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