Can a warehouse club membership cut your grocery bill? Money experts offer advice

Warehouse clubs can be worth it for competitively-priced necessities and gas - and often have perks that provide more ways to save money

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Rising costs for everyday items such as groceries are leading many Americans to reconsider how they shop for essentials.

Known for their competitive prices and bulk items, warehouse chains like Sam’s Club, Costco and BJ’s Wholesale Club could be an option for consumers wanting to save money on their grocery bills. Between gas prices that tend to be lower than non-club gas stations, cash-back programs for shoppers with upgraded memberships and competitive pricing on many bulk items, there are plenty of opportunities for saving money.

Knowing how you’ll save money, how a membership fits into your budget and financial goals, and whether or not a warehouse club is a good fit for you are important things to consider before becoming a member.

Membership costs

Memberships to the three big warehouse clubs range in price from $50 to $130 per year and typically come in basic and upgraded tiers:

• BJ’s: $60 for basic, $120 for upgraded
• Costco: $65 for basic, $130 for upgraded
• Sam’s Club: $50 for basic, $110 for upgraded.

Warehouse clubs like Costco require a yearly membership fee in exchange for access to a wide range of bulk items that cost less per unit than grocery stores (AP)

Upgraded tiers offer perks such as exclusive shopping hours, yearly cash back rewards and other perks. For example, BJ’s offers upgraded members 5 cents off every gallon at its gas stations.

When warehouse clubs might be worth it

Warehouse clubs can be worth it for many customers because they offer competitively priced necessities and gas, and often have perks that provide more ways to save money.

Deals on bulk necessities

Warehouse clubs sell everything from discounted clothes and gift cards to electronics and tools. However, Clay Cary, senior trends analyst at CouponFollow, said the bulk purchases are especially valuable to members.

“For items like paper towels, pasta or snacks, buying in bulk would be cheaper,” Cary told The Independent in an email. “If you were buying for a family or just trying to stretch your money, these items would add up quickly”.

The same applies to other items your household uses often and have long expiration dates, such as:

• Canned goods
• Butter
• Frozen fish or meat
• Cereal
• Baking supplies
• Cleaning products
• Diapers
• Vitamins
• Toilet paper
• Trash bags
• Household cleaners

Your actual savings will depend on the specific product and warehouse club, and you’ll need to calculate the per-unit cost since sizes and quantities vary.

Here’s an example of how store-brand ultra-soft toilet paper prices compare at a major grocery chain versus the three popular clubs:

Store	Product name	Price	Cost per square foot
Target	Up & Up Ultra Soft (24 rolls)	$26.49	3.3 cents
Costco	Kirkland Signature Ultra Soft (36 rolls)	$24.99	2.4 cents
Sam’s Club	Member’s Mark Ultra Premium (45 rolls)	$24.58	2 cents
BJ’s Wholesale Club	Berkley Jensen Ultra Soft (32 rolls)	$19.99	2.6 cents

Lower gas prices

Cheaper gas prices alone can make a warehouse club membership worth it — especially if you regularly drive long distances or have multiple cars, Axon Capital Management financial advisor Brady Lochte told The Independent by email.

Many everyday staples are cheaper at warehouse clubs than they are at grocery stores, including household cleaners, toilet paper and canned goods (AP)

“Warehouse club gas stations typically offer savings of 10 [to] 25 cents per gallon compared to nearby stations,” Lochte told The Independent in an email. “For someone filling up a 15-gallon tank weekly, that's roughly $1.50 [to] $3.75 per fill-up.”

Someone who fills up four times a month could save anywhere from $6 to $15 per month and $72 to $180 a year on gas.

Overlooked perks

While cheaper gas and household staples are obvious reasons to consider a warehouse club, your membership could also pay for itself thanks to these lesser-known perks:

• Eye care services: Getting an eye exam, glasses, or contact lenses at a warehouse club can offer substantial savings, especially if you’re uninsured. Many clubs have on-site vision centers, accept major insurance plans and offer special promotions, such as buy one, get one free glasses or contact lens rebates.
• Prescriptions: Anybody can fill prescriptions at Costco and Sam’s Club, but members often save more. Costco advertises up to 80% prescription savings, while Sam’s Club offers more than 600 generic medications for $10 or less.
• Tire services: Warehouse clubs stand out for competitive tire prices, free or cheap installation and road hazard warranties. They usually offer the best deals on a full set, which might include one tire for free or a significant discount (such as $70 to $150) on an eligible brand.
• Other discounted services: Warehouse clubs partner with several providers for everything from insurance policies and vacation packages to home services and car-buying programs. Since these are often high-dollar purchases, even a small discount, such as 10% to 15%, could quickly offset your membership fee.
• Generous return policies: Since major warehouse clubs offer longer-than-average return periods for most general merchandise. For example, you can return items at any time at Costco and Sam’s Club (with exceptions for certain items) and within one year at BJ’s. Their generous refund policies even extend to your membership, reducing the risk of joining.

Warehouse clubs often provide discounts on sets of tires and include affordable installation and road hazard warranties (Getty Images)

When warehouse clubs might not be worth it

While the potential savings make a strong case for a warehouse club membership, it’s not always worth it for everyone. Shopping at these clubs may be less practical for paycheck-to-paycheck individuals and households on tight budgets, according to Cary

“Spending $40 on a package of toilet paper can save you money in the long run, but it's hard when you only have $100 to get you through the week,” he said. “And let's face it; unless you're careful, you can easily blow your budget on things you don’t need with those large shopping carts.”

Even if affordability isn't an issue, you still need enough space to store items and use bulk perishables before they go bad. The latter is why Lochte said the value of warehouse clubs decreases when you’re shopping for a smaller household. Additionally, a vehicle is necessary for warehouse club memberships since bulk items take up so much space.

“Some singles and couples sign up for a membership warehouse thinking it will save them money, only to find themselves buying far more in bulk than they actually need just to try and justify the monthly fee,” he said.

How to decide whether to join

Before signing up, review your shopping habits to identify items that might save you the most, such as paper towels, diapers or gas. Compare the club’s prices with what you currently pay, then estimate your yearly savings after the annual membership fee.

Unless you’re joining solely for cheaper gas or services, make sure your budget can cover the upfront cost of bulk purchases. Also, ensure your planned purchases make sense for your household size and available space.

Finally, consider how far away your local warehouse club is and whether you’ll shop enough to justify the cost. If you’re mainly an online shopper, Sam’s Club and BJ’s offer free 24-hour guest online memberships you can try out, but your purchases may have a surcharge since you aren’t a full-time member.