I went into Sam's on a Friday afternoon and Costco on a Saturday morning.
Before we get started a brief history on the two companies.
The first Sam’s Club opened its doors in Midwest City, Oklahoma on April 7, 1983. Today, Sam’s Club operates 609 locations nationwide. Typical clubs are about 132,000 square feet and employ about 175 associates. Sam's Club has more than 100 international Sam’s Clubs in Brazil, China, Mexico and Puerto Rico.
Costco opened its first warehouse in Seattle, Washington, on September 15, 1983. In 1993, Costco merged with Price Club (called Club Price in the Canadian province of Quebec). Prior to the 1993 Price merger, Wal-Mart founder Sam Walton wanted to merge Sam's Club with Price Club Costco's business model and size were similar to those of Price Club, which was founded by Sol and Robert Price in 1976 in San Diego, California. In 1997, the company changed its name to Costco Wholesale and all Price Club locations were re-branded Costco. In the United States, the main competitors operating membership warehouses are Sam's Club and BJ's Wholesale Club.[12] Although Sam's Club has more warehouses than Costco, Costco has higher total sales volume. Costco employs about 142,000 full and part-time employees, including seasonal workers. As of September 2009 Costco had 55 million members
I should also note here that I own 1.7065 shares of WalMart stock and none of Costco.
The first thing I did was visit both companies websites to find out how much membership at each club was. Sam's Club has what they call an Advantage member ($40) for those who don't own a business while Costco calls this the Gold Star Membership ($50). While Sam's offers business memberships for $35 Costco is again $50. Costco also has an "Executive" membership for $100 in which you get back 2% of your purchases as a rebate check at the end of the year. According to them most members get back enough to basically make their membership free. However, if you only get say $20 back take the check to the club and cash it there and they will make it $50. So that you really aren't paying that extra $50 over the regular membership.
Membership | ||
Sam's Club $40.00 | National Grocery Chain --- | Costco $50.00 |
| Sam's Club advantage $10.00 | ||
So as for membership so that you can get your foot in the door, Sam's wins by $10.
As I began this research I also looked at Consumer Reports.
Despite the clout of Wal-Mart, Sam’s Club’s parent, as the largest retailer on the planet, readers gave higher overall scores to Costco for groceries (better perishables), electronics and small appliances (lower prices), and eyeglasses (better service).
- Consumer Reports
Consumer Reports also reported that Consumers who shop warehouse clubs and also visited their website reported spending more then they intended. Since this is a problem for most shoppers no matter where they shop my suggestion would be to make a list and stick to it. Do not let the idea of saving money convince you that can buy more. Instead shop smart and save the savings for the future.
Costco tends to be located in more affluent neighborhoods and offers more higher end good then does Sam's Club. So it boils down to the same complaint that many has against Walmart selling cheap lower quality goods. Both companies offers store brands - Costco offers 330 Kirkland Signature items while Sam’s Club’s Members Mark line offers 400 items.
So now what about those prices? Lets take a look at some select items from each store. I printed a one-day pass for Sam's Club that I found on their website. Costco which doesn't offer such a thing but allowed me to enter and look around to decide if I wanted to join. One thing in my comparison I looked at original prices and not sale prices. The idea is I wanted to know what I would pay from week to week for these items. Not just while it was on sale. I wanted the most accurate comparison I could get. One last note before we begin. I also compared the warehouse prices to a national grocery store chain's everyday (non-sale) prices to see if it was really worth paying the annual membership fee.
When I entered the grocery store they only had one brand of food processor; which surprised me. I really didn't expect the grocery store to have that but was glad they did. That brand was a Cuisinart.
Sam's had a didn't have a Cuisinart food processor instead they had some brand called Ninja. The Ninja Food Processor was $49.98. While Costco carried the same brand that the national grocery chain carried; Cuisinart. They weren't exactly the same model but they were much more comparable to each oth then was the Ninja at Sam's.
Food Processor | ||
Sam's Club $49.98 | A National Grocery Chain $149.99 | Costco $68.99 |
| Sam's Club's advantage $19.01 | ||
Based on price alone Sam's wins this one, but if you were to factor quality and features Costco would win.
The grocery store one 12 pack is $5.99 everyday. However, you almost never pay that price as it is almost always has some kind of sale price. Sam's didn't have any 12-packs. Instead they had 24-pack cases ($5.98) and 32-packs ($9.74). Costco on the other hand only carried 32-packs in the cans and then some multi-packs in 20 oz bottles and 2 litter botles (4-pk). Since we use cans that is what we are comparing across the board.
Coca-Cola | ||
Sam's Club $9.74 | A National Grocery Chain $5.99x3=$17.97 | Costco $6.65 |
| Costco's advantage $3.09 | ||
Costco was the clear winner when it comes to Coca-Cola products.
When it came to paper towels Sam's Members Mark brand was 12 double rolls for $15.98. When it comes to Costco though they had a similar size store brand paper towel which they sold for $14.99.
Paper Towels | ||
Sam's Club $15.98 | A National Grocery Chain $??? | Costco $14.99 |
| Costco's advantage $0.99 | ||
When it came to toilet paper Sam's didn't carry my wife's favorite brand (Cottenelle) so we looked at the Charmin which was $18.98 for 36-count triple size rolls. Costco had a similar package but was only a 30-pack.
Toilet Paper | ||
Sam's Club $18.98 (36-pack)(.53/each) | A National Grocery Chain $?? | Costco $19.45 (30-pack)(.65/each) |
| Sam's Club advantage $0.12 | ||
When it came to bananas I was surprised to find Sam's was the same price as the national grocery store chain. Sam's was $1.47 for 3 pounds while the grocery store was 49 cents per pound (aka .49 x 3 = $1.47). When I went to Costco they also were $1.47 for a 3 lb bundle. Making all three stores in this comparison the same price. However, a local Texas only chain of stores does sell bananas at 44 cents/lb. Therefore I will give this one to the grocery store.
Bananas | ||
Sam's Club $1.47/3-LBs | A National Grocery Chain $0.49/LB | Costco $1.47/3-LBs |
| Grocery Stores advantage $0.00 | ||
I did my best to compare 93% lean across the board but Sam's didn't have anything better then 90% lean. Like Sam's Club; Costco didn't hav3 the 93/7. However, I was able to find a bag in the freezer of 5 1-LB chubs (the same size as a roll of sausage) that was 91/9. Which is good, the less fat the better for my wife's low cholesterol diet.
Hamburger | ||
Sam's Club $2.98/LB (90/10) | A National Grocery Chain $5.19/LB (93/7) | Costco $3.20/LB |
| Sam's Club advantage $0.22 | ||
No mater which warehouse club you go to you have to buy approximately 5-lbs (or better) of hamburger.
When it came to veggies Sam's had different pack sizes for corn (8-pack) and green beans (12-pack). Then the peas was a different brand (Luesuer aka the most expensive brand) while the corn and green beans were Del Monte. They had no cream corn or carrots at Sams's. So for green beans Sam's figured out to be 67 cents per can while corn figured out to be 70 cents per can. Since peas were about 99 cents/can I didn't include them in my survey. For the purpose of my chart below I figured the 70 cents/can price. Costco to had different prices and pack sizes. However, they were more consistent. For example, Green Beans and Corn were both store brands and both came in 12-packs for the same retail. However Peas came in an 8-pack and was the S & W brand which was 5.39. Figuring it out per can the corn and beans were $0.58 each while the peas were $0.67 each. Like we did for Sam's we will take the more expensive price as the price for all three. We do this because something ringing up less then you expected is better then more. We all like getting more for our money.
Canned Vegetables | ||
Sam's Club $0.70 | A National Grocery Chain $0.99 | Costco $0.67 |
| Costco's advantage $0.03 | ||
Milk
Milk is a little tricky. At Sam's Club you can buy a single gallon however, at Costco you have to buy a box with 2 gallon jugs in them.2% Milk (gallon) | ||
Sam's Club $2.95 | A National Grocery Chain $3.14 | Costco $5.89($2.95/gallon) |
| Costco and Sam's Club tie $0.00 | Costco and Sam's Club tie $0.00 | |
Jelly Beans
One of the treats I absolutely love is jelly beans. Not the black licorice ones mind you, but all the other flavors. At the grocery store I went in they only had one size of a bag of jelly beans (the peg-hook size). Which was disappointing. Their everyday price is $1.79 but can usually be bought on an unadvertised special of 2/$3.00. At Sam's they had a 4-lb jug of gourmet jelly beans for $10.84. Which figures to be $2.71/lb. However, I don't need gourmet jelly beans so they really aren't comparable. Still they were both store brands so I am including them. When I got to Costco all they carried was the Jelly Belly. Like Sam's club they were in a 4-lb plastic jar.Jelly Beans | ||
Sam's Club $10.84/4-LBs ($2.71/lb) | A National Grocery Chain $1.79 (15 oz bag)X4=$7.16 | Costco $15.89 |
| Grocery Stores advantage #3.65 | ||
I know it's comparing apples to oranges when it comes to these Jelly beans, but I really don't need the gourmet candy that the two warehouse clubs were selling.
Potatoes
Potatoes (10 LB bag) | ||
Sam's Club $4.68 | A National Grocery Chain $3.29 | Costco $8.99/15-Lbs ($3/5/lb=$5.99 for 10-LBs) |
| Sam's Club advantage $1.31 | ||
Laundry Soap - Gain (170 oz)
Laundry Soap | ||
Sam's Club $15.98 | National Grocery Chain $??? | Costco $15.98 |
| Sam's Club and Cosco tie $0.00 | Sam's Club and Cosco tie $0.00 | |
Conclusion/Totals
As for comparing them to the grocery store it is possible to save money but it is imperative that you save at least $1 a week in order to get your money back that you shelled out in the membership fees (no mater which club you choose).
Totals | ||
Sam's Club $133.30 | A National Grocery Chain $188.22 | Costco $155.25 |
| Sam's Club advantage $21.95 | ||
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