Does a Bulk Store Really Save you Money?

Buying bulk is usually going to be less expensive if you break the price down per unit. But, if you’re not able to finish everything you buy and end up throwing half of it away, you could spend a lot more than you would have by buying the standard size. There are a ton of things to keep in mind when shopping at a bulk store, so in this post, I’m going to share my thoughts on whether or not a bulk store can save you money.

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What I don't buy at Costco

Earlier this week, I told you all why I hate Costco

Yesterday, I shared with you some of the things that I do think are a good value to buy at Costco.

Today, I am going to share with you the things I don't buy at Costco.

Some of them might surprise you.

Samples

It's not hard to make a meal out of the samples at Costco if you time it just right.

Most people stop and try the sample.  If you are shopping with kids, your kids will often try the sample too. I've been amazed at some of the samples my kids have willingly tried.

Samples at Costco are like casinos.  

They aren't losing money on them.

Costco provides samples because people buy what they sample.

It's happened to the best of us.

I've even been coerced by my kids to buy an item that has been sampled because they promise they will eat it.  They usually don't.

Most of the samples that are offered are convenience processed foods. These items rarely make it through my front door.

So while it's nice to try them once in awhile, I usually skip on the sample item.

If I really like the item I will make note of the price, compare the item at my regular grocery store, and if it seems like a better deal and I am still craving that item on my next Costco trip, I will pick it up.

Remember, Costco makes its money on your impulsivity.

Milk 2 gallons for $4.93 I don't know what genius engineer decided to make square milk but whoever it was should be shot. I had a friend tell me that at her local Costco in the Midwest they offered lessons on how to pour milk from a Costco milk jug. Really???  If you need lessons, the design is all wrong. If I buy the milk from Costco, I would venture to guess on the conservative side that at least a quarter of the milk gets spilled while pouring.  While price per gallon it's comparative to our local grocery store, when you spill a good portion of it, it is no longer a good deal. Eggs 24 count for $2.98 Do a price comparison at your local grocery store.  This isn't a good deal for our family.
Electronics We rarely buy new electronics, but when we bought our first new TV (we have been married nearly 14 years!...who knew we could go that long without brand new electronics or even a flat screen?!), my husband did his homework.  He compared prices at Costco with those at other big box electronics stores and found the best deal on the highest quality TV in our price range to be had at Video Only. Cereal The cereal selection is minimal and it is often times twice the price of what you would pay for cereal at your grocery store, even without a coupon. Shampoo/Conditioner Price compare, the shampoo and conditioner costs twice as much at Costco as it does at your local drug store.
Health and Beauty items Do you really need a 6 month supply of toothpaste? Or a years supply of soap? And while you are at it, do you really want to spend twice as much on it, not to mention the cost of storing it in your home.
Paper Goods While toilet paper and paper towels are usually a staple in Costco carts, I did the math for you and found that buying these items at Costco is not a better deal.
Plates/Bowls For 12 years my husband and I had the same plates and bowls that we had gotten for a wedding present.  The plates were starting to get old and scratched, but overall were in good shape. However, I started getting the itch to buy new dinnerware. So when I saw some boxes of plates/bowls that I liked at Costco I bought them. They are the worst! Most of the dinnerware has ended chipped and broken and not lasting nearly as long as the plates we received for our wedding.
I don't know what they were made of, but they somehow seem so much more fragile than the dinnerware we had for over a decade.  Learn from our mistake.  Skip it! Remember, the best way to save money while shopping at a big box warehouse is to know your prices. Know what you spend on the items you regularly buy and quickly do the math to make sure you are getting a good deal, either at Costco or at your regular grocery store. What do you think? Did I miss anything? What would you add to the list of items not to buy?

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What I buy at Costco

Yesterday, I explained my love/hate relationship with Costco. Costco charges a $50 membership fee per year.  It takes discipline (and a little price comparison) to help you recoup your membership fee and save money while shopping at Costco. I can live without my Costco membership, but when I do find myself with membership card in hand, these are the things that I think are worth buying. Gas image **as a side note, on the times when I have let my membership lapse, my membership card has still remained active at the pump. The first place I stop at when I walk through the doors of Costco is to the produce section. Not all of the produce is a good deal.  During the summer, most of my produce comes from a local fruit and vegetable stand or from our local farmers market (it's cheaper, organic, and local), but during the other times of the year, when produce prices soar at your local grocery store, you can find some deals worth picking up. Hearts of Romaine 6 count for $2.99 (That's 50 cents per heart) Sweet Mini Peppers A 2 pound bag is $3.79 I use these peppers for everything from sandwiches, in our salads, as stir fry, or just as a snack. During the winter a whole yellow/red/orange pepper can set you back $1.50 at the grocery store.
Strawberries 4 pounds are $6.49 that calculates to about $1.60 per pound
Bananas A 3 pound bag costs $1.39 about $.46 a pound *these are almost always VERY green, so you have to plan ahead
D'Anjou Pears 6 pounds for $3.99 That's about $.67 a pound *I will often buy this bag and share it with a friend.  The problem with 6 pounds of unripe pears is that they usually become ripe all at the same time.  It's not a good deal if you are wasting half of the bag.
**Produce item prices can change by several dollars in the same week. I went back the same week that I took these pictures and found that the sweet peppers were now over $5 per bag and the pears were over $4 for 6 pounds.   Be aware of the prices!
AllerClear 10 mg of loratadine (compare to Claritin) The price on this allergy medicine continues to go up by several dollars each year. It comes as a year supply (365 tablets-1 per day), and with a coupon this year it cost me $9.99.  It's still a better deal than most other allergy medicines at the drug store, but it won't be for long.  I started buying it when it was only $4 per bottle...a much better deal! Quinoa 4 pounds for $9.79 Around $2.45 per pound Quinoa is a super food that our family eats as a substitute for rice.  In bulk at the grocery store I was paying around $4.50 a pound for it.  Thankfully, Costco carries it for almost half the price.   *Not everyone loves Quinoa though.  It's best to try it before you buy it and get stuck with 4 pounds of something your family won't eat. Baking Soda 13.5 pounds for $6.16 I know most people will tell you when they had babies, they bought diapers and wipes at Costco. When I had babies, I bought baking soda at Costco. I have no experience with the prices of diapers/wipes at Costco so I can't help you there,  but as a cloth diapering mom, I used baking soda in our dirty diaper bucket to help neutralize the odor and used vinegar in the pre-wash cycle when I washed them. **This was a purchase I only made as a cloth diapering mom.  Think about how you use baking soda.  Usually by the teaspoon.  It would take you years to get through a bag this size and by that time, it would expire...and yes, baking soda expires!
Hershey's Chocolate Syrup 7.8 pounds for $6.86 This is one of the "extras" that I buy at Costco, that I could easily cut out of my buying if I had to. I use a squirt of syrup in my protein shake.  The kids use it on top of bananas for a snack.  Mocha Frappe Freeze 2.424 pounds for $8.35 I am addicted to this blended coffee.  Have been for years. You can mix one scoop of mix with one scoop of protein powder when you make a protein shake (on days when I lift weights or am training for a race). Or for a treat, I mix 2 scoops with 8 ounces of milk and ice and blend it together. For me it tastes similar to a Starbucks Mocha Frappaccino but costs WAY less and has far fewer calories. Kirkland Shredded Mozzarella 5 pounds for $9.99 Around $2 per pound I only buy this cheese in bulk when I haven't found a sale at our local grocery store.   Over the years it's gone up in price, but it still is a better deal than shredded cheese that isn't on sale. I will bring this home and put it in separate smaller ziploc bags and freeze each bag. Frozen peas/corn 5 pounds for $5.59/$5.89 I can find a better deal on frozen vegetables at our local grocery store, but the flavor of these outweighs the better price of the grocery off brand.  It's worth the extra 50 cents for our family, and each bag usually lasts several months.
Kirkland Hamburger Patties 24 count for $17.79 Around $.75 per burger  I know I could probably make my own hamburger patties for less, but I don't buy many convenience or prepared foods, so for a quick meal that is always on hand, that my whole family will eat, it's worth it for me. I also always buy the 10 pound bag of chicken breasts at Costco. It ends up costing around $2 per pound. I have tried several different brands of frozen chicken breasts and have always been less than impressed. Lysol Toilet Bowl Cleaner 4 pack for $6.93-$3 off coupon=$3.93 That's less than $1 per LARGE bottle *this was a case this month, when knowing how much you pay at other retailers comes in handy for knowing if you are getting a good deal at Costco, especially when shopping with their monthly coupons. Kirkland Signature Organic Extra Virgin Olive Oil I hear this Olive Oil is the best kept secret in the store. It's $9.99 for 1.5 liters In recent studies at UC Davis, Kirkland Olive Oil was one of only five of the 19 brands that wasn't mixed with cheaper refined olive oil.  The other four were all high end brands that cost nearly five times what the Kirkland brand cost.  Make sure when you pick it up it's the organic brand. So, that's what you will usually find in my cart. I try to steer clear of the front and middle aisles for fear of getting sucked into what I think *might* be a good deal.  All of these items can be found on the far left side of my store.   It's easy to impulse buy at Costco but when I know my numbers and know what is a better deal at Costco than at other grocery/drug stores, then I can feel confident in knowing that I am saving my family money. Stay tuned tomorrow for the things I don't buy at Costco. The list might surprise you! ps-in case you missed it, I did a series on What Not To Buy at The Dollar Store. You can read it here

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Why I hate Costco

Let me start by saying that I have a love/hate relationship with Costco.

But most of the time it's hate.

I have had a Costco membership on and off for the past 12 years.

I stepped into the store for the first time just weeks after moving to the Pacific Northwest.

I've had Costco membership cards gifted to me, I've been put on friends employee family cards, and I have bought into buying the $50 membership card myself.

When I don't have a membership I rarely miss shopping there.

When my membership has lapsed, my friends who find out gasp and often wonder how one can exist in this life without a Costco membership.

By today's standards, we have a large family.

A family of five.

And yet I rarely see the need for buying everything (or anything) in bulk.

Let me start by explaining why I HATE Costco.

Costco is very deceptive and often times makes you *think* you are getting a good deal, when in reality, you are loading up on very expensive impulse buys.

*I recently saw a mom appeasing her toddler son by buying him gum.  Not just one pack of gum, but a case of gum.  At any other store it would have cost her around $1, at Costco, it cost her $10.

*It happens to the best of us, we walk into Costco with a list and come out with a cart full of things that weren't on our list.

Costco typically only carries one item and one brand.  This doesn't offer you the option of comparing prices and making sure you get the best deal while you are shopping the aisles. 

You have to come to Costco knowing what you pay at other stores to make sure you are getting a better deal in bulk.

*How do you know if you are getting the best price on peanut butter (or any other item) if you don't have anything to compare it to?

This week, Costco had two different brands of peanut butter, Adams and Skippy.  The Adams natural came in an 80 oz tub for $9.99.  The Skippy came in 2-48 oz containers for $10.99.  If you ask a kid who eats peanut butter, the two brands don't compare in taste (that hydrogenated oil in Skippy sure helps the flavor!).  

I went to my local grocery store to compare the prices there with the bulk prices at Costco and found that you can't even buy that size anywhere but at a bulk foods store.  But as you stand in the aisle you aren't caring about what the price is at your local Safeway, you are caring about the time you are saving by not having to go to the grocery store AND  to Costco.

Most people walk into Costco thinking that because they are buying in bulk they must be getting a good deal...but are you?

*If you ask most Costco shoppers about what staples they typically buy at Costco, toilet paper is probably top on the list.

I thought I would do the math for you and see if toilet paper really is a better deal at Costco than at your local store.

For 30 jumbo rolls of Quilted Northern toilet paper, it will cost you $19.99 at Costco.

For each roll, you are paying around $.67 a roll

I compared the same brand at Winco.

Remember you can't buy the same quantity sizes at "normal" stores, so I calculated price per roll.

At Winco, you can buy 24 double rolls of Quilted Northern for $13.47

For each roll (of the same brand of toilet paper), you are paying $.56.

That's nearly 10 cents less per roll.

Another staple Costco shoppers say they pick up are paper towels.

Costco carries the Brawny brand so lets compare the prices.

At Costco you will find 15 mega rolls for $19.99

If you do the math, this equals around $1.33 per roll

At Winco. I found 8 mega rolls of Brawny paper towels for $6.97

Each roll at Winco ends up costing you around $.87

a difference of almost 50 cents per roll

**as a side note, Costco does occasionally have coupons on these staple items, but in my experience, it's not nearly as much or as often as you will find at your local grocery store.  Which brings me to my next point.

Most people get into the habit of having a running list of items they buy at Costco with no regard to the price that they are paying for the items they are buying.

*You know the people.  "I always buy toothpaste at Costco."

Do the math.

Is $2.60 per tube of Crest toothpaste the best deal out there?

Is it really cheaper to pay $2.70 per stick of deodorant?

I am a bargain shopper but I know that most people without coupons can pay less for most items at their local drug or grocery store.

And as an added bonus you don't have to store a years supply of toothpaste or toilet paper!

An article in Family Circle written by Scott Alexander puts it best, "Finding yourself in a situation where saving money is dependent upon spending can severely impair judgment."

Seasonal items at Costco can make you feel the need to impulse buy.

This month the focus at our Costco is on gardening.

You can find buckets of Preen and huge bags of planting soil

and rows and rows of plants.

I found myself lingering in this area at Costco much longer than I needed to because of the sheer draw of peer pressure.

This area, on a weekday I might add, had attracted more than a handful of people stopping and browsing.

I felt like if I didn't stop and browse and ultimately buy, then I was missing out on a deal (I wasn't).

Most experts will tell you that our buying decisions aren't based on logic, they are based on emotion.

Some people specifically buy a Costco membership just for the "deals" they find on electronics.

Costco is such a mega retailer that they can cut deals with other retail manufacturers.

Costco has made these deals with other manufacturers so that now you can't compare prices on an exact electronic item because Costco electronics are typically exclusive to Costco.

There is a perception that Costco prices are low, and most people want to assume that.  Many normally educated consumers don't even double check on prices before they buy, even on big ticket items like electronics.  Costco typically has comparable prices on electronics, but most people think they are getting an amazing deal, when the reality is usually it's just an average deal.

For the complete list of what I do think is a good deal at Costco check here.
For the "deals" I think you should NOT buy at Costco check here

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