Costco and Sam’s Club can help you save a bunch of money each trip, but not every person will reap the benefits of a warehouse store membership. Costco memberships start at $65 a year and Sam’s Club memberships start at $50 a year.
Find out why experts think, for some shoppers, these memberships might be a waste of money.
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You’re in a Small Household
One of the selling points of getting a membership to these types of stores is the ability to buy in bulk. However, those living alone or with one or two other people might find buying in bulk to do more harm than good.
“The main reason why people save buying in these stores is because they’re able to buy in bulk and save from having to make multiple trips to the grocery store,” Brandon Hartman, founder of BeyWarehouse, explained. “For smaller households, buying in bulk could lead to unnecessary waste, especially for food items.”
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You Live in a Small Space
Melanie Musson, retail finance expert with InsuranceProviders.com, advised against getting a warehouse store membership if consumers live in a small place. “The bulk items take up a lot of space. If you’re living in an apartment and your kitchen space is limited, you’ll be better off picking up what you need for dinner two or three times a week instead of buying in bulk and not being able to store what you bought.”
You Don’t Live By These Stores
Access is very important and if Costco or Sam’s Club is somewhat of a commute for customers, they may not benefit from a membership. “If the nearest warehouse club is far away, the extra travel time and costs could outweigh the savings,” Reilly Renwick, chief marketing officer at Pragmatic Mortgage, explained.
Musson agreed, adding that if a grocery store is closer, that’s probably a better choice. “A membership can be great when it’s easy to shop, but if you have to travel an hour or two, you might discover that you opt for the local options instead of making a special trip just for the warehouse store.”
You’re Looking for Specialty Products
Costco and Sam’s Club are going to carry name brand products, but the best deals are most likely going to be found on their in-store brands. These are not the places to look for smaller, boutique brands, Renwick explained. “People who prioritize a wide variety of brands or niche products may find the limited selection at these stores less appealing.” Renwick suggested these customers stick to local grocery stores or even delivery services for their shopping needs.
You Don’t Cook
Musson pointed out that those who don’t make food at home a lot probably won’t get much from a warehouse store membership. “If you host gatherings frequently, you’ll be able to take advantage of the bulk. If you rarely cook, you’ll waste money on a membership.” Instead, consumers who like to have food ready to eat can stick to ordering takeout or getting pre-made meals from the grocery store.
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This article originally appeared on GOBankingRates.com: 5 Signs a Costco or Sam’s Club Membership Would Be a Waste of Money for You
