What is so great about Costco?

[Tom]

My theory about membership fees to shop..

The reason for membership fees isn't the $60 they get. What it does is-

a. it makes people want to believe they made a good decision by becoming a member so they look for perceived bargains. Like the $5 chicken mentioned in this thread. The fact is, in any big city I've ever lived in, you can get the same thing for the same price, or even less, at any number of stores that don't require paying a fee to shop there.

b. it keeps people from shopping around as much. Finding out that they aren't really saving any money would mean admitting they made a mistake, so there's pressure not to comparison shop.

c. because the store has a captive market, it doesn't have to offer as much selection, of brands and quantities. People will buy what the store sells, not what they might have chosen if they had a choice. This saves the store a lot of money on inventory and purchasing.

d. even Costco's return policy is interesting. Because a person paid a membership fee, they feel like they belong to something sort of like a family. Most people don't want to hurt their family, so it's unlikely they would "Abuse" such a generous policy. And I'm sure that anyone who returns too much stuff, gets kicked out of the "family".

 

[ondarkness]

Originally posted by: Tom
My theory about membership fees to shop..

The reason for membership fees isn't the $60 they get. What it does is-

a. it makes people want to believe they made a good decision by becoming a member so they look for perceived bargains. Like the $5 chicken mentioned in this thread. The fact is, in any big city I've ever lived in, you can get the same thing for the same price, or even less, at any number of stores that don't require paying a fee to shop there.

b. it keeps people from shopping around as much. Finding out that they aren't really saving any money would mean admitting they made a mistake, so there's pressure not to comparison shop.

c. because the store has a captive market, it doesn't have to offer as much selection, of brands and quantities. People will buy what the store sells, not what they might have chosen if they had a choice. This saves the store a lot of money on inventory and purchasing.

d. even Costco's return policy is interesting. Because a person paid a membership fee, they feel like they belong to something sort of like a family. Most people don't want to hurt their family, so it's unlikely they would "Abuse" such a generous policy. And I'm sure that anyone who returns too much stuff, gets kicked out of the "family".

paying for the chicken and my membership with my AMEX ends up at the end of the year with Amex sending me a $150 check, and Costco sending me another $100 and change check to spend on anything.

I don't know of any mom and pop chicken store that is even considering giving me money back for any reason nor would they be willint to take back the chicken I bought there a week later.

 

[Tom]

I find it hard to believe that if I joined Costco with my Amex, and bought one rotisserie chicken for $65(5+60), that I would get $250 back at the end of the year.

Is that true ?


I do get cash back from Chase bank, when I buy Mom and Pop chicken with my CC, btw. And I don't pay any fee to Chase or Mom and Pop chicken.

 

[ondarkness]

Originally posted by: Tom
I find it hard to believe that if I joined Costco with my Amex, and bought one rotisserie chicken for $65(5+60), that I would get $250 back at the end of the year.

Is that true ?


I do get cash back from Chase bank, when I buy Mom and Pop chicken with my CC, btw. And I don't pay any fee to Chase or Mom and Pop chicken.

It was more like an entire year's worth of purchases including the chicken.
When you obtain membership to Costco it's usually not just for the chicken.
Costco doesn't have late fees and APR's looming for any opportunity.
(I hate to see this turn into fanboy-ism, but when my totals are added up Amex and costco become my best spending situation rather than any of the other Chase,Citi,Chase,Citi creditcard cash back options.)

Shopping at costco is a great experience overall in my experience, and with the ease of use that Citi,Chase have proven to me in the past I'm not that exited to try any of their services. That's my opinion.

 

[Tom]

Originally posted by: ondarkness

Originally posted by: Tom
I find it hard to believe that if I joined Costco with my Amex, and bought one rotisserie chicken for $65(5+60), that I would get $250 back at the end of the year.

Is that true ?


I do get cash back from Chase bank, when I buy Mom and Pop chicken with my CC, btw. And I don't pay any fee to Chase or Mom and Pop chicken.

It was more like an entire year's worth of purchases including the chicken.
When you obtain membership to Costco it's usually not just for the chicken.
Costco doesn't have late fees and APR's looming for any opportunity.

I don't pay any late fees or interest on my CC. And I get $250-300 back every year from Chase, if you are going to include more than one chicken. And I don't have to pay any membership fee to get it. And I shop wherever I want.

and I'm willing to bet you are wrong that if you don't pay your AMEX bill from Costco you don't have to pay late fees and interest.

 

[UsandThem]

Another good thing about Costco is you can get a full refund fee on your membership charges at anytime during the year if you aren't happy.

Hell, I could buy just eight gallons of milk a month and it would pay for my membership fees. I save .60/gallon. 8 gallons x .60 (savings) = $4.80 x 12 months = $57.60

Trust me, just like any store you have to really make sure you are getting a good deal, however there are always really good deals there. Do I buy everything there? No, however I do buy 75% of my groceries there.

 

[ondarkness]

I'm not aware of anyone I know that uses an Amex that ever carries a balance from month to month, ergo avoiding anything to do with late fees and such.
Regular credit cards and their great customer service has proven much less convinient than that of Costco and Amex.

and about shopping anywhere I want, usually a little price checking still leads me to purchasing for the most part at Costco.

 

[SoulAssassin]

I like the way some of the meat is individually packaged. Say you get a pack of 16 boneless chicken breast, it will come in 8 individual 2 packs. Just throw 'em in the freezer and the night before just grab a 2 pack and throw it in the fridge. I used to go to BJ's and would have to immediately take all the meat and split it into freezer bags when I got home which can be a PITA.

 

[JS80]

pay twice as much for 3 times the food

 

[Tom]

Yea, I didn't mean by my comments that everyone who joins Costco or Sam's Club would behave in those ways, my point was more about the real reason why places charge membership fees in the first place.

I'm sure Costco is a great deal for lots of people and particular purchases.

 

[Tom]

Originally posted by: Demon-Xanth
In a super market:
28oz bag of hot wings: $8
In costco
80oz bag of hot wings: $13

Pepsi (and other name brand sodas) is about $8 for a 36 pack every time.

80oz bag of hot wings: $13= $2.60 a pound for chicken wings ?

And what size Pepsi comes in a 36 pack ?