Costco And Value
August 19, 2009 – 5:25 amI’ve been a long-time Sam’s Club member, and recently I also joined Costco to give it a try as well. These two club stores are operated very differently, and if one appeals to some people it may not appeal as well to others.
Costco if totally focused on value, and I love that about the company. They drive for the best prices, typically take only 10-14% profit on the items they sell, and they’re very picky when it comes to keeping products permenantly.
The downsides are that:
- Costco doesn’t keep many permanent items. Therefore if you find something you like one week you may not see it again for a while, or ever.
- Costco’s perception of value may be different than yours. For example, they may drive an incredible bargain with a manufacturer on organic pasta. Although it’s a great deal for “organic” pasta, it’s probably not a great bargin on just plain pasta. Therefore you need to really watch your price list and make sure you’re getting what you really need at a good price.
- Costco doesn’t carry nearly as many common food items as Sam’s does in my opinion. Therefore it’s harder to use Costco as a primary outlet for groceries, which is my main use for club stores.
- Costco tends to focus on a more upscale clientele, and therefore typically has more organic, “all natural” products. That’s fine for some people, but I’m not really scared of MSG and would rather have Costco focus on value for the rest of us, not just those that would otherwise be able to afford trips to Whole Foods.
- Costco has made major investments to increase their private label “Kirkland Signature” brand items. These items are of very high quality, and most Costco shopper (including me) trust Costco completely when it comes to these private label products. Although I haven’t tried them all myself, I’ve heard rave reviews of most of their products, including diapers, wipes, paper products, and detergents.
- Costco, in my opinion, has more of a cult following than Sam’s due to the value they offer and the loyalty of their customers.
- Based on my own purchases, Costco prices for comparable products are very very good based on my price list (which includes Sam’s and Walmart costs). Once again you can get fooled by organic and all-natural products, but if you’re buying Jif Peanut butter or Cheerios, you’re likely to get the lowest price at Costco.
Does anybody else love Costco?
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