Do warehouse clubs really save you money?

Question: What do you think about buying groceries at the warehouse clubs?


Answer: Warehouse clubs have been referred to as the $200 clubs because many people can’t get out of there for less than $200.

We've done a price comparison of several items at the club stores and have found that we could save 17 percent to 55 percent by purchasing the same items, on sale, at the grocery store. When factoring in the annual membership fee, the savings are even greater.

If you are a careful hunter and have a select few items that you purchase at warehouse clubs, you might save a little money. But for the vast majority of people, the club stores will cost more because of impulse buys and because it takes a long time to "earn" back the $35 membership fee.

At the grocery store you might pick up a $1 to $3 item impulsively. But at the warehouse stores, the impulse buys are more expensive: $5 to $100.

The clubs also prey on impulsiveness by stocking lots of seasonal or limited quantity items. This causes the average consumer to think that they have to purchase it now or it will be gone.

While it’s true you may miss that deal on a fancy foosball table, you will miss the cash in you bank account even more. Shop around and you’ll find better deals and greater savings.

If you want more detailed reasons why we don't like shopping at warehouse clubs, check out these links.

Bragging Rights

America's Cheapest Family Answers Your Questions—from MSN.com

AARP Bulletin—Do you save money at warehouse clubs

In our book, Cut Your Grocery Bill in Half, we present research we did between grocery store sale prices and warehouse club prices on some commonly purchased grocery items. The savings at the grocery store were staggering—between 17 to 50 percent cheaper! Do your own research and let us know what you find.

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