How warehouse clubs work
A warehouse club is still a retail store. But to shop there, you’ll need to become a member first. An annual membership fee typically costs from $60 to $120, which can usually be recouped in savings if you use the membership enough. But there are a few considerations to be aware of before joining.
Warehouse clubs typically offer everything from groceries to electronics to clothing. What sets them apart from traditional retail stores, however, is that they offer these items in bulk at discounted or wholesale pricing. They might also offer discounted services such as travel and insurance, and may have an on-site pharmacy, optical center and/or gas station.
The benefits? You can save on bulk purchases and gain access to deals and discounts. Some stores, like Costco, offer a money-back guarantee if you’re not satisfied with your membership.
The downside? A membership may not be worth it if you don’t shop there frequently enough to offset the savings. There are other issues, too: It can lead to impulse buying, which defeats the purpose of joining a club to save money.
Scammers are smarter than ever—are you protected?
The average American gets 2 scam calls and 3 scam texts every week. Think you can spot them? AI is making scams harder to detect, and in 2023 alone, Americans lost $12.5B to cybercrime. Don’t be next—learn how to protect yourself now!
Learn moreThings to keep an eye out for
A warehouse club membership isn’t a scam, but not every deal is really a deal. Buying in bulk, for example, isn’t always a bargain. And the selection of big-ticket items like electronics or appliances may be more limited than what you’d find at a specialist retailer.
Many products, from groceries to vitamins, have a shelf-life. So buying in bulk may not save you money if you can’t get through a super-size version of that product before it expires. If you can’t eat 24 oranges before they start to rot, you’re literally throwing those savings in the garbage.
Warehouse clubs are typically designed to get you to shop more and spend more. The layout can be confusing; usually the groceries are at the back — behind all the fun big-ticket items like flat-screen TVs. And free food sample stations tempt you to spend more time in the store.
Warehouse clubs may also employ tactics that lure you into making impulse buys with signage such as ‘limited quantities.’ Many marketers use this ploy, not only warehouse clubs, but it’s good to be aware of it. You don’t want to walk out with a giant flat-screen TV when you just came for groceries.
How to protect your finances
Before joining a club, consider whether you’ll go often enough to justify the membership fee. Do you have enough room to store these bulk items? For perishable items, will you be able to eat everything before it goes to waste? If you’re buying a big-ticket item, are you really getting a deal?
You may find better sale prices on electronics or appliances at retailers who specialize in those products, especially during Black Friday. It’s worth doing a price comparison of big-ticket items against other retailers, such as Walmart, Amazon and Best Buy.
If you do buy a big-ticket item from a warehouse club, be sure to understand the return and refund policy (some product categories may be exempt or have a limited return window).
If you have a membership, avoid shopping traps by making a shopping list before you go. It could be helpful to create a budget to prevent you from overspending. If you’re about to make an impulsive buy on a ‘deal’ — walk away, do the rest of your shopping and come back after you’ve had a moment to think about it.
This 2 minute move could knock $500/year off your car insurance in 2025
OfficialCarInsurance.com lets you compare quotes from trusted brands, such as Progressive, Allstate and GEICO to make sure you're getting the best deal.
You can switch to a more affordable auto insurance option in 2 minutes by providing some information about yourself and your vehicle and choosing from their tailor-made results. Find offers as low as $29 a month.
