Which shopping membership gives you more bang for your bulk-buying buck?
When it comes to members-only bulk shopping, it’s hard to beat Costco and Sam’s Club. These two warehouse giants are basically the only game in town, and seem fairly identical in terms of price points, rewards, and overall shopping experience. So how does one decide where to cast their loyalty (and spend their membership fee)?
If you’ve ever found yourself in a conversation with a diehard Costco member, it feels like they must be putting something in that $1.50 hot dog water. I know people who will literally drive past a Sam’s Club on their way to shop at Costco. But is it really all that different? We took a careful look at the two warehouse clubs to help you make an informed decision about which membership will work best for you.
Which is cheaper, Sam’s Club or Costco?
For the privilege of even setting foot inside, both Costco and Sam’s Club want you to flash a membership card. Here’s how the fees for the two stores break down:
Costco:
- $60 for the basic “Gold Star” or “Business” memberships
- $120 for the “Executive” plan, which includes cash back rewards of 2% (up to $1,000)
Sam’s Club:
- $45 for the basic “Club” membership
- $100 for the “Plus” plan, which also includes cash back rewards of 2% on qualifying purchases (up to $500 annually). Sam’s also offers early shopping hours and free shipping for Select Plus members, which are nice perks. There are also a number of ways to shop at Sam’s Club without a membership, including a free 90-day trial membership.
While it is possible to shop at Costco or Sam’s Club without a membership, it’s the deals that come only with the member card that make wandering their airplane hanger-esque interiors worth the effort.
If you’re basing your decision solely on which membership is the cheapest: Sam’s Club is for you. If you’re interested in what might make Costco worth the extra $15–$20, keep reading.
Which offers a better product selection?
Costco’s membership is more expensive, but the store also has a reputation for offering higher quality products.
At Sam’s Club, the focus is on quantity (allowing you to buy lots of the name-brand items you already know and perhaps love) over quality (offering items you can’t get anywhere else), while anecdotally, Costco seems to retain a loyal following thanks to its Kirkland Signature brand of products.
The difference in branding can be attributed to the fact that Costco is owned by Costco Wholesale Corporation; Sam’s Club is owned by Walmart. (Sam’s Club also has a signature brand, Member’s Mark, I can’t find any evidence that it has the same loyalty that Kirkland has garnered).
In addition to groceries, both stores offer major deals on everything from car tires, to flu shots, to eyeglasses, to trips to Disney World. Considering their extremely similar business models and customer reputations, it makes sense that neither store significantly steals the show in terms of these other offerings.
As far as costs per individual item, choosing between the two stores comes down to a matter of pennies. I briefly played around with a few product comparisons online and failed to find any one area where one store offered a notably better deal. For instance, here’s a glimpse of my hard-hitting investigation into the cost of Nature Valley Sweet and Salty Peanut bars:
- Sam’s Club (36 count): $10.68 (around $0.30 per bar)
- Costco (48 count): $12.79 (around $0.27 per bar)
I may be overstepping here, but I’d describe the difference in groceries like this: If Sam’s Club is like a McDonald’s (affordable, indulgent) then Costco is like a Subway (vaguely fancier, more nutritious). Either option is reliable, and you know you’ll get a decent deal.
Which has a better food court?
Costco’s $1.50 hot dogs are iconic and, as far as I know, Sam’s Club’s food court can’t hope to compete with the hot dog fervor they inspire. Feel free to take me out on a food court date and prove me wrong, but the consensus online gives this one to Costco yet again.
Which offers better branded credit card perks?
Both stores offer their own credit cards that double as member ID. You can explore the full advantages of the Costco Anywhere Visa here and Sam’s Club MasterCard here. Again, both clubs look identical, offering cashback deals on dining, travel, and even gas. However, Costco’s card wins us over due to the 2% cashback deal available even on their Gold Star plan; on Sam’s Club equivalent tier, you get only 1% cashback—although that deal jumps to 3% if you opt for the more expensive “Plus” plan.
Sam’s Club: Unique perks
While most of the benefits that come with membership can be found at either store, Costco tends to receive better reviews for offering higher quality all around. But in the name of objectivity, here are some key perks that might sway you toward Sam’s Club:
- An extra three hours in the store every morning, exclusively for Sam’s Club Plus members.
- Curbside pickup. Costco lets you order online and pick up at the store, but Sam’s Club will have your order brought directly to your car, provided your a Plus members.
- Ability to redeem your cashback rewards each month instead of annually.
Costco: Better for employees
The hourly wage for Costco starts 50% higher than at Sam’s Club, at between $15–$21, while Sam’s Club is around $10 to $19. And whereas Costco employees report generally favorable reviews of the company, Sam’s Club is a subsidiary of WalMart. Enough said. It’s difficult to fully compare the benefits of each store and their treatment of their employees, but if you’re curious about which company has a better reputation for caring for workers, Costco is where you should shop.
Locations
In the united States, Costco has 572 stores versus Sam’s Club has 600, so there’s a good chance you have at least one of the two near you. Given how closely they compare otherwise, it’s a safe bet to choose whichever club is most conveniently located, rather than committing to wasting gas driving past one warehouse to reach the other. (Don’t forget to take advantage of your member-only gas prices when you refill your tank at your warehouse of choice.)
Our final call
It seems like every blogger before me I have come to the same conclusion: Something about the overall Costco experience makes it worth the slightly higher membership fees. And for me, the knowledge Costco seems to treat its workers better also helps tip the scale. Even if I have yet to drink the proverbial hot dog water.