3 Times It Doesn’t Pay to Do Your Shopping at Costco

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A trip to Costco doesn’t always make sense. 

It’s easy to see why so many people love Costco. Shopping there often results in a lower credit card tab than shopping elsewhere, especially if you have a larger family to feed.

Now, you may be inclined to push yourself to go to Costco to make sure you’re getting good value out of your membership, whether you’re paying $60 for a basic one or $120 for an executive one. But there are times when it actually doesn’t pay to do your shopping at Costco. Here are some examples.

1. You only need one or two items

If there’s a Costco five minutes down the road from your house, then it could pay to pop over for a couple of items, the same way you might pop into the supermarket to restock on milk and bread once you run out. But if your nearest Costco is 20 minutes away or further, then it may not make sense logistically or financially to go there for just one or two things. What you save on the cost of those items, you might spend on gas.

2. You’re trying a new product for the first time

Maybe there’s a new type of protein bar you’re excited to sample. Or maybe you’re trying to incorporate healthier snacks into the mix for your kids, so you’re experimenting with different crackers.

There’s nothing wrong with taking a chance on a new item. But you probably don’t want to do so in bulk.

If you buy a smaller box of crackers for $3.50 and your kids reject it, in a worst-case scenario, you’ll have thrown out $3.50. But if you buy the bulk pack at Costco for $12 and your kids hate it, well, then you’re out that much more money.

In fact, as a general rule, you really shouldn’t buy anything in bulk that you’ve never tried before. So if you’re taking a chance on a new product, you’re generally better off skipping Costco and getting it at your regular supermarket.

3. There are big sales at your local supermarket

It’s often the case that Costco has a better price on groceries than a regular supermarket — unless a given supermarket is running a huge sale. If that’s the case, it could pay to do your shopping at your neighborhood grocery store rather than at Costco.

For example, say you’re looking to buy a bulk pack of eight 16-ounce pasta boxes at Costco for $8. Generally speaking, that might be a better price than what your regular grocery store offers. But if your supermarket is running a special where 16-ounce pasta boxes are $0.79 this week, then that’s the better deal.

It’s always a good idea to look through your regular grocery store’s circular before heading to Costco. And if you don’t get it in your mailbox, you can generally access it online to compare prices.

Shopping at Costco can be a huge money-saver. But in some cases, it pays to skip the Costco visit and make your purchases elsewhere.

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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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