4 Signs Sam’s Club Is Better for You Than Costco

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Sam’s Club could be a better warehouse club than Costco, depending on a few key factors. Find out what you need to know. 

Sam’s Club and Costco are both warehouse clubs known for offering great prices. Those looking to keep more money in their bank accounts by shopping at a warehouse club will likely want to choose between them, as paying two membership fees makes little sense when your goal is to spend less.

But how can you decide which warehouse club is right for you? Here are a few key signs that joining Sam’s Club may be a better bet.

1. You want to pay the lowest possible membership fee

Costco offers a Gold Star membership for $60 per year or an Executive membership for $120 per year. Sam’s Club offers a Club membership for $50 per year and a Plus membership for $110 annually.

The cost of the Costco membership, therefore, is a little bit more no matter which membership tier you choose. If you’re looking for the lowest upfront cost because you don’t want to put a big membership fee on your credit card, then join Sam’s Club instead of Costco.

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2. You’ll primarily be buying staples

If you’re hoping to do much of your basic grocery shopping at the warehouse store and you want to pay rock bottom prices for your basic staples, you may be better off shopping at Sam’s Club instead of Costco.

Things like ketchup, chicken breasts, tomato soup, and pancake mix are all cheaper at Sam’s Club than at Costco. While the difference is sometimes just a few cents on these products, that can add up when you’re doing your grocery shopping for an entire year and when Sam’s Club has better prices on many of the things you buy regularly.

3. You prefer Member’s Mark to Kirkland products

Sam’s Club sells Member’s Mark products as its house brand, while Costco sells Kirkland’s products. Some Member’s Mark items have devoted fans, including the spices, nuts, broth, and canned tomatoes. Of course, there are also people who love Kirkland products as well.

If you have a strong preference for one generic brand over the other, it may make sense to join the warehouse club that offers it. After all, you can’t buy Member’s Mark products unless you are a Sam’s Club member, and you don’t want to miss out on your favorite grocery or household essentials.

4. It’s more convenient for you to visit Sam’s Club

Sam’s Club has a few more stores than Costco does, with Sam’s Club having close to 600 locations across the U.S. compared to 584 for Costco. If you happen to be closer to a Sam’s Club, then you may decide it makes sense to opt for a membership there rather than Costco. After all, you don’t want to end up negating the savings that a warehouse club provides by spending a lot of extra money on gas.

If you choose the more convenient warehouse store, you’ll also be more likely to visit that club compared over other grocery stores or pharmacies that may be more expensive. This means you’ll be more likely to get your money’s worth out of your membership.

By considering all of these key issues, you can decide which of these warehouse stores is right for you. You may just find that Sam’s Club is the best option, or you may find that actually Costco could be the right choice for your household.

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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.Christy Bieber 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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