilege of shopping in their stores. However, in spite of all of their similarities, there are differences as well. Discovering these differences and using them to your advantage will be key in deciding which warehouse giant will get your membership.
Location
Costco stores tend to be located closer to wealthy suburbs and higher-income areas. The vast majority of people shopping at Costco tend to be more interested in higher quality merchandise. Alternately, Sam’s Clubs tend to be located in regions where folks are more budget-challenged and are looking for a better deal on the quantities of items.
Cost Factors
Sam’s Club’s membership fees are cheaper than Costco’s by $10. This may be a huge factor to take into consideration for those who are reluctant to shell out the initial membership fee. Sam’s Club also offers more in-store benefits to their membership, whereas Costco’s benefits are more out-of-store benefits, such as auto insurance and travel discounts. Sam’s Club also offers a cash back option to its highest membership levels, and Costco does too.
As far as prices go, Sam’s Club appears to have overall lower prices. They offer Membership Mark and Dairy Chef foods as their in-house brands. Costco offers Kirkland. However, it seems that even though Sam’s Club’s overall prices are slightly lower, the packaging sizes are often smaller than at Costco. This would technically make Costco’s unit prices cheaper.
Sam’s Club offers its customers more payment methods than Costco, so this could be a slight advantage. Costco often has long waiting lines, whereas Sam’s Club now offers a “Click and Pull” option. With “Click and Pull”, you can place your order online and pick it up at the store the next day. This is a convenience that Costco doesn’t offer.
Return Policies
Costco has its renowned return policy, where they seem to allow you to return virtually anything without a receipt. Sam’s Club has a more traditional return policy, requiring a receipt for a full refund. Costco doesn’t offer delivery or installation services for any in-store purchases. The customer must transport and install items themselves. On the other hand, Sam’s Club delivers and installs furniture and electronics. They also offer 24/7 technical support on electronics purchases.
Costco vs. Sam’s Club: Which is Better for You?
As you can see, the similarities between Costco and Sam’s Club are many. It is important to research each store to see which perks will benefit you the most. Depending on what you hope to achieve with your membership, one may be a clear winner over the other in your opinion. In my opinion, however, this race is too close to call.
(Photo Courtesy of Ken Teegardin)
I think they’re both rip offs. People are delusional if they think buying in bulk will save them money. It’s actually a huge WASTE of money since most of the stuff you buy goes bad before it even gets used. You’d have to have like 12 kids before buying at in bulk from a warehouse actually made sense.
This is true for items that spoil, in the majority of cases it doesn’t make sense to get a package of several dozen eggs or the like.
On the other hand, toilet paper, paper towels, garbage bags, over the counter medications that you take every day… Those can make a membership worth it surprisingly quickly.
And while the electronics selections are limited, a 90 day return policy when everyone else offers a 15 day policy can be exceedingly attractive as well.
As a single man that uses both clubs, I’m afraid I have to disagree. If you have a pet, drink alcohol, eat meat or cheese, or like high end prepared food you can save a ton of money shopping at the clubs. Many of these items are 30-40% cheaper than a store and are perfectly manageable by singles or small families. I rarely have something go bad without using it, and even on the rare occasions that happens I still saved money.
Further, it pays to go ‘all in’. I buy the costco executive membership with their credit card, and it pays me 3% of what I shop there back as an annual reward. If I buy $3500 worth of stuff in a year the reward pays for the $110 membership. I usually get $200-300, so they’re paying me to shop there.
I also make use of the executive services. I get my home and auto insurance through Costco/Ameriprise. It saves me $500+ a year and they have excellent service.
Hell, I could make back a basic membership fee on $1.50 hot dogs, $4.99 roast chickens and $9 giant pizzas.
I have a membership to Sam’s for two reasons. First its empty almost all the time because the Costco products are of better quality, so if all I need is 5 items I can get in and out of Sam’s faster than finding a parking spot at Costco. Second, they have membership groupons for $45 that include a $20 gift card and $20 in free food coupons, so it ends up being nearly free. My ex-wife and I swap who gets the ‘new’ membership every other year.
So in total, I’m saving $500+/year right out of the gate, getting paid $100-200 to shop at Costco, I eat lots of expensive food for middle class prices, and I get a nearly free Sam’s club membership for when Costco is busy.
I agree. My husband & I buy enough using the Sam’s & Costco’s credit cards to pay for our memberships. Plus I do a lot of cooking for our church Lifegroup so I save money. The things we use every week, like almond milk, yogurt, and eggs are a money saver for us. Most of my clothes are purchased from one or the other and I know I save money on what I buy. Even our sheets were cheaper & better quality compared to say Target. We are happy consumers.
You sound just like me. Costco actually takes a loss on the hotdogs, roast chickens, and sometimes gasoline!
I agree. I stopped shopping at both. Gas is a decent price and if you want a slice of pizza, that’s a good deal. But, at the price of membership? You can do better.
If they want me back, drop the membership cost. Even so, most items are still too high for what you can get elsewhere, especially on sale.
You couldn’t be more wrong. Obviously you shouldn’t buy items in bulk if they will go bad before you can fully use them, but those giant warehouse stores aren’t just filled with eggs and milk. You can save money by buying in bulk anything that you use on a daily or weekly basis. Zeph mentioned paper towels, garbage bags, and medications, and those are just the beginning. How about Ziplock bags? Spices? Peanut butter? YOU are delusional and horrible with money. I pity your immediate family for having to put up with your spending habits.
I have had both for years but gave up Sam’s because I could not continue due to the Walmart connection. I believe you shop with firms that reflect your principals. Costco while not the least expensive place to shop the quality is fantastic and the warranty is top notch. I also have a executive membership and get over $500 back each year with the Amex card. Sam’s is dreary to walk into with the bad lighting and lack of product option. While I would like Costco to offer more choice and give notice when they drop an item it still is my favorite place for most items. I also saved $1500 this year on a car that no dealership would match. Love Costco.
Part of the choice is philosophical as the two corporations represent the exact opposite on the political spectrum and there are just some things like the Walmart family having 40% of all the wealth in the USA – that I just won’t support.
My savings of gasoline, milk, and eggs alone cover most of the cost of my membership at Costco. My wife and I are empty nesters, and we don’t have a problem with spoilage. Just because these stores don’t jibe with your lifestyle doesn’t make them a rip-off.
If you think before you buy, you’ll do alright.
We belong to both, but we much prefer Costco. The Sam’s Club people are just like the Wal-Mart people: paid the minimum and you get what you pay for. The Costco people reflect the excellent pay and working conditions. We like the selection at Costco better than that at Sam’s Club, too.
Costco also has by far the best prices on hearing aids… for those folks who are in need of such devices…