Does Costco really help save money?

So how much money can you save by buying bulk groceries from Costco? By my calculations, you'd save over $1,000 in a single year by shopping from a wholesale retailer . Below is a breakdown of how I reached that figure. (And if you get a Costco Executive membership, you could save even more.)

Where can I save money at Costco?

The non-food side of the store holds the best deals. Many of us think FOOD when we think Costco. But really, the best margins in price are on the non-food side of the store! Furniture and housewares tend to have the highest markups – anywhere, all the time.

What item does Costco lose money on?

But Costco's $1.50 combo is a strategic decision, known as a loss-leader: The company is willing to lose money selling the hot dogs at that price - inflation be darned - so long as it helps Costco draw in and retain customers.

What foods are not to buy at Costco?

I love Costco (and have shared my favorite things to get there), but some items aren't worth buying. Mixed roasted nuts, breadcrumbs, and big cartons of sour cream often go bad before I can use them. Marinated frozen salmon, husked corn, and shredded cheese aren't usually worth buying at Costco.

How much do you have to buy for Costco to be worth it?

But if you bought more than $1,2000 a year worth of stuff at Costco.com, paying for the $60 membership fee would be worth it to avoid the 5% surcharge. Say, for example, you make $2,500 worth of purchases per year at Costco.com.

Is Costco cheaper than Sam's Club?

Costco's membership fees are more expensive and the prices of basic products at Sam's Club are generally cheaper . Costco has more stores worldwide, but Sam's Club has more stores in the U.S.

How do I get cash from Costco?

Cash back rewards are provided as an annual credit card reward certificate once your February billing statement from Citi closes and is redeemable at U.S. Costco warehouses . Terms, conditions and exclusions apply. Reward certificate is enclosed in Costco membership renewal notice.

How much money do you need to spend at Costco to get money back?

Because you get 2%, you'll need to spend $3,250 to receive $65 in cash back. At that point, your effective annual membership rate is back down to $65.

What are the negatives about Costco?

While a Costco membership can save you money on bulk purchases, you risk food waste . Costco gas is competitively priced, but driving a distance to the store could negate that savings. The store's return policy is generous, but its wide range of inventory could open the door to impulse buys.

How much do you have to spend for Costco to be worth it?

But if your annual spend regularly tops $3,000 , you're better off with the Executive Membership. Every additional dollar you spend after $3,000 will bring your annual fee further and further below $60 and end up saving you money in the long run.

What is Costco's biggest loss leader?

That said, Costco actually does have one loss leader — the hot dogs they sell . They've famously been $1.50 (with a drink) since Costco opened 42 years ago. In fact, when then-CEO Jim Sinegal stepped down, some questioned if the price of the hot dog would go up.

11 Costco Items to Buy That Save Money » Homesteading Where You Are (2024)

Today, I want to talk about my favorite things I get at Costco. We already talked about how I save money at Costco, but there now I want to talk about the Costco items to buy that will SAVE you money!

I might be the weird one, but I even like to see grocery hauls. They either make me feel like I buy too much or not enough. I like to know if I should check out another item or maybe save money by buying another brand.

So, the first thing you should know is our grocery budget is $400 every two weeks. This budget doesn’t include pet items, pull-ups, or personal care items.

We don’t eat any specific way, except we try to eat as healthy as we can. While I would love to purchase all organic items, that doesn’t fit in our budget.

I have to feed a family of six on our $800 monthly budget. With the right Costco items, meeting that budget is no problem.

11 Costco Items to Buy That Save Money

1. Organic Bananas

Costco sells prepackaged bags of organic bananas. Each bag is 3lbs and costs $1.99. That equals $.66 per pound! I buy three bags each time I go there. My kids love bananas.

You can use these bananas to make delicious batches of my banana muffins. Your kids will thank you!

2. Water Bottles

I know, you’re thinking that we don’t NEED to buy water bottles. You’re right! We need to do better with reusable water bottles.

However…

The Kirkland brand of water bottles are sold in a pack of 40 for $3.39. It is a great price, even if you compare it to Wal-Mart!

3. Honey

I prefer to get my honey from local sources, but I like to use Costco honey for baking. When you heat up honey, it does lose some of its natural nutrients and benefits.

Costco has both raw honey and clover honey. Their raw, unfiltered honey costs $13.89 for 44oz.

4. Maple Syrup

11 Costco Items to Buy That Save Money » Homesteading Where You Are (3)

The last three years haven’t given us a great yield of maple syrup. We don’t use the fake syrup made of high fructose corn syrup.

Unfortunately, maple syrup is very expensive in the stores. Costco sells a 33oz bottle for $10.49! You won’t find that price anywhere else.

5. Romaine Lettuce

I try to grow as much of our lettuce needs as possible, but winter can be hard for us. Costco sells both organic and non-organic lettuce.

Lettuce is on the “dirty dozen” list for 2020, so I suggest you do purchase organic lettuce.

There are a few options for romaine lettuce available at Costco. One bag has 5 heads of romaine lettuce, and it is sold for around $3.50. We go through a lot of lettuce when it isn’t the gardening season.

6. Dog Food

I am aware of the controversy surrounding grain-free dog food. We since have switched, but I am leaving this for those who want an affordable grain-free dog food.

I mentioned this before. We purchase a large bag of dog food that is grain-free at Costco. It is 35 pounds and costs $33.99. Before we found this deal, we would spend $35 on a 15lb bag of dog food. It saved us a great deal of money each month!

7. Salmon Burgers

11 Costco Items to Buy That Save Money » Homesteading Where You Are (4)

If you try to find salmon burgers at the stores, they are expensive. At Costco, I purchase a bag with 12 wild Alaskan salmon burgers for $15.99. \

This price might seem high, but Wal-Mart sells a box of 4 for $4. The kids absolutely love these, plus there are only a few ingredients!

8. Lunchmeat

My kids love lunchmeat, but it is expensive to buy in the stores. Hillshire Farm sells a deli variety pack at Costco. You get oven-roasted turkey breast, honey ham, and smoked turkey breast. It is priced at $9.99. That equals $3.30 per pound!

9. Flour

11 Costco Items to Buy That Save Money » Homesteading Where You Are (5)

I love to bake. Whether it is bread or cookies, I go through a lot of flour. If you use all-purpose flour, Costco sells 25lb bags for $5.89, equaling $.236 per pound.

You might think that somewhere like Aldi would be cheaper, but it isn’t! Aldi prices their 5lb bags of flour at $1.87, equaling $.374 per pound.

10. Applesauce Pouches

11 Costco Items to Buy That Save Money » Homesteading Where You Are (6)

I tend to stray away from prepackaged items at Costco, but their applesauce pouch price is amazing. They make the perfect snack for the diaper bag. Kirkland sells 24 organic applesauce pouches for $9.99.

11. Garbage Bags

11 Costco Items to Buy That Save Money » Homesteading Where You Are (7)

Trash bags are expensive in the stores. Kirkland brand bags cost $13.49 for 200 bags.

Yes, you read that right! The box will last you a long while.

That’s Not All!

Clearly, this isn’t all that I buy at Costco on a regular basis. Some other items include:

Alaskan Pollock fish sticks (the only meat that my youngest consumes)
Jones’ Sausage Patties – typically priced around $10.89 for 36 patties, with only a few ingredients.
Whole Chickens – if my local store doesn’t have a good sale, I get them at Costco.
Organic Ground Beef – when I can’t get it local, I always buy from Costco.
Outshine Bars – my kids love these popsicles made with real fruit. They are typically priced at $9.99 for 24 bars!

Finding Costco Items to Buy to Save Money

Are you a Costco shopper? If so, I want to hear YOUR favorite items. I love to pick up new things while I’m there. Don’t we all? Let me know in the comments!