Analysis

4 Signs a Costco Membership Isn’t Worth It for You

Costco has a well-deserved reputation as one of the best places to shop. It offers high-quality products, competitive prices, and it treats its employees well. Even after the yearly fee, a Costco membership saves many shoppers hundreds of dollars each year.

While there’s a lot to like about Costco, it’s not right for everyone. If any of the following are true, you might not get your money’s worth from a Costco membership.

1. You’re an impulse shopper

Lots of people save money by shopping at Costco, but some say they end up spending more. It’s usually because they buy much more than they originally intended.

Costco warehouses are designed to encourage impulse buys. You need to walk through the whole warehouse to get to the food sections. On the way there, you might find yourself saying “You know what? I could use a few of those Kirkland shirts.” The free sample stations and the rotating product selection don’t help, either.

Costco is great if you go in with a shopping list and stick to the plan. It doesn’t hurt to pay with a Costco credit card for cash back, either. When you do that, you can get what you need at a reasonable price. If you know you’ll be tempted to load up your cart with other items, a Costco membership could lead to overspending.

2. You don’t live near a warehouse

You’ll get the most value out of a Costco membership if you can shop there often. That’s a lot easier if you live within 15 to 20 minutes of a warehouse. You’ll be able to do your weekly grocery shopping there and stop in after work without going out of your way.

If the nearest warehouse is 30 minutes away or more, it’s a tougher decision. Each round-trip will take you an hour or more of driving. On top of the time commitment, you’ll spend more on gas and put more wear and tear on your car.

Some members still shop at Costco even though it’s a long drive away. They like the prices and the food quality, and they stock up each time they visit. A Costco membership could still work in this situation. Just make sure to consider how much value you’ll get over shopping somewhere closer.

3. You don’t have a lot of storage space

When you want to buy in bulk, Costco is arguably the best option. You’ll find 36-roll packages of toilet paper, two 28-ounce jars of peanut butter, four-pound bags of frozen berries, and the list goes on.

Buying bulk items is one of the ways people save money at Costco. The downside is that bulk items also take up much more space in your pantry, freezer, and storage closet.

If space is at a premium in your home, shopping at Costco can become a frustrating experience. You see an amazing deal for a product that you’d love to buy, but you quickly realize you have nowhere to put it.

4. You have other affordable grocery options

In some areas, Costco is a clear step above local grocery stores. It has much better food products, and the prices are just as good or better. In others, you can find quality food at reasonable prices pretty easily, and Costco isn’t that special.

That was my experience when I lived in Los Angeles, and why I eventually decided to stop shopping at Costco. I had plenty of places to buy groceries, some were closer to where I lived, and none of them required navigating through a massive warehouse. I realized that shopping at other stores was much more convenient and didn’t make an impact on my weekly grocery bill.

A Costco membership isn’t expensive, but it’s still $65 a year, or $130 if you get an Executive membership. If any of the above signs rang true for you, then you may want to shop elsewhere.

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