2009.07.23
Warehouse club shopping: Can you really save money?
Call it the thrill of a perceived deal. How many of you have walked into Sam's Club, Costco or some other large warehouse club and ended up at the check-out line with more than you ever expected to buy? We're all guilty of overspending when we shop for what we believe are very discounted items, especially sold in bulk.
But will you really eat all of those granola bars or the mega bags of frozen chicken tenders?
Check out this story about a study of consumer behavior and warehouse club shopping. It was conducted by Michael Norton, an assistant professor of business administration at Harvard Business School, and Leonard Lee, assistant professor at Columbia Business School.
They found that consumers purchased more at warehouse clubs, because they perceived that they were getting better deals.
It's easy to think that buying in bulk ultimately saves you money. But does it? What are your experiences with trying to spend smartly at a warehouse club (if you actually can stick to your list!)?
Also, here are some tips from Consumer Reports for shopping smart at a warehouse club:
1. Make a list and buy only what's on it.
2. Compare unit prices with your local grocery store's prices.
3. Split a large purchase with a friend.
4. Pay with cash. It's a reality check that may keep you from overspending.
5. Try unfamiliar products judiciously.
6. Learn how to spot super bargains, such as slow-moving merchandise that's been discounted.
When our son was in diapers and on formula we saved a ton by shopping at Sams. We definitely make a list when we go to Sams but sometimes the impulses get to you.
Also, we too are guilty though of buying the big box of individual bags of chips and only eating half of them. They are great for packing lunches but when you don't have a large family to pack for they usually go to waste.
Comment by Original Greg — July 23, 2009 @ 8:54 am
I have a Sam's Club membership because of one specific high-end grocery item, which is heavily discounted compared to regular grocery stores. Two or three bulk purchases of this item and I've paid for my membership.
It's true that I'll sometimes buy more than I need there, but I'm pretty good about making sure it's something I need and can use all of. I know the normal prices of items I use regularly, so if they show up in Sam's I can usually tell if it's a good deal or not. I try to avoid trying anything unfamiliar unless it's been recommended to me; in the past I've had freezers full of prepared food items that just didn't live up to expectations.
Comment by Mark — July 23, 2009 @ 9:13 am
Jenny, we used to shop at Sam's Club for some items, mostly non-food, because we thought the bulk buying was a money saver. However, when we broke it down, we found it really wasn't. We opted not to bother with food since it's just me and my wife, we'd throw out far too much if we bought food in large quantities. For non-food things like OTC meds, paper towels/toilet paper, office supplies, etc...we found that the savings were not like what we thought. We found that if we shopped smart and looked for specials and sales, we could usually get a better deal at Kroger or Food Lion with the discount cards on almost every item on a unit price basis. We also found that after factoring in the membership fees and the driving times/distances/gas to get there and back, we really weren't saving anything and probably spent more money than we could have. So, as a result, we did not renew our membership and have just comparison shopped in Fairlawn between Food Lion, Kroger, Wal-Mart, Family Dollar, and Dollar General (Radford) for the things we need. Big Lots (C'burg) actually has had some of the best prices on some basic staples, but DG and FD also do quite well on prices for some items. We also love the Dollar Tree in Blacksburg, because we find a lot of more expensive items from other stores there.
Comment by Other John — July 23, 2009 @ 9:19 am
My husband and I shop at Sam's about once a month for things we use regularly. There are some things that are not a good deal, and we tend to compare price per ounce/pound between Sam's and Target/Wal-Mart. We do find a good deal on some frozen vegetables (Bird's Eye Asian Mix is a favorite), yogurt, chicken, as well as diapers and wipes. Also they have good deals on personal care items we use a lot, like refills for my Schick shaver, which retail for $11 for 3 at Kroger, where Sam's has them $25 for a pack of 12. After our son was born, we bought a jug of hand sanitizer for his room for $6, and we're still using the same jug and he's a year old.
I think as long as you do your homework, you can find deals at Sam's. And just because it's a good deal, don't buy it if you're not going to use it. This is especially true of perishables!
Comment by Lori — July 23, 2009 @ 10:20 am
Jenny, I believe you're right on target here.
Often times the same company (WallyWorld) has the same item in a lesser size at a better cost per piece. Once upon a time buying a larger size always yielded a savings. Not so today.
I guess what bothers me the most about these "warehouse" companies is that you can't count on purchasing the same item on multiple visits. Laundry detergent @ Sam's keeps changing container size. Coffee is another item that is questionable. My most recent visit yielded two jars of instant coffee on the shelf. No other brands or sizes, and no decaf. Just two jars! And they were still there when I left.
Another point of interest is the "warehouses" often sell outdated merchandise. Some years ago I bought a treadmill from Sam's. When the digital readout stopped working after a few months, I called the manufacturer for direction. They told me that model had been out of production for almost 10 years. No parts = No service = bad value.
"4. Pay with cash. It's a reality check that may keep you from overspending."
Isn't this contrary to recent blog posts??? Credit / Debit cards? Only for those of us who understand "cash" is this statement realistic.
Comment by Steve — July 23, 2009 @ 11:51 am
I like the hot dogs with sourkraut. I put a little mustard on. The onions kick back a little bit.
Comment by jimmyb — July 23, 2009 @ 4:17 pm
I think jimmyb is right about the onions
Comment by johnnyquest — July 24, 2009 @ 8:14 am
I think you can save some money especially for a larger family like ours but the main reason we like to shop at Sam's is the quality. It seems like everything we have ever bought there is high quality. Obviously most items can be found elsewhere as well but if it came from Sam's it is usually good.
Comment by Bert — July 24, 2009 @ 4:01 pm
The main things we buy at Sam's club are meat and cereal. My daughter eats oatmeal by the crate, and on a per/pound basis the big boxes at Sam's are much cheaper than buying the small cans at the grocery stores. We also by the large pork roasts and packs of chicken, and half of it goes straight into freezer bags and then the freezer as soon as we get home. If you're smart about it, Sam's can be a really good deal.
Comment by Ed — July 25, 2009 @ 9:24 am
It used to be I could not go into a warehouse store unescorted. I would instruct my escort du jour in very clear terms to keep me to my list and don't let me buy anything else. I have lost a lot of friends because I ignored them when they tried to stop me from buying something on an impulse. Or else they gave up too easily and I chided them for being a wimp. Since I ran out of friends, I don't go into the warehouse stores anymore.
Comment by B.R.A.M. — July 25, 2009 @ 11:56 pm