# Explain Costco to me.

**URL:** <https://boards.straightdope.com/t/explain-costco-to-me/837894>\
**Category:** In My Humble Opinion\
**Created:** [July 30, 2019, 8:08pm UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894 "2019-07-30T20:08:24Z")\
**Posts on this page:** 20\
**Page:** 5

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**Author:** ![doreen](https://avatars.discourse-cdn.com/v4/letter/d/858c86/32.png) [@doreen](https://boards.straightdope.com/u/doreen)\
**Post date:** [July 31, 2019, 11:19pm UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/81 "2019-07-31T23:19:39Z")

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> [@Ethilrist](#):
>
> Man, if they’ve got enough inside jobs going to justify one or two FTE’s to check receipts at every store in the chain, it’s not working. Are they really losing that much money that this is worth doing?

They might be if they didn’t have receipt checkers - although to be fair, they are also checking for big,obvious mistakes. It can be really easy in those places for the cashier to forget to scan or miscount large items ( like cases of water) left on the cart rather than put on the conveyor belt.

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**Author:** ![doreen](https://avatars.discourse-cdn.com/v4/letter/d/858c86/32.png) [@doreen](https://boards.straightdope.com/u/doreen)\
**Post date:** [July 31, 2019, 11:21pm UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/82 "2019-07-31T23:21:00Z")

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> [@Ethilrist](#):
>
> Man, if they’ve got enough inside jobs going to justify one or two FTE’s to check receipts at every store in the chain, it’s not working. Are they really losing that much money that this is worth doing?

They might be if they didn’t have receipt checkers - although to be fair, they are also checking for big,obvious mistakes. It can be really easy in those places for the cashier to forget to scan or miscount large items ( like cases of water) left on the cart rather than put on the conveyor belt.

Which is why many stores other than warehouse stores have receipt checkers- Walmart and Target come to mind.

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**Author:** ![pulykamell](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pulykamell/32/3166_2.png) [@pulykamell](https://boards.straightdope.com/u/pulykamell)\
**Post date:** [July 31, 2019, 11:28pm UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/83 "2019-07-31T23:28:57Z")

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> [@doreen](#):
>
> They might be if they didn’t have receipt checkers - although to be fair, they are also checking for big,obvious mistakes. It can be really easy in those places for the cashier to forget to scan or miscount large items ( like cases of water) left on the cart rather than put on the conveyor belt.
> 
> Which is why many stores other than warehouse stores have receipt checkers- Walmart and Target come to mind.

Target? I’ve never seen one at Target. The big box home improvement stores usually have them, though.

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**Author:** ![doreen](https://avatars.discourse-cdn.com/v4/letter/d/858c86/32.png) [@doreen](https://boards.straightdope.com/u/doreen)\
**Post date:** [July 31, 2019, 11:43pm UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/84 "2019-07-31T23:43:31Z")

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> [@pulykamell](#):
>
> Target? I’ve never seen one at Target. The big box home improvement stores usually have them, though.

Yep, Target. I’m sure it varies by location.

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**Author:** ![lingyi](https://avatars.discourse-cdn.com/v4/letter/l/d2c977/32.png) [@lingyi](https://boards.straightdope.com/u/lingyi)\
**Post date:** [August 1, 2019, 1:54am UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/85 "2019-08-01T01:54:56Z")

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Deterrence - Another reason for receipt checkers. Make some people (not the serious, experienced shoplifters) from trying to walk out the store with something if they see someone at the exit door. Some stores also have security at the exits.

The OfficeMax I worked at had the largest amount of shoplifting in the district. Out of the three store managers, only one ever checked checked our bags and pockets (had to turn them inside out). What made it even more ridiculous was that the only time this happened was if you worked to store close and he was on duty. Any other shift and you could walk out without being stopped, unless he happened to see you. Also, since I worked in the print department, we usually didn’t have to wait until everyone else was done. Just make sure this manager wasn’t looking and walk out.

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**Author:** ![lingyi](https://avatars.discourse-cdn.com/v4/letter/l/d2c977/32.png) [@lingyi](https://boards.straightdope.com/u/lingyi)\
**Post date:** [August 1, 2019, 1:58am UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/86 "2019-08-01T01:58:10Z")

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> [@pulykamell](#):
>
> Target? I’ve never seen one at Target. The big box home improvement stores usually have them, though.

Depends on location. I’ve seen security guards at KMart and Longs Drugs (our CVS affiliate) at locations where there’s a high risk of theft. The Longs Drugs is directly across a Salvation Army and IHS.

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**Author:** ![Corry\_El](https://avatars.discourse-cdn.com/v4/letter/c/ecae2f/32.png) [@Corry\_El](https://boards.straightdope.com/u/Corry_El)\
**Post date:** [August 1, 2019, 2:35am UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/87 "2019-08-01T02:35:45Z")

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Originally Posted by lingyi View Post  
Non-members can shop at Costco, but they pay a 5% surcharge on their purchases. Or they can use a giftcard that a member has purchased for them.  
Do you have a cite for this?

> **[6 Ways You Can Shop at Costco Without a Membership](https://clark.com/shopping-retail/warehouse-clubs/costo-shop-without-membership/)**
>
> Still on the fence about Costco? You can still shop at the more than 500 locations without paying just to get in the door.

But the previous poster didn’t give it exactly correctly. You can’t show up personally at Costco and get complete access to the store unless you’re a member, or have a Costco Cash Card (their gift card) which only members can buy directly. See link for certain sections of the store you might get access to without either of those, sometimes depending on state law\*. The 5% surcharge is for shopping at [Costco.com](http://Costco.com) as a non-member. You don’t pay any more as a non-member at the store if you have a Cash Card, though you don’t get store coupon savings which are only for members.

As link points out, besides the obvious of having a friend who is a member buy you a Cash Card, you might be able to buy one from a gift card reseller, perhaps even at a slight discount to face value. However looking just now, neither Cardpool or Giftcardgranny have any.

Back to OP and some other posts, I always find it puzzling when people point to a merchant’s profit or where their profit comes from as if it’s relevant to a consumer, which it just isn’t. The only relevant factors are what quality of product (or service, but I positively prefer stores where I can just pick out my stuff and be left alone by store employees, nor do I care about pleasant chat at the check out counter) the store provides for what price compared to other stores. If you buy at least a fair amount of grocery items and especially if the many typically high quality non-grocery items at Costco fit your needs, Costco provides very good value at $60/yr+sales tax membership. If you buy more than that, as another poster mentioned, it becomes likely you’ll pay less than $60 net by getting the Executive Membership for $120/yr but 2% cashback (independent of the cash back you’re getting on your credit card). We pay less than $60 always, and sometimes close to nothing.

If your grocery shopping is some combination of small scale and/or you’re willing to shop around extensively for the best specials on each item in different stores, and it also helps if you don’t care much about quality for meat or produce; and if you prefer low quality, if it’s a low enough price, for non-food items in the wide range of common things Costco sells beside food (for example if the ‘cheapest possible crap’ standard typical at Walmart for non grocery items is more your thing), then Costco is not necessarily a good store for you.

\*one which the link is omits is Costco gas stations in NJ: NJ state law prohibits members only gas stations, anyone can use them, and cheapest around, but pretty long times usually at ours.

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**Author:** ![SmartAleq](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/smartaleq/32/163_2.png) [@SmartAleq](https://boards.straightdope.com/u/SmartAleq)\
**Post date:** [August 1, 2019, 2:56am UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/88 "2019-08-01T02:56:39Z")

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> [@Voyager](#):
>
> Bacon is not that much cheaper than the store, maybe a bit more expensive for good sales, but the quality is better.

I thought this too, then I noticed something–grocery store packages of bacon are 12 oz and Costco actually sells POUNDS so although it might seem about the same it’s actually considerably cheaper at Costco. Plus, as you point out, the quality is amazing.

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**Author:** ![lingyi](https://avatars.discourse-cdn.com/v4/letter/l/d2c977/32.png) [@lingyi](https://boards.straightdope.com/u/lingyi)\
**Post date:** [August 1, 2019, 3:45am UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/89 "2019-08-01T03:45:36Z")

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Apologies if this has been been posted before and not sure about NJ, but I’ve been told that either a Costco membership or Costco gift card is required to by Costco gas. Which bring us back to someone has to be a member to buy the gift card.

Also, AFAIK, they don’t actually check if your additional household member actually lives with you. How could they really? When I had my Sam’s Club membership I put my friend as my household addition with no problem.

Another thing, a big advantage to getting a Business membership is that you can buy things at the lower local tax rate (.005% versus .04712% in Hawaii). I’m not exactly sure how the backend of resale purchases work, but in general you better actually have proof that what you bought for resale was actually sold if you’re audited.

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**Author:** ![thelurkinghorror](https://avatars.discourse-cdn.com/v4/letter/t/7c8e57/32.png) [@thelurkinghorror](https://boards.straightdope.com/u/thelurkinghorror)\
**Post date:** [August 1, 2019, 3:53am UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/90 "2019-08-01T03:53:44Z")

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> [@SmartAleq](#):
>
> I thought this too, then I noticed something–grocery store packages of bacon are 12 oz and Costco actually sells POUNDS so although it might seem about the same it’s actually considerably cheaper at Costco. Plus, as you point out, the quality is amazing.

Every grocery store I’ve bought bacon in sells both 12 oz and 16 oz. I still can’t tell them apart without reading the label, but I make a point to check it every time.

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**Author:** ![SmartAleq](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/smartaleq/32/163_2.png) [@SmartAleq](https://boards.straightdope.com/u/SmartAleq)\
**Post date:** [August 1, 2019, 4:00am UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/91 "2019-08-01T04:00:10Z")

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Last time I checked the grocery store there were literally NO brands that had an honest pound, 12 oz was the usual and I’ve seen some down to 9 freaking ounces. NINE. It’s happening to a lot of foods, like the “half gallon” ice cream that has magically shrunk down to like 50 oz from 64. Sofa king annoying!

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**Author:** ![thelurkinghorror](https://avatars.discourse-cdn.com/v4/letter/t/7c8e57/32.png) [@thelurkinghorror](https://boards.straightdope.com/u/thelurkinghorror)\
**Post date:** [August 1, 2019, 4:15am UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/92 "2019-08-01T04:15:30Z")

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Don’t know about your local stores, but my reference point is last Friday at Raley’s. About half and half 12 and 16 oz. Prices were all over the place.

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**Author:** ![Jophiel](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jophiel/32/66_2.png) [@Jophiel](https://boards.straightdope.com/u/Jophiel)\
**Post date:** [August 1, 2019, 4:58am UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/93 "2019-08-01T04:58:56Z")

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> [@Ethilrist](#):
>
> Man, if they’ve got enough inside jobs going to justify one or two FTE’s to check receipts at every store in the chain, it’s not working. Are they really losing that much money that this is worth doing?

It’s helping to prevent cashier theft, customer theft, prevent mistakes from slipping through, etc. Given how busy the place can be, it’s probably not hard to justify their value if they’re only preventing one instance an hour of any of those things.

Consider too that, although the per unit price on goods is usually lower than at other stores, the package price is going to be more because you’re buying in bulk. There aren’t many “cheap” items at Costco so, again, it probably doesn’t take more than one or two items being properly paid for that may have otherwise walked out unpaid before the employee has made their hour on the job worth it.

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**Author:** ![Balthisar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/balthisar/32/2825_2.png) [@Balthisar](https://boards.straightdope.com/u/Balthisar)\
**Post date:** [August 1, 2019, 11:52am UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/94 "2019-08-01T11:52:29Z")

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> [@pulykamell](#):
>
> Target? I’ve never seen one at Target. The big box home improvement stores usually have them, though.

This is how I know I’m in a bad area, because typically they _don’t_ have them.

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**Author:** ![CairoCarol](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cairocarol/32/3825_2.png) [@CairoCarol](https://boards.straightdope.com/u/CairoCarol)\
**Post date:** [August 1, 2019, 2:12pm UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/95 "2019-08-01T14:12:33Z")

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Back in the 1980s when I was in my 20s and developing my long-term habits as an adult, I lived on a small, remote island in the western Pacific. The ship with groceries and supplies from off-island came once a month. So if you really didn’t want to run out of something like toilet paper or peanut butter, you had to know the schedule and after the boat came in go buy enough of whatever you wanted to last a full month (and a bit longer for good measure).

I’ve been a fan of bulk shopping ever since. If you have the financial resources to do big up-front purchases and the pantry/freezer space, it’s quite liberating to take care of staple purchases just a few times a year. All I need to buy at the regular grocery or farmer’s market is fresh produce, dairy products, and the occasional oddball item I don’t need in bulk, like Angostura bitters.

Since I live 20 minutes from the nearest grocery, it’s nice to know I’m unlikely to ever be in desperate need of a shopping trip. I could survive for weeks or months on what I keep on hand. That’s especially nice with hurricane season beginning - last year Lane caused enough flooding, landslides and road damage that there were delays getting in and out of town for weeks afterward.

That’s my reasoning for liking bulk shopping in general. As to Costco specifically, the quality of their house brand, Kirkland, tends to be excellent.

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**Author:** ![txjim](https://avatars.discourse-cdn.com/v4/letter/t/f07891/32.png) [@txjim](https://boards.straightdope.com/u/txjim)\
**Post date:** [August 1, 2019, 2:19pm UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/96 "2019-08-01T14:19:40Z")

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> [@DWMarch](#):
>
> Because the people who do not pay the fee do not get through the door. If you have ever been in a Walmart and wished you were Thanos, you will see the value in Costco right there. If not then not.

Actually, Costco on weekends is it’s own version of Hell. Especially around the Christmas holidays.

For every Costco that opened in my area, there are 5 or more Sam’s Clubs, and they are not limited to higher-income areas. Costco targets a higher level of influence whereas Sams will open in all areas.

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**Author:** ![bump](https://avatars.discourse-cdn.com/v4/letter/b/7c8e57/32.png) [@bump](https://boards.straightdope.com/u/bump)\
**Post date:** [August 1, 2019, 2:43pm UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/97 "2019-08-01T14:43:52Z")

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> [@lingyi](#):
>
> It may because it’s Hawaii, but certain things like soda are more expensive at Costco than in other stores when it’s on sale. My cousin worked at 7-UP and while he could buy X number of cases a month, his cost was higher than the store sales price also. What I think happens is that Costco negotiates for X number of cases/pallets/truckloads for a set time (probably years) for a set price. Regular stores however are offered pricing based on holidays (monthly and seasonal) when the production lines ramp up (since soda is perishable) and they may double or triple their regular order.

Nah, Sams and Costco do that in the continental US as well. I think they’re working off the theory that people will come in to get stuff llke cheap pants or coffee or whatever, and decide they really want a 48-pack of soda, even if it’s slightly more expensive than the grocery store sale price.

Not everything at those stores is always cheaper than elsewhere, even in bulk. Sometimes it’s the same price per unit, just in a bigger container.

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**Author:** ![lingyi](https://avatars.discourse-cdn.com/v4/letter/l/d2c977/32.png) [@lingyi](https://boards.straightdope.com/u/lingyi)\
**Post date:** [August 1, 2019, 2:55pm UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/98 "2019-08-01T14:55:51Z")

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> [@CairoCarol](#):
>
> Back in the 1980s when I was in my 20s and developing my long-term habits as an adult, I lived on a small, remote island in the western Pacific. The ship with groceries and supplies from off-island came once a month. So if you really didn’t want to run out of something like toilet paper or peanut butter, you had to know the schedule and after the boat came in go buy enough of whatever you wanted to last a full month (and a bit longer for good measure).
> 
> I’ve been a fan of bulk shopping ever since. If you have the financial resources to do big up-front purchases and the pantry/freezer space, it’s quite liberating to take care of staple purchases just a few times a year. All I need to buy at the regular grocery or farmer’s market is fresh produce, dairy products, and the occasional oddball item I don’t need in bulk, like Angostura bitters.
> 
> Since I live 20 minutes from the nearest grocery, it’s nice to know I’m unlikely to ever be in desperate need of a shopping trip. I could survive for weeks or months on what I keep on hand. That’s especially nice with hurricane season beginning - last year Lane caused enough flooding, landslides and road damage that there were delays getting in and out of town for weeks afterward.
> 
> That’s my reasoning for liking bulk shopping in general. As to Costco specifically, the quality of their house brand, Kirkland, tends to be excellent.

It may sound funny, but be sure to stock up on toilet paper. For those of us who remember the 1970’s Hawaii Matson strike, when stores ran out of it, it’s a real concern.

Also, funny that you’re back on a rock highly dependent on those ships coming in! “Lucky you live Hawaii!” 😃

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**Author:** ![amaguri](https://avatars.discourse-cdn.com/v4/letter/a/49beb7/32.png) [@amaguri](https://boards.straightdope.com/u/amaguri)\
**Post date:** [August 1, 2019, 7:33pm UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/99 "2019-08-01T19:33:00Z")

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membership is worth the cost for me even if I never get more than these two things:  
gas, usually .20 - .40 cheaper per gallon  
prescriptions, savings vary but their generic claritin-D is like 80% less expensive and just as effective

But we also like their garbage bags, paper towels, toilet paper. Sonicare replacement heads are cheap. I don’t drink but I’ve been told they have good, cheap booze.

You can’t buy everything there… for example their regular price for boxed cereal and for soda is pretty terrible.

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**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\
**Post date:** [August 1, 2019, 7:49pm UTC](https://boards.straightdope.com/t/explain-costco-to-me/837894/100 "2019-08-01T19:49:17Z")

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[Moderating]

Wait, what is this doing in CS?

Moving to IMHO.

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