I am a big fan of Costco.
It’s one of the brands I love.
We have shopped there for years, first in Michigan and now in Colorado.
Of all the stores where we shop, it’s probably my favorite.
That said, Costco does have its faults like any other store.
So I thought I’d post what I love and hate about Costco and let you chime in with your opinions as well.
Here goes…
What I Love About Costco
Here are some of the reasons Costco is a top choice for us:
- Returns policy: Costco’s return policy is well-known — they take almost anything back. Yes, there are restrictions (on electronics, I believe) but for the most part, returning things that don’t hold up, don’t taste good, etc. is easy as pie. This works to their advantage, of course. Not only do they earn great customer loyalty but it increases sales. I can’t tell you the number of times we wondered whether to buy something or not, then said, “Why not? If we don’t like it, Costco will take it back.” More often than not we end up keeping the item.
- Gas prices: Costco is a bit of a drive from our house, so we don’t make trips just for gas, but when we are there we fill up. Our local grocery store gas station is pretty competitive and Costco’s prices are generally 10-20 cents per gallon cheaper. That said, if we have store points we can often do better at the grocery station (we generally get enough points each month to reduce gas prices by 20-40 cents a gallon).
- Travel services: When we took our first cruise, we researched options and prices like we were planning the invasion of Normandy. The best price we found? At Costco. Plus they threw in a few freebies. We ended up taking a total of three cruises with them. Plus they ended up saving us $10k by allowing us to cancel a cruise after hurricane weather made the itinerary uncertain.
- Electronics guarantee and help: Two things are great when you purchase electronics at Costco. First, they extend the manufacturer’s warranty by two years. Then, if you pay with the Costco credit card, you get two MORE warranty years (not sure if this is a permanent policy or they just ran it as a promotion when I bought my computer). Second, you can call their tech help line with any questions you have in setting up your electronics. I’ve used this a couple times and it’s always been quick and helpful.
- Kirkland brand: Simply as good as (or often better than) national brands and at much cheaper prices.
- Phone options: My understanding is this — Costco offers the same prices/promotions for phones and service as the major carriers. BUT, Costco often runs promotions that throw in free Costco gift cards, thus reducing the prices way below what the carriers offer. When we got our phones, we each received $300 in Costco gift cards.
- Meat: Their meat is very good (consistently better than what’s at our grocery store) and at great prices. They will sometimes run killer deals on Prime steaks as well, which makes for a nice treat for our family.
- Rotisserie chicken: $4.99 for a whole chicken! That’s already cooked! How can you beat that? I recall talking to a grill salesman at Costco and he said how great it was to cook chicken on his grill. I asked why I would want to do that when I could buy one over there (I pointed) for $5 that was already cooked and took me no time or effort. He had no response. We usually get two meals out of a chicken. The first is the chicken itself. The second is chicken soup my wife makes out of what’s left over.
- Prices: Of course. Not always the lowest prices, but generally better than any other options on a per weight/use basis as long as you use it all. As you might have guessed, we only buy stuff we use all of. (If you don’t use it all, the cost per use goes up big-time.)
There’s more I love about Costco, but these are the highlights.
Besides, I wanted to leave some for you to add. 🙂
What I Hate About Costco
Of course it’s not all rainbows and butterflies. There are some things I don’t like about Costco, including…
- Samples: These are a double-edged sword. I do like them in general, but samples often result in extra purchases we may or may not need. In addition, some are pretty tempting for a guy like me who’s trying to eat well.
- Checkers: There are often too few at our Costco and the lines can get pretty long. As such, we avoid the really busy times like the plague.
- In and out items: They bring items in, I fall in love with them, and then “poof!”, they are gone. Ugh.
- Moving products around: I can’t imagine how much time they spend moving items from here to there, but just when you get used to the fact that an item is in one location, it’s moved all the way across the store for some reason.
- Stuff in the middle of the store: There’s a huge amount of merchandise (clothing, toys, household goods, etc.) in the center section of the store. Go in there at your own risk! It’s just a mass of merchandise that often seems like a mess.
These aren’t big issues for me, but they are nuisances.
So, that’s my list of the pros and cons of Costco. Anyone have anything to add? What did I miss?
Pro: Costco stock. My first triple digit return holding and its paid a big special dividend in late 2012 (accelerating 13’s), 2015, and 2017
Cons: I have to buy some of the clothing to be able to try it on. I return quite a bit
By far Costco has the best rental car deals. Also, several family members swear by their tire service. Unfortunately, they do not seem to carry my fancy run flat sports tires.
Totally!!
Pro- Seem to not only do a pretty good vetting of suppliers, but test market food items before putting them on the shelf
Con- have to agree that not having a change room has given me pause with buying certain clothing items
My wife returns 75%+ of the clothes she buys at Costco because it doesn’t fit but we don’t know that until we get home.
I wonder if that’s a strategy to get you back in the store…
Yeah, that probably does figure into their strategy.
Also, not having dressing rooms likely cuts down on additional costs such as building those facilities into their warehouse, extra staff to man the dressing rooms, and the potential for theft that dressing rooms can foster (all costs that they would then have to pass on to the consumer.)
Try it on in the restroom right after the purchase. Return and exchange if necessary on the spot.
I dont have a Costco near me, but i’ve noticed the Kirkland brand in Consumer reports as having some pretty good ratings. Also, if they are like BJ’s, sometimes you will find a few different items or food brands that you dont seem to find anywhere else. For me, I’m not sure the cost of membership is quite worth it. I dont need the large quantities and can usually find comparative prices amongst the other stores or online. But if you use it enough and its close by, plus the travel services and extra warranty it might be for some people. My local BJ’s sends out coupons for free 3 month trial memberships all the time. I sign up about once a year for fun and occasionally buy a few things.
Pros: I order my checkbooks from them, way cheaper than having them printed anywhere else.
Cons: If I buy something I like alot and want to buy the same thing again (a certain brand of sunglasses, sheet sets, down pillows) the same thing is never to be found. If you see something you might want, you can’t go home and think about it, it won’t be there when you go again. Can’t go on weekends, way too crowded. I always spend way more money than I intend to.
I’ve had checks done there as well.
You and I are the only two would probably do! LOL! I don’t think my kids even know how to write out a check.
I hate their packaging waste…ex plastic boxes for spinach and apples.
I TOTALLY agree!
Pros – as mentioned, rental car rates are the best I’ve seen. (ATL)
Cons – the store seems disorganized to me, especially when I’m trying to find a specific item.
– It’s difficult to find an employee to ask for assistance.
– Electronics not always cost competitive, at least at Christmas shopping season.
Suggestion:
A great addition would be for their mobile app to show you what-is-where in the store you re in. And maybe add that self-scan/self-checkout option that Sams Club app features.
That would be cool. The Lowe’s app is helpful that way.
I’m not sure they have things in the same spots in different stores though, so maintaining it could be a nightmare. Just with the two stores we have, things are quite different.
Love Costco but… many times things are considerably cheaper in the store versus online… Even when it’s marked down online!
Pro – I like the cash back feature. Just cashed a $1950.23 annual refund.
Con – They sell great vehicle batteries but do not install them.
Holy cow! Did you buy a house at Costco???? 😉
?
Oryou must have been feeding the whole town
We travel in retirement. First $50000 goes on a Delta credit card (to maintain Platinum status), and the balance of travel goes on the Costco card, thus the rebate.
I’m a Sam’s Club member and share some of the same gripes as you, particularly the periodic changing of the product placement. It drives me nuts that if I pop into the store for something I want and head right there it is no longer at its usual spot.
I know exactly why they do this, it forces customers to explore more aisles and keep them guessing. The hope is that it delays the customer in the store and thus may encounter an impulse purchase product.
The biggest thing as you mentioned is that you really need to consume the product entirely for bulk purchases to be cost effective. For those products with an expiration date it can be tricky for a smaller family like mine.
Now that I drive a Tesla I don’t take advantage of the gas savings like I used to (honestly sometimes it is still cheaper to get gas at a place like Krogers where they offer fuel rewards based on points spent). With some smart gift card shopping during times where they give 4x fuel rewards I have gotten gas prices down to 19 cents/gallon (and load up on all the fuel I can get (I believe its a 30 gallon limit).
Sams club also has a more expensive membership option which I choose as it comes with a lot more perks like cashback rewards charge card with 3% back on sams club purchases. The extra money more than makes up for the $95/yr membership cost.
agree on the ‘in-and-out’ of items. frequently fall in love with something and 6 mo later it is gone.
Noah is right about tires. I drive a 1ton pickup with expensive tires. the quotes from the local tire dealers was about $2,200 for a set aligned and installed. I bought the exact same set at COSTCO for about $1,300. Huge savings. car batteries same.
you have to avoid that place on Saturday….. what a zoo.
I forgot tires. I’ve purchased several sets there through the years.
I also use them for travel on occasion. I also go on line when I need to take my car or bike to the dealership and print out repair coupons.. Ie.. they have a few (Chevrolet, Yamaha, Hyundai) local dealerships listed that have 10-25% off repair coupons.
The downside is that I go into Costco to pick up their ice cream, and then come out with $100 worth of other crap I didn’t really need.
I know.
If I come out of there “only” spending $75 I consider it a win.
Re “if you pay with the [Citi] Costco credit card, you get two MORE warranty years…”, this is a standard benefit of many Citi cards and covers any product, not just electronics, and at any store, not just Costco. The card also offers a 4% rebate on gas purchased anywhere in the U.S., in addition to whatever cents-off promotion you are getting.
Yes. When we get gas points at Kroger, we still use the Costco card to get 4% off (unless Chase Freedom has 5% cash back that month on gas.)
The center section of Costco can be fun, like a flea market. I’ve gotten some goodies at good prices like ski helmets, Adidas shorts for the kids, socks, summer water toys for the kids, etc. I’m sure I’ve probably bought stuff I didn’t need so they got a nice racket going on. But like my trips to the blackjack table in Vegas, I keep it in check.
Hate the long checkout lines and difficult parking situation on weekends. I’d love to avoid peak periods but it’s usually not avoidable.
I love their eyeglasses!
I’ve never shopped in Costco or Sams Club. I balk at paying a store for the privilege to shop there. I shop at Smith’s and use their credit card, and get up to 3% back depending on which brands I buy, plus I get fuel points. Plus every quarter they send me a pack of coupons of, believe it or not, things that I buy regularly, not a bunch of stuff that they just happen to be promoting. They track my purchases and send coupons for those things. Some of the coupons are for free items, such as a $10 pack of paper towels, free. I have two Smiths stores near me, but no Costco or Sams Club on this side of town, so it’s a no-brainer for me.
We do both.
If it’s the Smith’s I think it is, they are owned by Kroger.
We have King Soopers, also owned by Kroger, so we get the same thing — app coupons, paper coupons, gas points (we buy gift cards when they are on bonus to rack up gas points), etc.
We shop at both KS and Costco. We walk to KS often and pick up a few things here and there. I am by there every day and in the store almost every other day. So we spend a lot there.
That said, you have to be a savvy shopper or their prices will kill you. Their normal (without a card) prices are terrible and I cringe when I see people buying a cart of groceries and have no card.
In addition, their meat is only competitive with Costco when it’s on a good sale and the quality is usually not anywhere near what it is at Costco.
I get the fact that it’s counter-intuitive to pay to shop at a place, but if you pay $50 and save hundreds versus buying anywhere else, isn’t it a good deal?
All valid points. As I give it more thought, I realize what a personal experience it is to go food shopping. My wife and I go to one of the Smith’s every day, it’s part of our routine. We rarely eat meat so that’s not an issue. It’s convenient to go to these stores nearby and pick a few items, instead of making a trip across town and loading up. I agree that their no-card prices are awful. But with a card, the prices are comparative when I check the weekly flyers in my mailbox. And over the years they have rearranged the aisles no more than once a year, so I know where everything is, blindfolded. I know the people at the checkout counters and they know me, so it’s a friendly shopping experience.
So true. Our store also keeps things in the same place so it’s easy to find what you are looking for. And the people are VERY friendly. I think Kroger instills that from the top.
One thing Costco has over a grocery store is non-food items. That’s where you can save big.
Some examples:
1. I bought a Traeger grill there for a couple hundred less than i could find it anywhere else.
2. The tires, as people have mentioned a couple times.
3. Phones. Contrary to a comment here, we found Costco had better prices/deals than others after Thanksgiving (this was in 2017) since they offered a $300 Costco gift card for each phone purchase.
4. Travel. We shopped all over the internet for our first cruise and Costco had the best price options we could find. Plus they back up their sales even when the cruise companies don’t want to: https://esimoney.com/costco-travel-saved-10k-vacation/
The moving-stuff-around thing is called “refreshing,” I think. It’s common at other retail stores besides Costco. It helps the store move merchandise better because putting things in different places naturally gives the products more attention than they otherwise would have gotten.
Doesn’t make it any less annoying 🙂 but there is a reason why they do it.
Most definitely. Some brands pay the stores to put their items at eye level, or at the ends of aisles. Item placement is a really big deal, and it’s closely managed. One thing you can be sure of, the milk will always be at the back of the store. Everybody needs it, and they make you go past everything else to get it.
Moving things around to different areas of the store is called a scavenger hunt. It’s done so you can impulse buy and spend more money.
Con, in Costco they don’t label their aisles so you have to do two or three to find the right place. Sams Club does label theirs.
This is specific to my Costco, but I hate the parking. I have seen more than a few in my area, besides the one closest to me, that have too tight parking and a poor layout. This means that getting in to the lot can mean waiting in a line that stretches far out on the main road on the weekends. Aside from that, though, we have saved a ton with them. We are nearly out of the diaper time, and that was a huge number while we were in it!
We have two Costcos and they are completely different.
One the parking is terrible and the place is always packed. i don’t know how they get 10,000 people to shop there on a Tuesday at 2 pm, but they do.
Thankfully, this is not the one closest to our house.
The other is pretty easy to get into and out of, decent parking, and if you go at the right time, it’s pretty peaceful.
I used to shop at Costco twenty years ago, but it works better for me to shop where I can buy smaller packages at a competitive price. I use Target, Trader Joe’s, Aldi, and Lidl. I also shop at Publix some when I want to go to the closest store and don’t want to get in heavy traffic.
As folks have mentioned, best rental car deals by far.
Great coffee!
Love plants, way cheap.
Gardening supplies in the spring.
If the in store price drops after you buy something, you can get the difference back. I once bought a tv that dropped a month later by $500. Got the difference back in cash.
Household services. Got counter tops installed in my kitchen by a Costco vendor.
Ohh, and fair pay and excellent benefits for their workers. That’s why you see the same people working at your local Costco, year after year.
I will start by saying Costco is my favorite retailer (by far) as the “treasure hunt” experience is real but hardly ever find a price (like for like item) cheaper else + their quality is always top notch. For me the biggest complaint is that they dont have an easy open to get furniture or large items (appliances/mattresses) delivered but that still hasn’t stopped us.
Another thing that only a few have mentioned is they are one of the few retailers (trader joes is another) that combine discounting with paying their employees a living wage with healthcare. As SpaceMan mentioned it is one of the reasons you see the same people there for years. It is the combination of doing the right things for employees and promising to only mark up items 14% regardless of what deal they negotiate + years of being a happy customer is a combination that can be beat (at least in my eyes by any retailer)
I outlined my families spending in the article below but we have consistent spent around ~10K a year so sure they see us as a good customer as well 🙂
Millionaire 73
https://esimoney.com/millionaire-interview-73/
My local Costco has a crazy long line for gas. Yes you can save a bit but you’ll have to wait 20 minutes and endure extra stress due to the traffic outside of the station. Also I don’t like that you have to buy everything in huge quantities. This may work for families but not for a couple without kids like us.
We live in Everett Washington just north of the original Costco store. We have 3 regular Costco stores and 1 business center store withing 15 minutes of us so we shop there often. I get 90% of my gas there and we use the travel service. We get a healthy refund from the Citi credit card and an additional 2% because we are executive members.
They move the merchandise on purpose, it is a marketing strategy. The goal is to have the customers look for their favorite products in the hope they will purchase additional items. Yes this can be frustrating but it must work.
If you shop there often you need to learn the price code, this can be found here among other sites https://uproxx.com/life/costco-prices-explained-guide/
If you like coffee, then buy the Kirkland house blend. It is roasted by Starbucks and you can buy a 2lb bag for $9.99. My wife and I have coffee everyday and at this price it is very cost effective.
Sometimes, it will even be on sale for the month.
I love Costco
What I would add among the things I hate is that sometimes they suddenly discountinue products (usually great one…) and after some months they appear again…
In regards to products seemingly disappearing…
• If a product’s price ends in .97 (like $18.97) at Costco, it’s on clearance sale.
• If a product’s price ends in .00 or .88, it’s a manager’s special — it’s been discounted, possibly only for a limited time, just in that location.
• If a Costco price tag features an asterisk, the product is not going to be restocked. If it’s something you want, you should scoop it up because Costco is not going to replenish the supply once the current inventory sells out. (You’ll find a lot of asterisks on the price tags of seasonal items.)
Great prices on prescription eyeglasses.
I love Costco. I agree with some of the previous comments on which you tend to buy a few things more than you need. Here’s my List:
Pros –
Groceries – quality is hard to beat.
Meat & seafood – Again, very good quality and hard to beat on prices.
Samples – love the samples … again makes you buy stuff you could do without
Booze & Wine – Great wine selection, and their private label is also respectable.
Return Policy – pretty much you can return anything if not satisfied except certain items like electronics, software, etc (Booze, you cannot return booze)
Price adjustments for things that go on sales within 30 days of purchase. (Just got back $75 on a desk.)
Cash back – This is our go-to credit card
Gas – 10 to 20 cents lower per gallon. Those savings help here in Kalifornia
My Costco is about a mile away from home, and it’s hardly crowded on the weekends. :o) I like this the best …
Cons –
Merchandise that usually sells thru is not re-ordered. So, if you see something you like, better buy it that day as it may not come back for a while.
Merch relocation – it’s a nuisance but we try to walk each aisle
If I’m going into Costco for just a few things I will not take a cart for two reasons. 1- it limits how much I will buy to how much I can carry. 2- it makes it more difficult to browse since my arms get tired holding my purchases!
I have shopped at costco and other ‘big-box’ retailers for small-wholesale quantities of groceries and other goods for several years. While it may sometimes come as surprise to the retailer, generally the business is appreciated. Except for Costo.
Their prices are often cheaper for comparable products (pro), unfortunately it winds up inflating our labour cost (con) to pay our employees to load and unload multiple small items individually (or re-purchase damaged items) because for some reason the checkers at the store in kelowna bc absolutely hate putting things in boxes. It’s like pulling teeth to get them to do so.
Also, even if I warn them on my way into the store… or call ahead … it invariably horrifies them for me to show up at the register with two helpers in tow and three carts full of items. I mean get over it… it’s no different than putting through the next several shoppers in your mile-long checkout line (except you only have to pay service charges on one POS-machine sale), costco.
In comparison, walmart handles the same scenario scenario cheerfully and professionally. At walmart, extra foods, superstore, etc. … even save-on … shoppers drug mart … they put on an extra bagger or two on that register for like a whole 15 minutes, chat me up, SMILE (lol i think one checker at the kelowna costco smiled at me once, i’m pretty sure), thank me for my business, and ask me if i want help to get it into my vehicle.
At Costco, the checkers greet me with a blank shocked expression, sulk, glare, mutter, ram the groceries into the boxes like they are stuffing a sausage, sneak half of them loose into the cart, put boxes of canned goods on top of bread, put packages of meat on edge, put whole pineapples on top of tomates, use those ridiculous 3-sided display boxes so it falls out in the parking lot… and generally seem to think my 1000.00 to 4000.00 worth of groceries is best transported loose in a heap in the box of my truck. wow. The boxes are a waste product for them for crying out loud.
If only they could find a way to accomodate a customer who wants to buy more than a single 15-pound bag of potato chips, I’d be a fan. People like me are among the few who can actually use goods in the package sizes that they offer.
What is the point of having a warehouse environment if you can’t handle warehouse quantities?
Lol ok, rant over.