Image source: Upsplash/The Motley Fool
I'm thinking of taking the plunge on a Costco membership later this year. I'll have more storage space after I buy a house. Plus, so many of my colleagues here at The Ascent are Costco superfans, and I'm curious to see how much I can save on household staples and more by shopping at Costco.
Unfortunately, I don't live particularly near a Costco warehouse location -- the closest one is about an hour away by highway. This means I won't be able to visit every week, and based on my busy schedule and general dislike of large crowds, I'd probably be looking to visit perhaps once every other month.
Thankfully, the nearest Costco is in a city with restaurants and other stores I like visiting, so I can combine a Costco run with some of these activities and feel better about making the drive. Just the same, though, I decided it was a good idea to evaluate my options for Costco shopping that don't involve the savings on bulk perishable groceries that some of my colleagues with kids and nearby warehouse locations enjoy. Specifically, is it worth spending $60 (or $120, for an Executive membership that entitles me to 2% cash back on Costco purchases) for an annual membership? Here's what I found out.
Costco.com shopping
Even if you can't get to Costco weekly for groceries (or even monthly to stock up on nonperishables), you can still shop on Costco.com. (And unlike Costco warehouses, you can use a Visa or Mastercard to shop online -- in store, as far as credit cards are concerned, you're limited to Visa cards only.) It's important to note that you will pay a higher price for purchases to order online, though. This is due to additional charges for shipping and handling.
Plus, the nice thing about online shopping is that it's easy to compare prices and make sure you are getting as good of a deal as is being advertised. Just be sure you're comparing prices on like products -- sometimes retailers sell a special model of a given item, and you won't be able to find it elsewhere.
Savings on one-time big-ticket purchases
You'll certainly have access to big-ticket items, like furniture, computers, and jewelry, on Costco.com, but you can also find these purchases in store. The math here on whether Costco is worth it is pretty straightforward -- can you save at least $60 on a given item by buying it at Costco? If so, you'll have paid for your membership. And if you have room in your budget for the upfront cost of an Executive membership, you'll need to save at least $120 on the purchase in question -- this might be more likely if you're buying something pricey, like a new sofa.
Prices on nonperishable items
Personally, I don't necessarily intend to buy big-ticket items at Costco -- my interest lies in obtaining cheaper and larger packages of nonperishable staples and household goods. (My running joke is that I intend to construct a fort out of Kirkland Signature toilet paper in my basement after I move into my new home.) If I can make even just one Costco trip every other month, and save at least $10 each trip, I'll have paid for a $60 membership (saving $20 on each trip would equal the cost of an Executive membership).
Looking at toilet paper specifically, I investigated costs for the store brand TP I usually buy at my local grocery store, compared to costs at Costco. I generally buy TP in a six-pack, because I currently have limited storage space in my apartment. This frequently goes on sale for $7.59 per six-pack, and there are 322.66 square feet per pack, for a price of $0.024/square foot. Costco's Kirkland Signature Bath Tissue is priced at $23.49 on Costco.com, and comes with 1,425 square feet per package, for a price of $0.016 each.
Even on sale, my grocery store's TP price for what I currently buy is 50% more than what I'd spend at Costco. (And since Costco.com prices are slightly higher than in-store prices, my savings are likely to be even greater.)
Ultimately, it's a risk-free proposition
Even if your nearest Costco is too far away to make it possible to drive to every week (or even every month), you still stand to save money by joining. The key is focusing on Costco's online deals, lower prices for bigger-ticket buys (be sure to comparison shop!), and bulk nonperishables. And hey, if you find yourself not using your Costco membership as much as you thought you would, Costco's stellar return policy even applies to memberships. Costco will cheerfully refund your membership cost if you're not satisfied.
Top credit card to use at Costco (and everywhere else!)
If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.
Click here to read our expert recommendations for free!
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Costco Wholesale, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
