Why I'm holding on to my CostCo card
Filed under: Bargains, Budgets, Saving
My name's Jennie Phipps and I'm a shopper addicted to Costco. Costco isn't much to look at -- just cement everywhere. But the quality of the merchandise vs. the prices please me and I'm apparently not the only one. Geezeo survey reported by MainStreet.com, found that Costco shoppers spend an average of $268 per month, compared with $75.98 spent by BJ's shoppers and $168.82 shelled out by Sam's Club shoppers.
None of this surprises me. Costco makes it sensible to spend money.
Two months ago, I fed 125 people lunch at a day-long conference. The facility's favorite caterer wanted $1,250, plus $500 more for coffee, snacks and sodas. Publix market offered to do sandwiches and salads for $600 and I could buy coffee, packaged cookies and sodas, paper plates, etc., off the shelves for about $150 more.
My old friend Costco was the clear winner, selling ham, roast beef and turkey sandwich platters to serve 20 at $27 each. I also bought pre-packaged salad fixings and mountainous bags of potato chips, Starbucks' coffee, sodas, water, fresh-baked cookies and individually wrapped bittersweet chocolates, plus plates, cups and plastic ware. The staff packed it all in boxes for me. The total was less then $400. Who could resist?
My kids flew into town for Thanksgiving, and their Black Friday mission included shopping for ski clothes. I schlepped them to Costco where they found well-fitting and good-looking down jackets for $35, ski mittens for $10 and waterproof pants for $19. We also went to two sporting goods stores and neither sold anything that could compete price wise.
I've shopped at Costco's competitors, BJs and Sam's Club, and they have their strengths. BJs is smaller and sells items in smaller packages, which is better for small families. Sam's is ubiquitous. Wherever you go, there's a club.
A year ago, my son got married in Mexico on the beach near the Yucatan town of Tulum. The area didn't have reliable electrical power, but it did have a Sam's Club where we bought beer, wine and booze for the reception. It felt just like home. Same layout and most of the same merchandise at comparable prices.
For me, the persuasive difference is the way Costco manages its employees. They pay them fairly and offer good benefits even for part timers, so they stick around and are motivated to do their jobs well. The result is a well-oiled operation that moves shoppers through the checkout process quickly and keeps the merchandise well stocked and in the case of meat, bakery and produce, fresh and well packaged.
I just let my Sam's Club card expire because every time I go there, the checkout lines are long, the cashiers are unfamiliar with the pricing, and they are frequently impatient, sometimes downright surly.
I like to say I'm frugal; some people would say I'm cheap. But to me price isn't everything. If I walk out of the store annoyed more than once or twice, I won't be back.
Costco has long-time employees who recognize me and treat me like the good customer I am. When a product doesn't measure up, they take it back without question. When the checkout lines are long, they immediately open more lanes. When I complained that they weren't selling my favorite brand of stuffed olives anymore, an acceptable substitute brand appeared.
I don't own Costco stock, but maybe I should. As Geezeo says, "Don't expect a slowdown at Costco anytime soon."
Recent Posts
- Book review: 'Gimme Shelter' (7/05/2009)
- Little pink (collar) pills: Pharmacists top list of best-paying jobs for women (7/05/2009)
- Spoiled brat not happy with his 16th birthday present (7/04/2009)
- Penny-Pinching Picnics: Summer party tips that will save you money (7/04/2009)
- Live, from Walt Disney World, it's the Obamabot! (7/03/2009)

Reader Comments (Page 1 of 1)
12-01-2008 @ 9:48PM
Frugal, Too said...
I agree that Costco has excellent service and values, as well as plenty of stock. My only regret is that it's a bit of a long drive away. That's okay, nothing's perfect, and I'm happy to call myself a loyal member.
Reply
12-02-2008 @ 6:43PM
Tina said...
I too have decided to spend my dollars at Costco over Sams. I used to love Sams and will still visit once in a great while, but the lines are always crazy long and I can't count the number of times I've had my basket full and they begin scanning the baskets with only a few items in them so that those individuals only have to present their cards and move on through the checkout. Those of us with larger orders (who are also spending more in their establishment I might add) are left to continue standing in line and managing our own items out of the cart. Wouldn't you naturally want to assist those spending more dollars in your store? At Costco, you are never left to get everything out of your cart yourself and the workers almost insist that you don't. I am willing to pay more (but very rarely have to due to the excellent prices at Costco) for this level of customer care and service. Sams Club management needs to wise up.
Reply
12-04-2008 @ 1:10AM
Nalani said...
I also shop at Costco, I love the warranty they have on their items, I bought a huge tent went camping for about three months, zipper was giving me problems opening and closing it. When I got back to civilization I brought the tent back in a weather worn box that it came in and explained the problem I had with it. No questions asked they gave me a full refund back. From there it was up to me to buy another or walk away with my refund. I will leave that to everyones imagination. They do have a lot of good deals at Costco for sure. Quite content with Costco.
Reply
12-04-2008 @ 2:58AM
Sam's Slave said...
As a Sam's club employee, I agree with everything you said, whole-heartedly! After 2 years with Sam's, I still don't earn what Costco starts most of their employees at and the work environment sucks. They are more about the bottom line than they are about keeping their people happy. I know several Sam's employees who went to work for Costco and they say they're much happier and are getting paid what they're worth.
Reply
12-26-2008 @ 1:58PM
Erika said...
When visiting Mexico City and our family picked us up at the airport we drove passed Costco. Our family who lives in Mexico were unfamiliar with the store. Living in such busy city they never took the time to find out what Costco was all about. We had to prepare a family dinner and buy a gift for a baby shower. We asked them to drive us to Costco. What was so great about it, it was that our card was recognized in an other country. And as always we made a one stop to purchase everything we needed. Not only did we buy everything for our family dinner but we also bought a stroller and some extras for the baby. Now, most of our family memers are also Costco members.
Reply