This Is the Main Reason I’d Never Join Sam’s Club Over Costco — Even Though It’s Cheaper

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Sam’s Club has its benefits. But read on to see why this Costco fan has no plans to make a switch. 

Maintaining a warehouse club membership is something that absolutely makes sense for my family. As a gang of five, we go through our fair share of groceries. And being able to buy food in bulk allows for a lot of savings during the year.

In my area, I happen to have access to not one, but two Costco locations that are about 15 minutes away from my house. There’s also a Sam’s Club not much farther — about a 20-minute drive.

I’ve been tempted at times to sign up for Sam’s Club instead of Costco because a membership there is less expensive. A basic membership at Costco costs $60, while an Executive membership costs $120.

I have the Executive membership because it gives me cash back on my purchases — enough cash back to more than make up for the $60 upgrade and still leave me with extra money. By contrast, a basic membership at Sam’s Club only costs $50, while a Plus membership, which gives you cash back on your purchases, costs $110.

But even though Sam’s Club fees are cheaper than Costco’s, I intend to remain a loyal Costco member for the long haul. And the reason largely boils down to my love of the Costco bakery.

When you find products you really love

Both Costco and Sam’s Club offer great deals on pantry staples, household essentials, and an assortment of goods. But the main reason Costco remains my go-to source for bulk buying is that it sells many items in its bakery section that my family and I really enjoy.

Normally, my kids, husband, and I eat a fairly healthy breakfast. But on Saturday mornings, we share Costco muffins. It’s become a bit of a tradition in our house and it’s one we look forward to.

Costco’s giant-sized sheet cakes are also our preferred option for birthday parties, class parties, and other events where you need to feed a crowd. Not only are they affordable, but they’re actually quite tasty.

And let’s not forget Costco’s pumpkin cheesecake — a seasonal item I look forward to every fall. It may not be so good for my waistline, but it’s something I enjoy immensely.

It’s okay to spend a little more money to make yourself happy

I could easily justify a Costco membership over a Sam’s Club membership, despite the higher cost, by virtue of Costco being a bit closer to my home. But even if the drive was exactly the same, I’m at a point in my life where I have no guilt about spending an extra $10 a year to get access to a store that lets me buy the baked goods I love.

If money is extremely tight in your household right now, and you have equal access to both Costco and Sam’s Club, then it could make sense to go with the less expensive option. Plus, if you’re only looking for a basic membership, Sam’s Club commonly discounts those at various points during the year, whereas Costco rarely does. So in reality, you might save more than just $10 depending on when you sign up.

But if you’re doing okay financially and happen to have a preference for Costco like I do, don’t feel bad about it. There are many other steps you can take to make up the $10 extra you’re spending on Costco, like skipping one store-bought lunch a month, giving up a few Starbucks coffees, or simply making a point to buy groceries at sale prices.

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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 and Starbucks. The Motley Fool has a disclosure policy.

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