Joining a big box store is a great way to save money on groceries, cleaning products, and a variety of other purchases throughout the year. But choosing the right big box store can be challenging.
If you’re registered with both Costco and Sam’s Club, you may be unsure which one to sign up with. Both stores are known for their low prices and wide range of benefits.
While you can make an argument for either store, know that there is one area where Sam’s Club has a clear advantage, and that’s something you should consider when making your decision.
Sam’s Club wins the award
In October 2022, Sam’s Club increased the cost of its basic membership from $45 per year to $50. At that time, the cost of an upgraded Plus membership increased from $100 to $110, and prices have remained stable at that level ever since.
But the 2022 price increase was the first of its kind for Sam’s Club in nine years. In contrast, Costco typically increases its fees every five years.
Admittedly, the last time Costco raised fees was just over seven years. In June 2017, the cost of a basic membership was raised from $55 to $60 per year, while the executive membership fee increased from $110 to $120 at that time.
As of September 1, a basic membership will cost $65 per year, while an executive membership will cost $130. Prior to June 2017, Costco increased membership fees in 2011 and 2006.
But overall, not only does Costco raise its fees more frequently than Sam’s Club, but starting September 1, the cost gap will be quite large. If you join Sam’s Club, you can save $15 on a basic membership or $20 on an upgraded membership that will put cash in your pocket. Those are no small amounts for budget-conscious households.
Costco may still make the most sense
It’s pretty clear that from a membership fee perspective, joining Sam’s Club makes the most sense. But your goal when signing up for wholesale club access should be to actually use it. That way, you can recoup your membership fee and save over the course of the year.
If you have a Costco store that’s much closer to where you live or much more convenient, then that alone is a good reason to say no to Sam’s Club. The easier it is to put your membership to good use, the more you can benefit from it.
Plus, you might just prefer some of the offerings at Costco over those at Sam’s Club. Maybe you love Costco’s bakery, but you’re either happy with it or not at Sam’s Club. Or maybe you happen to be able to check more items off your personal list when selecting produce at your local Costco than you can at Sam’s Club.
It’s OK to consider the cost of membership when deciding which wholesale club to join. But it shouldn’t be the only factor that goes into your decision.
If you know a Costco and a Sam’s Club that are equally accessible and have similar assortments, then by all means save your money and stick with Sam’s Club. But don’t be afraid to choose convenience over cost, as long as you can afford the extra $15 or $20.
