Costco shoppers know that Costco is the best store for buying in bulk. Not only do they have a wide range of products from patio furniture to prepared meals, but they also help you save every day. But they’re not the only wholesaler around.
This might make you wonder: What are wholesale clubs exactly and how does Costco differ from the others? For a full breakdown of wholesale clubs and the reason why Costco reigns superior, keep reading.
Related: Costco vs. Sam’s Club: Which Wholesaler Is Best?
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What Are Wholesale Clubs
So what are wholesale clubs exactly? Also known as warehouse clubs, these retailers usually sell a wide variety of merchandise that customers have the option to buy in large quantities. And in doing so, they can offer steep discounts per unit.
Wholesale clubs are great for large families that need to stock up on a lot of products but are also useful for business owners who want a discount on their everyday essentials.
How Are They Different From Warehouse Stores?
Warehouse stores are not the same as warehouse clubs. Warehouse stores are usually food and grocery retail stores that offer more intense discounts compared to traditional supermarkets, but only focus on food items.
Along with not having a variety of products, warehouse stores do not require a membership, like warehouse clubs, which require proof of membership before shopping. Examples of warehouse stores include Aldi, Woodman’s Markets, and WinCo Foods.
Other Wholesale Clubs
There are three main wholesale clubs: Costco, Sam’s Club, and BJ’s. Even though Costco and Sam’s are the leading competitors, with BJ’s being a smaller competitor, Costco, for many, is the true champion.
Comparing all three wholesale clubs is tricky, as each has their specialty. But we’ve done the research for both Sam’s Club and BJ’s to know that Costco always comes out on top. While Sam’s Club is more accessible and has convenient technology, there’s nothing like the high-quality products that Costco carries. And as for BJ’s, Costco is still cheaper and has a much better return policy.
Comparing Wholesale Club Prices
But now that you know what are wholesale clubs, you might be wondering about membership fee prices. Picking the best store usually relies on how much money you spend just to get in, so let’s break down the price differences.
Compared to Sam’s Club, Costco is a bit more expensive. Costco has three main memberships: Gold Star, Business, and Executive. The Gold Star and Business costs $60 annually while the Executive costs $120, albeit with more saving perks.
Sam’s Club only has two memberships: Club and Plus. The Club costs $50 annually and Plus costs $110, so only ten dollars cheaper than Costco.
BJ’s only has two memberships as well: Club Card Membership and Club+ Card Membership. The Club Card costs $55 annually and Club+ costs $110, so almost the same as Sam’s Club.
Even though Costco costs a bit more, that shouldn’t deter you from the wholesale club, as Costco proves more consistent savings than the other two. This leads us to the next question.
Check out: Here Are 10 Surprising Fun Facts About Costco
What Makes Costco Different?
Why do Costco members opt for a more expensive wholesale club? Costco is by far one of the top retailers around, and there are several reasons why. Instead of listing a dozen, let’s focus on the top main reasons that you should also consider a Costco membership over any of the other wholesale clubs.
Better Quality
Overall, Costco has better quality products. Their produce is fresher, they have an amazing selection of organic products, and even their baked goods are highly revered by customers everywhere. They also have a great selection of dietary preferences and restrictions from gluten-free to vegan products.
Not only that, but their store brand, Kirkland Signature, is one of the top brands in the store. Kirkland Signature are name-brand products underneath Costco’s house brand so they have a say in how a product is being created so they can make sure it’s of the highest quality. Not only are you getting premium quality products, but you’re also buying it for a lot less.
Better Policies
Along with the overall better quality of products that you’re buying, Costco also has incredible policies. Costco allows returns and refunds for products and memberships as well. That’s right! If you feel dissatisfied with your Costco membership, you can go back and actually receive a complete refund. Or, if you just want to downgrade your membership from the Executive to Gold, you can receive a refund for the difference.
For products, Costco has a very flexible return policy that keeps Costco members happy. For most products, you can return your item at any point. There are only select items that are non-refundable including Shop Cards, tires, and batteries, as well as larger diamonds.
Better Employee Benefits
Knowing that you’re supporting a business that supports its employees is another key factor in wanting to shop at a specific place. As for Costco, members and employees both are taken care of.
While Costco employees don’t get a discount, they do have several other perks including great insurance plans, generous retirement plans, amazing salaries, and even shop time after hours.
More Than Just Warehouse Savings
It’s not just in-warehouse savings that you can earn. Customers also have a way of saving big bucks when using other services around Costco as well, like better prices at the pharmacy for prescriptions, cheaper services for car tires, and cheaper gas compared to any other gas station or wholesale club gas station. You can even book cheaper flights, hotels, and car rentals with Costco’s travel center.
Conclusion
Now that we’ve answered the burning question, “what are wholesale clubs?,” you can see why Costco is hard to beat. While Sam’s Club and BJ’s have their own specialties and perks, no one does it like Costco.
Members love Costco for its high quality and unique environment, with great finds every time they shop. While Costco might be a bit pricier in membership fees, it’s well worth it, as the savings you earn throughout the year more than pay you back.
Read more: Costco vs BJ’s: Which Wholesaler Is Best?