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Both Costco and Sam's Club are warehouse clubs that you pay a membership fee to join. Many people opt to pay the cost of membership because these warehouse clubs offer bulk bargains.

For most people, it doesn't really make sense to join both Costco and Sam's Club. There's a lot of overlap between what the stores offer, and your budget might not bear the cost of both. But it can also be hard to know which is the right one. If you're currently a Sam's Club member and are considering making a change, be on the lookout for these three signs that a Costco membership may be better for you.

1. You prefer quality over quantity when buying store brands

Both Costco and Sam's Club each sell their own store-brand products. Costco's is the Kirkland Signature brand, while Sam's Club's house brand is Member's Mark. Sam's Club actually has more Member's Mark products, launching or reformulating more than 1,200 items just since 2020 alone, while Kirkland has around 350 products total.

But Costco is generally better-known for the quality of its Kirkland products. There are a huge number of devoted Kirkland fans, and the store's been rigorous in its selection process, with the warehouse club's co-founder and former CEO indicating that the goal was to ensure its products were "equal or better quality than national brands."

So if you prioritize a smaller number of high-quality products over a larger selection of store brands, Costco could be the right choice.

2. You want the most flexible possible return policy

Costco and Sam's both have great return policies, offering the chance to return most of the items you buy with no questions asked. However, Costco is slightly more flexible than Sam's for a few key reasons.

For one thing, Sam's Club "prefers" that you have a receipt and says it will "do its best" to process returns if you don't, while Costco doesn't need a receipt. Costco also has fewer restrictions than Sam's, allowing you to return cellphones within 90 days of purchase while Sam's won't take cellphones back at all.

So, if you want to make sure you can bring back any items that don't work out right even if you've tossed out your receipt, Costco may be a better store for you.

3. You're looking for a bigger store

Finally, if you're looking for a little more room to browse, Costco is going to be the right choice for you. The average Costco store is around 147,000 square feet, while Sam's Club warehouse clubs average around 136,000 square feet.

Having more room makes it easier to navigate, especially if you tend to do your shopping on more crowded weekend days or weekday evenings.

If you spot any of these signs, it may be time to cancel your Sam's membership or simply not renew and break out the credit cards to pay for a Costco membership instead. The good news is, Costco allows you to cancel your membership at any time, so if you try out the change and it doesn't work for you, you can always go back to Sam's.

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