One Big Thing Costco Does Better Than Sam’s Club

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Sam’s Club beats Costco on membership price. But read on to learn about one big advantage Costco has over Sam’s Club. [[{“value”:”

Joining a warehouse club can help you save money on groceries and household products. But you probably don’t need multiple memberships.

Depending on where you live, you may have access to both Costco and Sam’s Club. When it comes to the cost of a membership, Sam’s Club is the clear winner.

A regular membership at Sam’s Club normally costs $50 per year, while a Plus membership that gives you cash back on purchases is $110. Costco, on the other hand, charges $65 for its basic membership per year and $130 for an Executive membership, which, like the Plus membership at Sam’s Club, lets you earn cash back on purchases.

But even though Sam’s Club costs less to join, there’s one big advantage to choosing Costco you should know about.

It’s a matter of quality

Costco and Sam’s Club both have a signature brand you’ll find on various products throughout the store. At Costco, it’s Kirkland, and at Sam’s Club, it’s Member’s Mark.

Both brands have a good reputation. But Costco’s Kirkland brand is known for its extremely high quality. And Member’s Mark doesn’t necessarily have that same reputation.

You should also know that there’s one specific Kirkland product that wins out on quality: gasoline. Costco’s signature Kirkland gas is TOP TIER certified. It’s designed to lead to better performance and a clean engine.

You might save a similar amount of money on gas whether you fill your tank at Costco or Sam’s Club. But at Costco, your lower price per gallon might also provide more fuel efficiency.

Sam’s Club’s gas is not TOP TIER certified. And while that doesn’t mean it’s low in quality by any means, there’s a notable difference compared to Kirkland gas.

Costco also edges Sam’s Club out on returns

Costco and Sam’s Club are known for their flexible return policies. And both give you 90 days to return electronics and major appliances. But whereas Costco gives you 90 days to return cellphones, at Sam’s Club, you only get 14 days. That’s a pretty narrow window to try out an expensive device.

Incidentally, Costco and Sam’s Club do not allow you to return gift cards and event tickets. So it’s mostly the cellphone category where there’s a notable difference in the two stores’ return policies. And honestly, this alone is not a reason to choose Costco over Sam’s Club, since a cellphone isn’t exactly the sort of thing you’re buying every week.

However, the quality of the Kirkland brand could be a good reason to join Costco instead of Sam’s Club, despite the higher membership cost. You may find that you can get better value out of a Costco membership because of how great the Kirkland brand is and because of the savings involved.

But even that shouldn’t be the only thing that goes into your decision. You should also consider store location. If you have a Sam’s Club store that’s much closer to your home than Costco, or vice versa, that’s something that matters a lot. The easier it is to get to a warehouse club store, the more likely you are to go, which helps you get great value out of your membership. You’ll need to look at the big picture when making your decision.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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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