Pros and Cons of Costco

Costco is a warehouse-style membership club that sells bulk products within all kinds of categories – groceries, electronics, clothing, and home goods. With over 800 stores globally, Costco has retailers covered as far as where to shop by families, small businesses, and those that want to shop smart.

The idea of shopping in bulk is not for everyone, so in this article, we discuss the benefits of and drawbacks to Costco shopping, to help you determine if membership is right for you.

Pros of Costco

1. Buying in Bulk can Save Money
Costco drives down the price of unit costs for buying in bulk. The reality is that when you buy in bulk, you generally pay less for each unit. This can add up significantly over the long term for large families or on high consumption households.

2. High-Quality Private Label Products
Costco’s in-house brand, Kirkland Signature, actually boasts a lot of customer loyalty and will often provide a quality product at a lower price. In fact, many Kirkland products are as good, if not better than, nationally branded products.

3. Wide Assortment of Goods
Costco has a wide assortment of goods and services ranging from fresh produce, and staples, to larger items like furniture, appliances, and even vacation packages, all under one roof.

4. Great Returns Policy
Costco’s return policy is fair and consumer friendly, as most products come with a satisfaction guarantee. It’s nice to know that if you are spending a significant amount of money, you have some peace of mind with Costco’s return policy.

5. Competitive Gas Prices
If you haven’t noticed, a number of Costco locations have associated gas stations, typically offer lower fuel prices which is a benefit for frequent drivers and temptation that can pay off over time.

6. Free Samples and In-Store Promotions
Many shoppers enjoy being able to munch on free food samples and seasonal discounts, or need I say pop up in-store events? All the in-store sampling promotions make the shopping experience more enjoyable.

7. Health & Optical
Costco also has pharmacies, Vision Centers, and even hearing aids services which are usually lower costs than independent providers.

8. Business & Travel Discounts
Costco also offers related services such as check printing, insurance, and discounted travel deals – through its business services programs and concierge services.

Cons of Costco

1. Membership Fee
You have to pay an annual membership fee to shop at Costco. If you spend more time in the store, maybe it will eventually pay it off for you. If you are shopping infrequently, it might be harder to justify.

2. Bulk Purchases
Bulk purchasing can also make you waste products when packaged at the bulk rate because you may not consume all that you purchased before it expires. Households that consume less may be at a loss quantitatively on product with larger quantities in less time.

3. Impulse buying and overspend
Using the store’s rotating products layout can impact your impulse buying (overspending) since you typically arrive for just a few things that you reach for, but will leave with things you did not expect. Then savings can turn into clutter, or an unwanted item for some that aren’t really saving money, but it’s gone.

4. Limited selection of brands
While great products, the variety of brands can be limited for me. Even though I am open to trying similar products, I may not find my particular brand or item every time.

5. Busy stores
Costco stores can be overwhelming, especially on weekends. Stacked to the rafters with products, long check out lines, and desperate shopping for parking, which can provide a less than stellar experience if the location happens to be busy.

6. Not a traditional grocery experience
The experience of shopping at Costco doesn’t promote the feel of shopping grocery items. For example, no smaller packaging sizes, no express check-out type lanes, and you do not have the ability to shop on the fly in a typical grocery store.

7. Not the Best Price All the Time
Although many prices are good prices for bulk items, it can still be a lesser deal than another store for bulk type prices. Wise to check comparable prices on a unit price basis against local shops or online deals, as not everything under the roof is a deal.

8. Limited Access for some members
In some parts of the country, you may be a drivable distance from the nearest Costco so it may be harder to commit to shopping at any given time.

Conclusion

Costco constitutes good value for the average shopper who can leverage bulk pricing, availability of alternative services, and the value/quality of store brand products. The membership nature, larger packaging, and busy demographic may not be right for everyone based on your lifestyle.

By considering the positives and the negatives of Costco membership, you can ponder for yourself whether or not Costco meets your needs for you and your household activity and budget.