Which Warehouse Club is Cheapest?

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Which Warehouse Club is Cheapest?

Submitted by: Tip Hero 06/11/2009 12:10 PM

Ever wonder which warehouse club to join (if you're lucky enough to have the option where you live)? And ever wonder how much savings you're really getting? Thanks to a recent article by SmartMoney, we've got answers.

According to the article, these warehouse clubs (BJ's, Costco, Sam's Club) save "an average of 30% per item". Wow, that's big savings! Even if you factor in your membership cost, you should still be able to save a lot of money.

One caveat of our own we'd like to toss out here right off the bat: From our own experience, these clubs do offer good values, but if you end up throwing a lot of it out because you overbought, then you may not be saving as much as you think.

All in all, it appears that there really are big savings abound at these clubs, though you need to be aware that not everything you find is a good deal.

For example, the article notes:

A gallon of skim milk at Sam's Club, for example, costs $1.88, while Costco charges $2.29. Need to stock up on Secret deodorant? At BJ's, it's 81% cheaper than at the supermarket, while the savings is 67% at Sam's Club.

We took a screen shot of part of the chart that they put together to show savings for individual items across the different clubs (or, in some cases, added costs) when compared to regular grocery stores and supermarkets (click the chart below to see it in full):

Interesting to see that some items, like bell peppers, were a lot more expensive at the clubs than elsewhere, while buying allergy medicine was a much better deal (see our related tip Are You Paying Too Much for Over-the-Counter Medicine?).

A couple of other interesting tid-bits from the article:

The most obvious disparity is in annual membership fees -- $50 at Costco, $45 at BJ's Wholesale Club (BJ's is offering a two-month free membership with this coupon) and $40 at Sam's Club, a division of Wal-Mart. But in-store prices and policies play a bigger role when it comes to your bottom line at checkout.

There's also a related link in this article to 10 bulk-buying bargains, which includes corn oil, tooth brushes, cereal, and more (there's a slideshow that shows all 10).

Got any tips of your own for buying in bulk/buying at warehouse clubs? Share with the Tip Hero community by posting a comment below!

Warehouse clubs: Which is cheapest? (SmartMoney)

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Comments:

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I know that Costco changes their prescription medication prices from week-to-week based on the cheapest price they can pay for them from their suppliers. When I was without health insurance last winter, I found that they had the best prescription medication prices.

Posted by anonymous on June 11, 2009 6:19 PM

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I think that the reason the bell peppers seem more expensive at Sam's Club is because the peppers at Sam's are the red, yellow, and orange peppers - 6 in a pack for $5.88. When I compare the cost of colored peppers (as opposed to green peppers) at my local grocery stores, they are far cheaper at Sam's Club. Colored peppers often cost more than meat per pound in the grocery store, but at Sam's, you can afford to enjoy a sweeter, more ripe pepper for a reasonable cost. Some people may not care, or prefer the taste of a green pepper, but I prefer the sweetness of the fully ripe peppers, which are colored. Green peppers are colored peppers that aren't quite ripe when picked.

Posted by anonymous on June 11, 2009 7:13 PM

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The bottom line in shopping is to remember that no one source of food has the cheapest price on everything. We do have a BJs membership, but also shop at Wal-Mart, health-food stores, bakery-thrift shops, salvage-food stores and so on.

We go to some supermarkets when there are loss-leader sales. We may hit these various places only once a month. You just have to know prices, and when you find things at low prices, stock up.

We have sometimes purchased items at BJs for friends who can't justify a membership.

Another way to save on the membership fee... shortly before your membership is due to expire, stock up on all the foods you typically buy at the warehouse store. Then don't renew for several months.

Posted by anonymous on June 11, 2009 11:01 PM

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I buy the gallon size of dill pickles at Sams, add sugar to half for sweet pickles, chop some for dill relish and slice some. Very cost effective.

Posted by anonymous on June 12, 2009 7:06 AM

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It is worth pointing out that B.J.'s will accept manufacturer's coupons and will accept them in multiples if the package is in multiples. This can make a significant difference in unit cost.

I keep a price book of B.J.'s unit cost on the items we use regularly and therefore can compare the prices in the grocery store flyers each week. If the grocery store price is better and I have a coupon that the grocery store will double, then I of course buy it there. I usually stock up on items at BJ's that are consistently cheaper, and buy gas there as well, making my trip worth the cost.

I agree with the comments about red & yellow peppers being less expensive at the warehouse stores; however they are far cheaper still at farmers markets.

Posted by susan on June 12, 2009 3:20 PM

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It is worth spending the few extra bucks on the rewards membership that gives back 2% in store money. Even if you don't spend that much, it will at least cover the membership cost for that year.

Posted by anonymous on June 12, 2009 10:03 PM

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When at Sam's Club, watch for the items ending in a penny, ie: $36.01. They must move stock off the floor before bringing out the next pallet so they move the product faster by discounting it - but they don't always make a big deal of it. You just need to watch for those items ending in a penny. Sometimes they are at the back of the store in a clearance section, but a lot of the time, they are just in their regular place with similar matching items. I bought a whole patio set for $291.01 - it was originally $1500. Couch, love seat, two chairs and a marble top table with a "River of Fire" down the center. Sometimes I buy up items like dish soap that is only $.51 per bottle and help out single moms that we know.

Posted by anonymous on June 13, 2009 4:27 AM

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It's worth nothing that the "average of 30 percent per item" saved at the warehouse clubs only applies if you are buying the same brand. I took my price book to BJs once and found that the prices there were almost never better than the prices on store brands of the same products at my local supermarket. BJs does sell a few items in its own house brand, Berkeley and Jensen, but not many. I summarized my findings in this article: http://www.stretcher.com/stories/06/06jul24f.cfm

Posted by haverwench on June 13, 2009 7:57 PM

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You can usually save money by buying groceries from bulk bins instead of in packages. Health/natural food stores have a lot of bins.

Posted by anonymous on June 16, 2009 12:17 AM

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In my area, Costco seems to be the winner, and here's why:
*Sam's is very consistent with the items they offer year-round, whereas when you go to Costco, you never know what new items you may find.
*Although I do purchase most of my meat from a butcher, once in a while Costco beats his prices, especially on excellent quality stew meat and steaks.
*I have not been able to find a better price for bottled spring water than Costco's Kirkland brand.
*I signed up for a more expensive Executive membership with which you get a 2% rebate at the end of the year for most things you purchase (excludes gasoline and gift cards) and the rebate covers the membership fee.
*I save a ton by buying dog food from Costco.
*I bought a gorgeous, excellent quality solid wood bedroom set from Costco a couple of years ago for $2,500 including delivery. A very similar set cost over $8,000 at a furniture store. The set includes a sleigh king-size bed, two night stands and a gentleman's chest. Did I mention that I got a 2% rebate at the end of the year? $2,500 X 2% = $50!
*Once a month Costco mails members a coupon book. That's when I stock up on laundry detergent, dishwashing liquid, dishwasher gel packs, rinse aid.
*I also try to only shop at Costco once a month during the coupon days, which helps curb the spending (that way I don't go "oh, look honey, this is so cheap, we should get one" and end up with $200 worth of stuff I wasn't planning on buying, but picked up anyway because "it's so cheap").
*Also, just like Sam's prices their items with a $0.01 at the end, Costco prices the closeout items with a $0.97 (i.e. $19.97)
*I do not have a farmer's market close by, so I purchase all of the produce from Costco. It is much better quality an A LOT cheaper than my local grocery store.

Posted by anonymous on June 29, 2009 8:44 PM

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I agree with the post on Costco. I shop there about twice a month. Their ribeyes are the best I can find anywhere. I also purchase my paper towels and bathroom tissue there.

Costco is so much cheaper and sometimes the first to release new books. I get my James Patterson fix as soon as costco put them out for sale.

Posted by anonymous on July 02, 2009 2:56 PM

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Costco has restaurant quality meats and their presliced coldcuts (Kirkland ham and Butterball turkey breast) are about $2.49 per pound which is a LOT less than the supermarket cold cuts at around $6 per pound.

Their butter is 1.59 or so per pound, half&Half about 90 cents less per quart and a FOUR POUND CHEESCAKE FACTORY CHEESECAKE is about $10=$2.50 per pound--I CANT BUY THE INGREDIENTS FOR THAT Cheap!!

Coffee is a good buy as are paper goods but the treasure hunt is why you go--I got a new netbook for 299 with 160 gigs of hard drive and as fast as my 800 laptop and a lot more portable. My Garmin was $200 cheaper than I could have gotten it anywhere else and I got a Nordic Trac eliptical machine for $799 which was $500 cheaper than ANYWHERE for the same model!

Good prices yes--but the unadvertised treasures you stumble over are amazing--and buy them when you see them because they won't be there when you go back!

Posted by Teri Davis Newman on July 06, 2009 1:00 PM

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