Costco today: two interesting observations...

[onewhippedpuppy]

We have Sam's club around here, but it's nearly identical to COSCO. Our membership is through my in-law's business, I think renewal is $40 per year. By shopping there, and shopping smart, we easily save that in one trip. Paper goods, cups, bowls, frozen foods, chips, deodorant, there's a lot of things that are dramatically cheaper. You get 4x the TP for the same price as what Target sells it for in a 6-pack. We buy big boxes of frozen foods for the same price as the little ones, then throw it in our basement freezer. However, there are some things that are not any cheaper, you just get more of it. If you compare and shop smart, it's worth the fee.

[Porsche-O-Phile]

The WalMart here is literally a third world country. I think it's technically foreign soil, kinda' like an embassy. I went in there once about two years ago (during the LBGP for film developing, 'cause there was nobody else around that could do it within walking distance) and was just horrified. It actually made K-mart look good by comparison.

[Rick Lee]

Originally Posted by Porsche-O-Phile

I can't fathom the idea of paying for the privilege of spending money in someone's "club".

If you don't save enough money by getting it cheaper at Costco to more than cover your membership, well then you're paying for the privilege.

When I first joined Costco, the annual fee was $35 and I only joined because they had tires for my BMW that were $100 cheaper than anywhere else. Yeah, I sure felt like I was paying for the privilege of saving a net of $65, not to mention shopping and saving there on subsequent visits.

[rusnak]

The membership fee is a simple one-time calculation. Would you pay $40 per year to save hundreds per year? For almost anyone, it's a no-brainer. Especially if you're a cheap bastiche like me and buy gas at Costco.

Same calculation for a Barnes and Noble discount thing.

What it really does is force you to pick between one membership club and another. Very few people are going to pay for more than one membership club card, and even fewer more than two. Are you a dual member of Sams and Costco? Or do you have a Barnes and Noble AND a Borders discount membership?

[dd74]

Originally Posted by Porsche-O-Phile

The WalMart here is literally a third world country. I think it's technically foreign soil, kinda' like an embassy. I went in there once about two years ago (during the LBGP for film developing, 'cause there was nobody else around that could do it within walking distance) and was just horrified. It actually made K-mart look good by comparison.

Never been to a Wal-Mart. I've heard the horror stories. Another place I stopped going is Home Depot - their customer service is absolutely abysmal. Plus, it seems no one speaks English at the Home Depot near me. Fry's Electronics is one more place I don't go. Nothing on display there seems to work.

I shop

For food/supplies @ Costco

For home repair stuff @ Lowes or Do-It Center

For electronics @ Staples, which isn't bad. Otherwise, I get it online.

[onewhippedpuppy]

I happily pay more to shop at Target vs suffering through Wal Mart. Absolutely not worth the money I save. The only reason I go to Wal Mart is their 5 qt jugs of Mobil 1, and I make a point of going at off times. Not much worry about being robbed at 6 am, and no screaming Mexican babies wearing soggy diapers running around the aisles.

[Rick Lee]

Originally Posted by onewhippedpuppy

I happily pay more to shop at Target vs suffering through Wal Mart. Absolutely not worth the money I save. The only reason I go to Wal Mart is their 5 qt jugs of Mobil 1, and I make a point of going at off times. Not much worry about being robbed at 6 am, and no screaming Mexican babies wearing soggy diapers running around the aisles.

Gawd, ain't that the truth?

However, I will say that my Wal-Mart experiences here in Phoenix have been as nice as Target was in VA. Wal-Mart in VA was exactly as you describe it. But it's a lot nicer an experience here.

[onewhippedpuppy]

I find it depends on the neigborhood. Our Wal Mart is between the nicest part of Wichita and the worst. So you know where the people from the ghetto go to shop. Other Wal Marts in solid middle-class areas are much more tolerable.

[Porsche-O-Phile]

I don't know that the calculation is so simple. Can you really estimate your savings over the course of a year ahead of time versus going to a competitor? Not so easy to do.

I've gone with friends to Costco a few times and honestly I didn't think the prices were all that spectacular. They were decent, but nothing I don't think I could've found elsewhere. I guess YMMV. For me it just seems not worth it overall I guess. And I just need quantities that'll get me to next week or so, not survive a 6-year-long nuclear winter.

[onewhippedpuppy]

You don't have kids. You don't understand the insane rate that kids consume food and normal household goods. I actually NEED those huge packs of TP, paper towels, and chicken nuggets.

[Rick Lee]

Originally Posted by Porsche-O-Phile

I don't know that the calculation is so simple. Can you really estimate your savings over the course of a year ahead of time versus going to a competitor? Not so easy to do.

I've gone with friends to Costco a few times and honestly I didn't think the prices were all that spectacular. They were decent, but nothing I don't think I could've found elsewhere. I guess YMMV. For me it just seems not worth it overall I guess. And I just need quantities that'll get me to next week or so, not survive a 6-year-long nuclear winter.

I absolutely know I can save $40 over the year at Costco, which makes the membership a wash at the very least. BTW, if you've followed the endless threads on new API SP ratings for oil and how it affects air-cooled 911 engines, you'll be happy to pay for a membership, since Costco is about the only place that still sells the SL-rated Mobil 1.

When I joined, there was no Internet and I'd never heard of Tire Rack. Still, saving $100 on my first purchase pretty much covered three yrs. worth of memberships. Oh, and if you're an impusle shopper, then Costco can sting pretty bad. If you just go there to getwhat you know they have cheaper than anyone else or stuff you'd buy and use anyway, then you'll save money for sure.

Matt, I think the first Wal-Mart SuperCenter I ever visited was in Wichita around 2000.

[cairns]

Same here. We regularly buy bottled water, some meats, cheese, cleaning stuff and paper towels. I would bet we save at least a thousand a year (there's only the wife and I). They also have some really good frozen manicotti.

[Pazuzu]

The pre-marinated pork tenderloins are great too.

[tcar]

Have a COSTCO just 6 blocks from home, save enough on gas to justify.

Went to Discount tire for tires, then just on a whim, went by Costco. Exact same tires, $110less for 4.

They had a special on Michelin a couple months later, bought tires for my Grand Cherokee for $180 less than Discount.

And they fill w/ nitrogen, FWIW.

I joined because a friend (real picky guy) that's really into cooking was raving about the meat. Lamb chops better than anywhere, he said.

You can also buy a lot of stuff online.

That said, the Target across the street had TV's on sale - better deal than Costco.

I'm sold - the gas is a great deal - mostly because it's so close.

[Tidybuoy]

Originally Posted by Porsche-O-Phile

I can't fathom the idea of paying for the privilege of spending money in someone's "club".

It's similar to these stupid "club cards" that a lot of the big chain supermarkets do now (Albertson's Ralphs, etc). I don't shop there and I certainly don't use those cards. Either give me the good price or don't. Don't think you're going to entice me to participate in some stupid glorified phishing scam by giving you my personal information to sell to a bunch of direct marketers in exchange for $2.00 off a box of rubbers. I'll go to Trader Joe's or somewhere else to get my groceries and whatever else for just as good a price (or better, in some cases) without the attitude, B.S. and attitude.

Costco is kinda' like glorified Wal-Mart, IMHO. Bleh. Even if they dropped the membership fee thing and card thing I probably wouldn't go there but maybe once every year or two.

There are plenty of people, like you, who don't enjoy the Costco type store and there's nothing wrong with that.

I personally like the store. I hated the constant soliciting for me to upgrade my membership - but I finally gave in. Last year, I got a cash rebate of $78 which reduced my membership fee to $22

Last week, I filled up with premium gas for $1.45 a gal and the lowest price in Fresno was around $1.65

Believe me, I don't buy everything at Costco. I pretty much hate the clothes and always find better stuff at Macy's. But Costco meets my needs for many things and it's 1/2 mile from my office.

[Tidybuoy]

Originally Posted by rusnak

I don't see a lot of "poor" people at Costco either though. Costco caters to all demographics, but the really lower income folks tend not to want to pay the membership fee, and they buy in smaller quantities at a time, even if it costs more per unit.

Poorer people also tend to use a credit card to buy things and Costco does not accept any credit cards excpet their own/American Express.

Just one more reason I own the stock (which has spilt once and doubled in value since my original purchase). It's always nice to own a company that makes a profit - which is unlike many of my other stocks.

[Tidybuoy]

Originally Posted by Porsche-O-Phile

I don't know that the calculation is so simple. Can you really estimate your savings over the course of a year ahead of time versus going to a competitor? Not so easy to do.

I also shop Costco because I just like the format. It's very easy to shop and I can get what I need. I really never try and estimate my savings. However, I know for a fact that when I hit the regular grocery store, I am amazed at how much things cost. It reinforces the fact that I am getting a better deal at Costco.

Granted, I have to buy a 40pack of toilet paper at Costco - but I never run out (and that's a good thing!)

[JavaBrewer]

Originally Posted by Tidybuoy

Last week, I filled up with premium gas for $1.45 a gal and the lowest price in Fresno was around $1.65

Last week when? 1974?

We also have the Executive membership and routinely get $200-300 back yearly. We do nearly all our shopping there including gasoline. Wine is also a great deal. We easily save $2 each on a < $12 bottle of wine vs. the local grocery or liquor store.

Love Costco but hate the food sampling hordes on the weekends who clog the aisles while eating 30 samples of a frozen pizza...

[jyl]

Wow, lots of interest in COST here.

Here's what I've found it makes sense to buy at COST:
- Meat, fish, poultry. High quality and low cost.
- Frozen, canned, dry, bottled foods and spices - if its something you consume in bulk and aren't looking for a specific high-end things. E.g. we buy regular olive oil at COST, but the yummy extra virgin I buy elsewhere.
- Household consumables - paper towels, batteries, etc. Again, if you consume in bulk.
- Clothes - generic stuff like socks, jeans, etc. Kirkland jeans are just as good as Levis, for example.
- Specific large-ticket things - if you've done the research and know exactly what you want, and they happpen to have it. Like a LCD TV, or a rug, etc. Bought some Oriental rugs at COST for around $2-3K each, the local Oriental rug places wanted $6-8K and their quality was no better (this is not a "tabs" level of collectors' rug, just something to use).
- Gasoline. Now that's a no-brainer, as long as you're there, why not save 10c per gallon?

Pretty easy to save more than enough to pay for the membership.

[Tidybuoy]

Originally Posted by dmoolenaar

Last week when? 1974?

It's tough being one of those super rich Costco shoppers.....ok, ok, I meant $4.45