Which Is Really Cheap?
You’re standing in front of a giant wall of toilet paper, trying to figure out if you’re really saving money or paying for the privilege of a lifetime.
Many people treat warehouse clubs like a religion, but let’s be real: they are businesses designed to use you to spend. If you want the lowest price, you should look at rotisserie chicken and do the math.
It’s easy to get swept up in the hype of a $1.50 hot dog, but that doesn’t tell you much about your monthly grocery bill. To find the real winner, we have to look at the cover charge to get in the door and what you’ll pay for supplies. Here’s how the big three stack up.
Entry price
Before you touch a giant bag of frozen berries, you must pay for the right to buy. If you look strictly at the entrance fee, there is a clear plan.
1. Sam’s Club: This is the budget leader. Its basic Club membership costs $50 per year. But honestly, you shouldn’t pay full price for this. Sam’s Club is famous for running promotions that drop that price to $25 or $20 for new members.
2. BJ’s Wholesale Club: It costs $60 a year for a Club Card membership. It has recently adjusted its costs to stay competitive with other giants.
3. Costco: A large dog is also very expensive. A basic Gold Star membership will set you back $65 a year. They don’t often do the same kind of deeply discounted membership drives that you’ll find at Sam’s, so don’t hold back for a discount deal.
If you spend a lot, the upgraded categories (Executive at Costco, Plus at Sam’s, or Club+ at BJ’s) all earn 2% cash back, but cost about twice as much per year.
You’ll typically need to spend $3,000 to $3,250 a year to break even on the additional membership fees. (Related: “Which Warehouse Membership Is Worth It – Costco, Sam’s Club or BJ’s?”)
Who wins the grocery wars?
Membership fees are only one part of the equation. Most important is the price of the items in your cart. When it comes to the basics – milk, eggs, flour and coffee – the winner is not what you might expect.
While Costco’s Kirkland Signature brand has a huge following for its quality, it’s not always the cheapest. In price tests, Sam’s Club often beats out both of its competitors on price per ounce of pantry staples.
For example, Mashed found that Sam’s Club often has lower prices for twenty eggs and large bags of flour compared to the other two. (Related: “5 Ways Sam’s Club Is Better Than Costco”)
BJ’s tends to be more expensive than Sam’s Club per unit, but it has a subtlety that others don’t.
BJ coupon loophole
If you’re the type of person who uses coupons, BJ’s is your best friend. The only warehouse club that accepts manufacturer coupons. You can stack those on top of BJ store coupons to lower prices. (Related: “6 Things BJ Members Can Get for Free”)
Costco and Sam’s Club do not accept manufacturer coupons. They offer quick savings, just basic merchandise, but you can’t bring in the coupon you received to save another dollar on your cereal. If you’re loyal and a coupon expert, BJ’s may be your cheapest option regardless of shelf price.
Gas, tires and technology
Cheap milk is great, but the real savings often happen at the tap. All three clubs offer discounted fuel, and it’s almost always cheaper than the station down the road. However, you should consider the cost of waiting time.
If you’ve ever tried to get gas from a warehouse club tap on a Saturday morning, you know it’s a test of patience.
Check-out lines can also be long. This is where Sam’s Club shines, after making a big push into technology to solve this. Its Scan and Go app makes the checkout process much faster than the old-school lines at Costco. In fact, Sam’s Club recently beat Costco in a customer satisfaction survey because of that technology.
Costco is trying to get help by testing more mobile features, but for now, it’s still lagging. However, it recently increased its gas rebate to 5% for cardholders, which is a big win if you’re a passenger.
An important point
If you’re looking for the lowest out-of-pocket cost of membership and everyday low prices on staples, Sam’s Club is the winner. Walmart warehouse clubs, which makes sense since Walmart owns it.
If you’re a coupon enthusiast who wants a great value grocery store experience, BJ’s is the way to go.
And with Costco, you pay for quality and a better return policy. It’s rarely the cheapest in a downhill race, but many fans find the quality of the Kirkland Signature product worth the extra few bucks. Just make sure you actually use the membership enough to justify that $65 cover charge.
(Related: “10 Costly Thrift Store Mistakes”)
