How or why do member-based stores such as Costco and Sam's Club still exist nowadays?

[her209]

I used to be Costco member way back when (~10 years ago) but the prices at the chain grocery stores are for the most part on price par. Yet, every time I drive by these "bulk discount" stores, there are loads of people still shopping there despite having to pay an annual membership fee. On top of which, the shopping experience is always a pain in the ass because of having to find parking and dealing with the crowd. It seems the reason for the crowd is because there's not as many compared to the smaller chain grocery stores so there's a concentration of shoppers flocking to said store because the other store is way across town. But even if you're into the whole crowd thing, you do it membership free at stores like Walmart or Target. And as far as the whole membership thing, you can pay for Amazon Prime or another similar service and never even have to get in a car.

So why do people still pay to shop there?

 

[lxskllr]

I never saw a need. I can get stuff just as cheap, but with a couple more stops. I see them as being most useful for semi-institutional use by companies that aren't big enough for a proper supply service, but too big for just going to the grocery.

 

[88keys]

Don't know about Costco but I had a free membership at BJs once and I found that the only way to save money is to buy in massive quantities and the problem with that I neither need nor have the space for a 55 gallon drum of mayonnaise.

I guess if you have a big family along with plenty of storage space, you can make out pretty good. But otherwise it's really not all that.

Given the trend of millennials returning to the cities and hence occupying smaller dwellings; the mentioned stores will probably need to change their business model.

 

[drnickriviera]

I'm not sure what items you are shopping for, but I price compared a bunch of items. Costco would usually beat walmart prices by 10%, at worst i got an organic equivalent for the same price as walmart. I don't even bother with Amazon groceries, i have rarely found them to be a good deal.

 

[IronWing]

For me, cat litter. The unscented cat litter at Costco is sufficiently cheaper than that found in regular grocery stores to more than cover the cost of the yearly membership. Everything else is about the same price either place.

Lots of small businesses buy in bulk from Costco and resell.

 

[lxskllr]

For me, cat litter. The unscented cat litter at Costco is sufficiently cheaper than that found in regular grocery stores to more than cover the cost of the yearly membership.

How much? At BigLots, I get 28# for $7.50.

 

[s0me0nesmind1]

I used to be Costco member way back when (~10 years ago) but the prices at the chain grocery stores are for the most part on price par. Yet, every time I drive by these "bulk discount" stores, there are loads of people still shopping there despite having to pay an annual membership fee. On top of which, the shopping experience is always a pain in the ass because of having to find parking and dealing with the crowd. It seems the reason for the crowd is because there's not as many compared to the smaller chain grocery stores so there's a concentration of shoppers flocking to said store because the other store is way across town. But even if you're into the whole crowd thing, you do it membership free at stores like Walmart or Target. And as far as the whole membership thing, you can pay for Amazon Prime or another similar service and never even have to get in a car.

So why do people still pay to shop there?

It really depends.

If you need a CERTAIN item at the grocery store, depending on the chain it's going to be expensive. Now, you might be able to track down some coupons from the manufacturer or store for 25-50 cents off, but that's extra work you have to do to fish out coupons, print them, cut them, take them to the store.

Whereas, Costco is ALWAYS on a price point. Example would be things like TP and paper towels. They are hands down the cheapest option without having to fish out BS "sales" and such. They also have seasonal items that are very cheap. We bought a nice office chair and a carpet mat for it for less than $80.

In addition, unlike Grocery stores, they don't sacrifice quality for price. Their (I'm speaking mostly about Costco - fuck Walmart and their Sams) products in general are still top notch quality. If you get grocery store brands it tends to taste nothing like the name brand. At least for me /shrug.

 

[PottedMeat]

costco has higher quality stuff - also generally cheaper than all the chain groceries around me ( for things i use a lot of )

can't beat their freak of nature rotisserie chickens

 

[Spungo]

The lines at Costco are always much shorter. Needing to wait 5 minutes in line is very rare. In contrast, going to Walmart always has a 10+ minute wait in line. I also like how Costco only sells high quality products.

 

[mmntech]

costco has higher quality stuff - also generally cheaper than all the chain groceries around me ( for things i use a lot of )

can't beat their freak of nature rotisserie chickens

This. Their bulk beef is top notch. Usually costs the same as the grocery store, but grocery meat is usually of a lower grade.

 

[Red Storm]

As others have said, it's not just about price, quality is important too.

 

[drinkmorejava]

The thing is you can't just show up expecting to get the best deal on everything. If you go every few weeks you'll learn what is almost always cheaper than a grocery store/target and what's not.

In general, the free samples have a good sale. Their lamb chops are great (their meats are generally comparably priced but I think they're a lot better). Kirkland products are generally great quality and cheaper than other options. You can always get discounted movie tickets. The warranty (aka satisfaction guarantee) is awesome on expensive purchases. Tires (real ones, not $60 bottom of the barrel ones) have always been significantly cheaper than anywhere else and include a damage warranty.

 

[purbeast0]

i find it amusing that people will wait in the line to get gas for 30 minutes to save $5.

 

[waggy]

I have shopped at both costco and sams club. both carry named brand stuff. both have great meat counters. While you gotta buy in bulk both have higher grade stuff available (though so does the local butcher and hyvee).

Where you save is buying things like TP and paper towels. Granted you have to buy in bulk. cleaning supplies too. other stuff you need to pay attention to.

I still have both accounts but i'm going to let them die. Since i moved into town i don't need to buy 40 rolls of TP. sure i saved a few bucks but it's not worth it now.

The thing is you can't just show up expecting to get the best deal on everything. If you go every few weeks you'll learn what is almost always cheaper than a grocery store/target and what's not.

In general, the free samples have a good sale. Their lamb chops are great (their meats are generally comparably priced but I think they're a lot better). Kirkland products are generally great quality and cheaper than other options. You can always get discounted movie tickets. The warranty (aka satisfaction guarantee) is awesome on expensive purchases. Tires (real ones, not $60 bottom of the barrel ones) have always been significantly cheaper than anywhere else and include a damage warranty.

/this too. Kirkland products are great and cheap! THe TP is worth it alone if you are close.

 

[her209]

i find it amusing that people will wait in the line to get gas for 30 minutes to save $5.

Ikr. Imo, its more like $2-3 because you're really only saving $0.10-0.20 per gallon and assuming a 15 gallon fuel tank on a sedan.

 

[s0me0nesmind1]

The lines at Costco are always much shorter. Needing to wait 5 minutes in line is very rare. In contrast, going to Walmart always has a 10+ minute wait in line. I also like how Costco only sells high quality products.

Lines at Costco aren't shorter for me. They are often out towards the first aisles and getting in the way. Goodluck making your way through to a different check-out counter, because all the lines block your path (at least where I go to).

The DIFFERENCE, however, is that they don't have fat slobs working the check-outs as slow as humanly possible like a snail. So regardless of which line you get in, it tends to keep good pace.

 

[her209]

The lines at Costco are always much shorter. Needing to wait 5 minutes in line is very rare. In contrast, going to Walmart always has a 10+ minute wait in line. I also like how Costco only sells high quality products.

I don't know if things have changed since, but I've had the opposite experience. Reason is because the way Costco makes you go through the check out and the quantity of items being purchased by the other shoppers ahead of you. On top of which, you get stopped again and have to wait for the two door attendants to look over your receipt and cart before you are allowed to leave.

 

[QueBert]

The lines at Costco are always much shorter. Needing to wait 5 minutes in line is very rare. In contrast, going to Walmart always has a 10+ minute wait in line. I also like how Costco only sells high quality products.

Lines are shorter? Maybe technically, but it's offset by people who have 10x as much stuff. Last time I went there were 3 people in front of us, 2 had a huge pallet full of shit, and Costco's shopping carts are ginormous compared to any other store I go to. Costco takes forever to check out every time I've gone. But I don't have a membership so I only go with a friend once in awhile. So maybe my experiences aren't the norm. Walmart, which I go to about 3 times a week has self check out, I'm out faster than any store that doesn't have self check out. Thankfully most people at the one I go to wait in the regular lines, so I can zoom in and out.

I also save more money, have a better selection, don't have to bother with a yearly membership and don't have to buy in bulk.

 

[s0me0nesmind1]

i find it amusing that people will wait in the line to get gas for 30 minutes to save $5.

All while running their vehicle, hence burning fuel. In all honesty @ ~5-10 cent per gallon difference, you are really only talking about a MAX savings of ~$1.50, since most fuel tanks are ~15 gallons.

When there is a huge line, I completely agree.

 

[Svnla]

I have been a member of Sams (no Costco or BJ around) for almost 20 years. I don't ever pay full membership (former employer paid for it, then discount from internet special, etc.).

Just something I like to have, not just to save money.

 

[DesiPower]

Because their annual sales is more than Amazon's?

 

[Humpy]

The Costco membership fee keeps some of the diseased underclass away from me and at Walmart where they belong. :|

Plus, I've become accustomed to their toilet paper.

 

[BoomerD]

We've been Costco members since the early 90's. With the "executive membership," they send you a check at the end your annual membership for 1% of what you've spent during the year. (food court and gasoline aren't included in the total) For us, that almost always pays for the next year's membership upgrade, ($55/$110) if not the whole year's membership.
For just the two of us, some things aren't worth buying in bulk...but their beef is usually much better quality than the local grocery stores, the Kirkland-branded products are usually VERY high quality, equal to, or better than the "big name" brands, and you find stuff while wandering the aisles that you might not see in a "regular" retail establishment. IMO, companies use the various warehouse stores as "test beds" for new products/product lines to see if there's an interest in their product, to give their products "real life" testing, and as a way to actually introduce a product to the market.

 

[Subyman]

I have no need to go to the membership stores. They seem like a mashup of Lowes and a normal grocery store. I've never needed to combine those two things into one trip Any electronics I'll buy online.

Kroger/Publix have higher quality food than Sam's Club.

 

[GagHalfrunt]

Costco EASILY pays for itself for me and it's generally only on 20 or so items that I buy regularly. On many items Costco prices are no better than supermarket prices and on others Costco blows away even really good sales in supermarkets. Just on dairy items alone the Costco membership is worthwhile, prices on milk, butter and many cheeses are way better than my supermarket. 1 gallon of milk per week at $2.50 at Costco vs $3.99 in a supermarket and I'm $20 ahead for the year without buying another item in the entire store.