The warehouse club membership fee is only worth paying if the savings beat it, and the savings are surprisingly hard to see, because the pack sizes are different from the supermarket and the receipts do not line up. So we kept a year of receipts from both the club and the regular supermarket and compared the price per unit on everything we bought at both places. The membership won, but on far fewer items than the club would like you to believe.
What we compared
Every receipt for twelve months, both stores, entered in a spreadsheet by item and unit price: per ounce, per roll, per count. About 140 distinct items appeared at both stores at some point. We ignored anything that only one store sold.
Where the club won clearly
| Item | Club saving vs. supermarket | Annual saving for us |
|---|---|---|
| Gasoline | 15–25 cents a gallon | $180 |
| Tires (one set) | About 20% including installation | $140 |
| Paper towels and toilet paper | 25–30% | $70 |
| Ground coffee | 35% | $60 |
| Cheese blocks | 30% | $55 |
| Rotisserie chicken | 40% | $50 |
| Prescriptions (generic) | Varies, often large | $90 |
| Batteries, trash bags, detergent | 20–30% | $45 |
That is about $690 a year on the thirty or so items where the club is clearly cheaper, against a membership of $65. Gas and tires alone paid for the membership in the first two months.
Where it tied or lost
Most packaged groceries tied within a few percent once the supermarket's sales were included. Fresh produce lost: the club's quantities were more than we could eat before it spoiled, and thrown-away food is a 100 percent loss. Meat tied on price but the club's cuts were larger than we needed. Anything we tried for the first time at the club was a risk, because a bad 48-count is a lot of bad.
The hidden costs
- The wander. Our average club receipt was $210. The list had been $120. The difference was things that seemed like a good deal on the way to the checkout.
- Storage. A 30-roll pack needs a closet. We built a shelf in the garage; that is a real cost in space.
- Spoilage. The first year we threw out roughly $80 of produce and bakery items. That is a fifth of the saving gone.
The rules that make it work
One trip a month, with a list drawn from the thirty items on the winning table and nothing else. Fill the car at the club pump every time you pass. Never buy produce there unless a specific recipe will use it within four days. Do not walk down the electronics aisle. With those rules, the net saving for us is about $550 a year after the fee. Without them, the first year, it was closer to $150.
If you are deciding whether to join
Add up what you spend on gas, paper goods, coffee and any regular prescriptions. If that is more than $2,000 a year, the club almost certainly pays. If it is not, the club is a place to spend money on bulk items you did not need, and the supermarket's sales will serve you as well.
