Get the Most From Your Warehouse Club Membership

Written By Jeff Hindenach
Last updated January 27, 2021

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Money Saving Tips
September 1, 2015

Simple. Thrifty. Living.

Part of the appeal of warehouse clubs is that by paying $50 to $110 a year, you get deals on everything. But are you really making the most of those offerings? Joining a warehouse club such as Sam’s Club or Costco can save you money, but only if you maximize your membership. Here are a few ways to get the most from being a warehouse club member.

Clubs offer discount prices on lots of items, but they’ll also price some products higher. For example, food and batteries can cost half as much as what you’d pay at a regular grocery store, but appliances and some electronics can cost as much as 20 percent more. The bottom line: Don’t assume everything at your warehouse club will be cheaper. Do your research, shop around and figure out exactly what you should buy there.

With all the tangible goods warehouse clubs offer, it’s easy to forget about the other, intangible savings you can find. Whether you need a break on movie tickets, car rentals, eye care, banking or travel, your warehouse club probably has a deal for you.

Top-level memberships cost more than $100 but get you money back on most of your purchases. In general, you need to spend about $2,600 at a warehouse club yearly to break even after paying that membership cost. If you’re single, you can find a friend or relative to split the cost with, but decide how you’ll divide the rebates.

Toothpaste, deodorant and laundry detergent last seemingly forever. Not so for fresh fruit, cheese and the like. If you’re buying bulk food only to end up tossing a lot of it when it spoils, you’re better off saving your money and buying at a regular grocery store.

Impulse buys can be killer. It’s hard to say no when you see glittering TV screens and iPads, even if you’re at the club only for groceries. If you really want something, write down what it is and its price. Put the note somewhere visible. If you still want it 30 days later, then, and only then, should you seriously consider it.

The savings that a warehouse club brings you unravel if you have to drive 45 miles every week to get there, especially when gas prices are so high. Opt instead for a store closer to you.

About the Author

Jeff Hindenach

Jeff Hindenach is the co-founder of Simple. Thrifty. Living. He graduated from Bowling Green State University with a Bachelor's Degree in Journalism. He has a long history of financial journalism, with a background writing for newspapers such as the San Jose Mercury News and San Francisco Examiner, as well as writing on personal finance for The Huffington Post, New York Times, Business Insider, CNBC, Newsday and The Street. He believes in giving readers the tools they need to get out of debt.

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