Is Costco Cheaper Than Supermarkets?
up to 70% cheaper :
- Tires
- Baking supplies
- Detergent
- OTC medication
- Snacks
- Office supplies
- Tires
- Baking supplies
- Detergent
- OTC medication
- Snacks
- Office supplies
While you might instantly think Costco always works out cheaper, you might be surprise to know this isn’t always the case. We compared prices for several popular everyday household items and found the same items can actually be found at a lower price elsewhere.
There’s really no definitive answer: The bottom line is that a Costco membership can be worth it, depending on how often you go and what you buy. If you love Costco but only visit for its
But while the new CIBC rewards card looks good (excellent, even), many of us can’t help but ask: is it really better than the Capital One Costco Mastercard? Neither rewards card will earn more cash back at Costco stores. So what really makes this card
How does Costco make money?
Costco makes most of it’s money by membership fees. It only marks up merchandise 15% or less compared to other retail places which can mark up to 50% or more above suggested retail. We only carry the best of the best, and only carry items from manufacturers that will allow us to price point an item by our standards.
There are two reasons why this works. With many products, the package may cost more than the contents. A twice size package may cost about the same as the small one. Plus Costco can buy in high volume and get a bulk deal. These sales are guaranteed, the pay is fast and there are fewer locations to deliver to.
A warehouse is easier to set-up and maintain than a typical retail store as you don’t require fancy shelves, bright lights, nice flooring, etc. Many items, few options. They will have one or two types of ketchup for sale, not 10.
The business model is basically break even on products make money on service, the service being the membership. Costco does not manufacture Kirkland products as someone wrote. Like other companies they contract with a manufacturer that puts the Kirkland label on it.
Costco sets full skids of merchandise in the hole. A Costco associate can restock an entire aisle faster than a Walmart associate can restock two bays. This isn’t a universal – they sell some softgoods that are displayed on tables – but it’s not far from one.
Firstly, there was a time when Costco accepted returns on electronics such as laptops and TVs just as it does on anything else (ie whenever and for any reason). However, now there is a 90 day limit on returns of electronics. This limit was imposed as a direct consequence of abuse of the previous return policy.
How much does a strawberry pop tart cost at Costco?
Walmart offers the strawberry Pop-Tarts for 11.4 cents per package, while it costs 25.9 cents per package at Costco. Costco’s Pop-Tarts are nearly three times more expensive than Walmart’s. Good to know for your last-minute breakfast needs.
It’s always good to know the cost of one of the most common purchases. Costco sells 2 gallons of Vitamin D milk for $5.99, which is about $3.00 per gallon.
And while Walmart is famous for their “roll-back” pricing and price matching with competitors, there are still some items that are more expensive than at Costco. The only way to tell which store is cheaper is by comparing unit price, since quantity size can differ.
How many stores does Costco have?
Costco has 414 US outlets, makes $70bn in annual sales and is a fast-growing international operation, with its 22nd UK store opening next month in Coventry. Rival cash-and-carry group Makro has grown to 30 stores in the UK with ÂŁ1bn in sales, although its membership criteria is more restricted.
Third – and this is key – is the unusual need to hold down a certain type of job: you must be a public-sector worker (NHS, education, emergency services, local government), or a qualified professional such as a pilot, solicitor, magistrate or banker, before Costco will accept you as a customer.
As the results show (see table below), prices at Costco are, indeed, cheaper – as much as 43% better – but, in some cases, there was no price advantage, or they could be purchased cheaper on the high street.
About one-third of Costco’s customers are from the public, the rest from trade. The store refuses to take credit cards as it says the transaction charges are too expensive and would have to be passed on to customers. And you can’t lend the card to your friends as it carries the holder’s photo.
However, Hellman’s Mayonnaise was pricier in Costco than Sainsbury’s, Toilet Duck was 20% cheaper in Asda, and Flash cleaning liquid was 25% cheaper in Tesco. But overall, Costco still beat the supermarkets, and its deals on white goods and electronics can be even cheaper than Amazon. Each Costco warehouse is designed to sell the maximum amount …
In Costco, it was 8p a tablet, 43% cheaper. The drawback is that you have to buy the 90-tablet pack. Heinz tomato ketchup was another winner for Costco. In Sainsbury’s, again the cheapest of the supermarkets, it is 30p per 100g, an extraordinary 66% more expensive than Costco. But you have to buy a lot of ketchup to get that price;
Costco shoppers have to be public sector workers or qualified professionals . Photograph: Jim Young/Reuters
How many dishwasher tablets does Costco sell?
Business owners will benefit from larger sizes that you wouldn’t necessarily find in regular supermarkets. For example, Costco sells a 105-pack of Fairy dishwasher tablets – whereas the biggest size you’ll find in Waitrose is 75 tablets.
How to cut the cost of your shop 1 Write yourself a list – Only buy items that you need. If it isn’t on your list, don’t put it in the trolley 2 Create a budget – Work out a weekly budget for your food shopping 3 Never shop hungry – You are far more likely to buy more food if your tummy is rumbling 4 Don’t buy pre-chopped veggies or fruit – The extra they’ll charge for chopping can be eye watering 5 Use social media – Follow your favourite retailers to find out about the latest deals 6 Be disloyal – You may want to go to different stores to find the best bargains 7 Check the small print – It’s always worth checking the price per kg/lb/litre when comparing offers so you’re making a like for like decision as a bigger box won’t necessarily mean you get more 8 Use your loyalty cards – Don’t be afraid to sign up to them all. They all work slightly differently – work out what bonus suits you better and remember to trade in your points for additional rewards
Most items must be bought in bulk. The majority of products you’ll find at Costco come with a minimum spend, meaning you’ll need to buy more than one to get the offer price. So if you’re tempted by a deal, make sure you have the cupboard space and cash for multiple buys. If you go to supermarkets, you may find the same item at a slightly higher …
But unlike your local Tesco or Morrisons, you can’t just stroll in and have a browse – you need a membership card to shop in Costco. The majority of Costco’s customers are traders but a third of shoppers buy for themselves.
Prices don’t include VAT. If you’re shopping in-store, keep in mind that most products don’t include VAT. This means that some deals can, at first glance, look cheaper than they necessarily are. Look just below the advertised price for the full amount you will be expected to pay at the check out.
If you’re going to be browsing regularly, then the answer is probably yes – if not, you’d maybe be better saving your cash and keeping an eye on supermarket deals. We’d suggest having a browse of the Costco website to work out what you’d by, how often, and see if this saving is worth more than the membership price.