3 Signs You Should Have Joined Costco Instead of Sam’s Club

There’s a reason some people choose to join Sam’s Club instead of paying for Costco. It’s cheaper.

Right now, a basic (Gold Star) Costco membership costs $60 a year, but that price increases to $65 on September 1st. And an Executive Membership at Costco that comes with 2% cash back on purchases costs $120 today but will cost $130 next month.

At Sam’s Club, you’ll pay just $50 for a basic membership and $110 for a Plus membership that offers cash back. This means that in just a few weeks, there will be a $15 cost difference for the basic membership and a $20 cost difference for the upgrade membership.

So it’s easy to see why Sam’s Club might seem like your best bet. But here are three signs that a Costco membership might be better for you.

1. Costco is closer

The money you save by joining Sam’s Club over Costco for a lower price could easily be canceled out by the extra money in gas you have to spend to drive a longer distance. If Costco is closer to where you live than Sam’s Club, not only might you be spending extra to get to Sam’s, but you’re also getting in the way.

Remember, the best way to get great value out of a warehouse club membership is to shop there often. If you’re looking at a 10 minute drive to Costco vs. 30 at Sam’s Club, then Costco should be the obvious winner.

Both Costco and Sam’s Club stock a wide variety of items. But if you’ve found that Costco tends to check off more items on your personal shopping list, then it’s worth paying extra for the membership.

Remember, the difference of $15 or $20 in membership cost is what you pay for a full year of access. But if Costco stocks more of the items you need, you could save $20 on groceries each month at Costco versus just $10 at Sam’s Club. After 12 months, the Costco membership will end up providing a lot more financial benefits in this case.

3. Costco offers more store brand items than Sam’s Club

Both Costco and Sam’s Club have a store brand. Costco is a Kirkland Signature and Sam’s Club is a Mark Member.

But you’ll generally find a wider range of Kirkland items than Member’s Mark items. And that could lead to additional savings.

Costco specifically prices Kirkland products at least 20% lower than brand name counterparts. So when you buy something with the Kirkland label, you know you’re getting a good amount of savings.

You may also enjoy great savings with Mark Member. But if you have fewer product options there, you may not save as much.

There’s nothing wrong with going to Sam’s Club over Costco if it’s a better fit due to factors like location and hours. But don’t rush to choose Sam’s Club over Costco just for the lower membership fees. You may find that Costco helps you save more money despite the higher cost of membership.

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