3 Signs You Should Ditch Your Costco Membership and Join Sam’s Club Instead

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Costco is great. But read on for signs that Sam’s Club might be a better fit for you. 

Many people love shopping at Costco because it offers them an opportunity to save money on groceries and everyday purchases like cleaning supplies and paper products. But even if you’ve had a good experience with Costco in the past, you may want to consider joining Sam’s Club over Costco if these signs apply to you.

1. You have a Sam’s Club store that’s closer to where you live

Even if you don’t shop at a warehouse club store all that frequently, it’s important to find one that’s conveniently located to where you live. And if Sam’s Club fits that bill, then it may be the better warehouse club to join. Not only might that allow you to get over there more easily, but it might help you save money on gas getting back and forth.

2. Your local Sam’s Club has better prices

Both Costco and Sam’s Club are known for their low prices. But if you’ve been to both and have come to the realization that Sam’s Club prices tend to be more competitive in your area, then that may be a better store to shop at.

As an example, Costco sells a 12-count of Bounty paper towels for $25.99. That’s a price of $4.07 per 100 square feet of paper towel. Sam’s Club sells a 12-count of Bounty paper towels for $23.48, or $4.00 per 100 square feet of product.

Now clearly, the difference in price here isn’t huge. But it’s just one example. And it’s worth noting that these prices are the ones listed for Costco and Sam’s Club online as of this writing. Prices can be lower (or different) in stores, and they can also vary from store to store.

So all told, you may need to do some research and keep tabs on price changes. But if you find that Sam’s Club consistently offers better prices in your area, then switching stores makes sense.

3. You want to save money on a membership

A basic Costco membership costs $60 a year, while an Executive membership costs $120. The Executive membership allows you to score 2% back on all Costco purchases, including those made online.

On the other hand, a basic Sam’s Club membership only costs $50 a year, while an upgraded Plus membership costs $110. With a Plus membership, you’ll get 2% back on your Sam’s Club purchases similar to Costco’s Executive membership, only for a bit less money.

The difference in cost between a Costco membership and Sam’s Club membership isn’t all that significant. But if you find that both stores are equally convenient to get to and offer a comparable range of products and prices, then you might as well choose the one that costs less to join.

Costco is a great store and many fans love it. But if these signs apply to you, then it may be time to say goodbye to Costco and become a member of Sam’s Club instead. Doing so could be your more convenient and cost-effective choice.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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