Using Costco correctly

[GoBigRed]

I think I'm doing Costco wrong. This was my first year as a member and I was upsold to the expensive membership with the promise that I'd regain the extra $55 in the form of 2% back. I just got my return and it was only $39.... not $55 since I guess I didn't shop enough.
Does anyone have experience successfully getting the difference refunded since that was part of their sales pitch and it clearly didn't work out for my first year?
Which membership do you all buy?

I would just go to the membership counter/customer service and ask for the difference to be refunded.  It should not be an issue.  I am not sure if they make you downgrade to a regular membership when they issue the refund, but if they do, I am sure you can add back the executive membership at any point in the future.  Costco will not send you a check automatically for the difference (in your case $16), only what you earned via the 2%.  Most people forget about the promise and never think to  ask for the refund. 

Whether an executive membership is worth it depends on whether you think you will spend enough in the upcoming year to make the cost of the membership effectively less than $55.  If you spend between $2,750 or more in a year, it is cheaper for you to keep an executive membership, as this makes the cost of a membership less than $55 (since spending $2,750, you would receive a check for $55, the difference between the executive and regular membership).  You get a free executive membership if you spend $5,500 (since the cost is $110 for an executive membership).  If you spend less than $2,750 in a year, it is cheaper for you to have the regular membership.

If you anticipate your spending to stay the same, and no big purchases, I would stick with the regular membership.  Something I learned this year was that you can essentially upgrade to an executive membership at any time and pay the prorated amount based on when your membership occurred.  So if you end up needing a big purchase early in your membership year, it could work out in your favor to upgrade before that purchase is made.   


 

[CanuckExpat]

As promised, here is more of the background info on rotisserie chickens, if anyone cares:

Why Costco May Never Raise Prices on $4.99 Chickens:
"In a nutshell, it's Costco's business philosophy that holds prices in check..the company could easily make more on these items by raising prices. But it decides not to, because they are proven to drive traffic into stores. Costco locations generally aren't as convenient as the neighborhood supermarket or strip mall, so the retailer uses cheap ready-to-eat foods as an excuse for members to pop in on a regular, perhaps even daily, basis. Likewise, warehouse clubs like Costco keep prices for milk and gas especially low because, unlike most other things sold at these stores, consumers need them once a week or so"

Grocery Store Economics: Why Are Rotisserie Chickens So Cheap?:
"much like hunters who strive to use every part of the animal, grocery stores attempt to sell every modicum of fresh food they stock. Produce past its prime is chopped up for the salad bar; meat that's overdue for sale is cooked up and sold hot. Some mega-grocers like Costco have dedicated rotisserie chicken programs, but employees report that standard supermarkets routinely pop unsold chickens from the butcher into the ol' rotisserie oven...In fact, in spite of their creative uses of items that have passed their sell-by dates, grocery stores are still being conservative enough when it comes to food safety to waste plenty of usable meat and produce -- around $900 million in inventory annually, according to a 2001 study. And as the Harvard report points out, major retailers aren't generally wont to take a loss, meaning their waste "ultimately could be a cost born by consumers in the price of goods."

So not only do you have nothing to fear from that grocery store rotisserie chicken, you could actually be doing a triple good deed by purchasing it -- making your life easier, keeping prices down for your fellow shoppers, and helping the environment."

[Dicey]

I think I'm doing Costco wrong. This was my first year as a member and I was upsold to the expensive membership with the promise that I'd regain the extra $55 in the form of 2% back. I just got my return and it was only $39.... not $55 since I guess I didn't shop enough.
Does anyone have experience successfully getting the difference refunded since that was part of their sales pitch and it clearly didn't work out for my first year?
Which membership do you all buy?

Go to the membership desk and they'll take care of that with absolutely zero hassle. I believe they downgrade you to a Gold membership and refund the difference.
We have the Executive membership and use the hell out of it, so we always come out ahead.

I mentioned it on page one, but it bears repeating. Do not buy stuff with the refund check if you have a Costco Visa card. Take the rebate in cash (Easy peasy, they're set up for it. Typically you can cash it right at the register.) and keep on charging your purchases so you don't miss out on the rebate.

[runewell]

My experience is Costco doesn't really compete with Aldi.  Costco quality is generally higher and price is decent due to bulk packaging.  Aldi in my area generally has acceptable quality at the lowest price.  I usually find Costco is the better value overall, but maybe there are some items at Aldi that are just as good?

The only thing I avoid buying at Aldi is bananas, those can sometimes seem like the bottom of the barrel.  But otherwise, I have trouble distinguishing any change in quality.  What's funny is some items (grape jelly, for instance) look exactly like they would at Walmart with the name brand.  At Aldi, they have a different name, plus the package might be different (larger bar code).  I'm pretty sure it's all coming from the same place and just packaged differently. 

Aldi also has good clearance sales and rotation of products.  I like to pick up European cheese for <$5/lb.  Good luck paying that anywhere else.

Finally, occasionally Costco bulk purchases aren't a particularly good deal at all.  It would be interesting to have people report here what good price they got for bulk purchases, then I'll go over to Aldi and compare.

[nereo]

FWIW, CostCo has never raised the price on its "Hot Dog/Sausage & Soda" since the first store opened in the 1980s. It stands at $1.50 at every CostCo, and is almost certainly a loss-leader.

Actually, the original deal was for a 12oz can of soda and a hot-dog.  It's been modified to be a 20oz fountain with free refills.

Just for general knowledge....

[CanuckExpat]

I get the rotisserie chicken being a "good deal" but I haven't fully understood why people go on about the hot dog and soda..

I guess it's a cheap snack compared to alternative prepared food, but it's still $1.50 for a single hotdog and soda.
Couldn't I buy a 12 pack of hot dogs, 8 pack of buns, and a 2L bottle of soda for like $3 combined or something? A hot dog isn't much work to cook.

Why is it such a good deal that people go on and on about it?

[Dicey]

I get the rotisserie chicken being a "good deal" but I haven't fully understood why people go on about the hot dog and soda..

I guess it's a cheap snack compared to alternative prepared food, but it's still $1.50 for a single hotdog and soda.
Couldn't I buy a 12 pack of hot dogs, 8 pack of buns, and a 2L bottle of soda for like $3 combined or something? A hot dog isn't much work to cook.

Why is it such a good deal that people go on and on about it?

Lol, maybe because shopping at Costco is so much work that people get hangry. 

Oh, and in New Zealand, it's  $2.50.

[Gin1984]

I get the rotisserie chicken being a "good deal" but I haven't fully understood why people go on about the hot dog and soda..

I guess it's a cheap snack compared to alternative prepared food, but it's still $1.50 for a single hotdog and soda.
Couldn't I buy a 12 pack of hot dogs, 8 pack of buns, and a 2L bottle of soda for like $3 combined or something? A hot dog isn't much work to cook.

Why is it such a good deal that people go on and on about it?

Lol, maybe because shopping at Costco is so much work that people get hangry. 

Oh, and in New Zealand, it's  $2.50.

The pack of hot dogs is 8.99 for 3lbs.  I just looked last night.

[I'm a red panda]

Couldn't I buy a 12 pack of hot dogs, 8 pack of buns, and a 2L bottle of soda for like $3 combined or something? A hot dog isn't much work to cook.

When you find that deal, let us know.

[runewell]

Let's be generous and suppose that a hot dog costs 20 cents, a bun costs 20 cents, and a pop costs 20 cents.  That's 60 cents, plus they have to pay someone to serve you.  How are they losing money on this again?

[Kitsune]

Couldn't I buy a 12 pack of hot dogs, 8 pack of buns, and a 2L bottle of soda for like $3 combined or something? A hot dog isn't much work to cook.

When you find that deal, let us know.

Local grocery store prices *In CAD, because I can't be bothered with exchange rates right now (and I believe that the cost of Costco hotdog in the resturant is 1.75 around here, though I don't personally buy it):
- 8-pack of buns: 3.59 (Costco occasionally has sales where a 3-bag pack is 5$; that's as cheap as I've ever seen them anywhere. I don't eat bread, but the rest of the family does, so...)
- 12-pack of hot dogs (no-name brand, with wheat in them so I can't eat them...): 5.50. Occasionally on sale for around 2.50-3$. Costco sells packs of the larger hotdog sausages (the size of what they sell in their restaurant) for about 11$, or a 3-pack of smaller hotdog sausages (similar to what's at the grocery store, size-wise) for 11$, which works out to 3.60/pack, or thereabouts. And the Kirkland brand doesn't have wheat as filler.
- Soda. Hahaha. Um. Store-brand coke in a 2L container works out to 1.50, last I recall? Brand-name is more expensive. No idea how much it is at Costco; we don't drink soda.

But, basically: one Costco hotdog is like 3x the size of a 'regular' hotdog from the grocery store, so alter the price/quantity calculations there. If you eat bread and drink soda, assuming regular prices, you're looking at 2-3$/person on food and soda for making it at home. If you're out with kids, 1.50 for a meal everyone will eat (and a hotdog that size can be split in half between 2-3 kids until they're old enough to eat that quantity...), it's convenient, it's less than the cost of ingredients elsewhere, at least around here... *shrugs*

And while I can't eat wheat, I'm totally ok with buying Kirkland hotdog sausages, Husband and Kid having hotdogs and salad and iced tea, and me having hotdog sausages and salad. I'm just also aware that I'm not saving money by buying it in a package vs buying it prepared in the restaurant.

[mindy]

Can anyone explain the military membership benefit. It says you get $50 back, but is that in coupons on things I'm never going to buy?

We have the Costco military membership, and yes you do get that money back in coupons. Half of the coupons were good, half we just tossed. We got it for the free chicken, $6 off any meat, free bagels, and free lotion. All of that doesn't add up to $55, but we've saved a lot on other things that it worked out. I think some the other coupons would have been good (free dog treats) if they were applicable to us, but we don't have a dog so...

[GoBigRed]

Also, people may want to check whether their employer has any relationship with Costco if you sign up.  My wife's did, and similar to the military benefits, we got a coupon book with free rotisserie chicken, pizza, free ice cream, free case of water and various other coupons when we signed up.  This was 5+ years ago, but worth a shot if you work a larger employer.

Very similar to the promotions that Sam's Club has when you sign up. 

[CanuckExpat]

Couldn't I buy a 12 pack of hot dogs, 8 pack of buns, and a 2L bottle of soda for like $3 combined or something? A hot dog isn't much work to cook.

When you find that deal, let us know.

If you insist. You all got me curious*, and I went and took a walk to the nearest grocery stores and checked prices. I don't think my estimate was that far off. Also, now thanks to this thread, I guess we'll be grilling hot dogs this weekend.

Apparently hot dogs and buns are more expensive than I thought, but I still don't think the Costco hot dog deal is "screaming hot deal" or anything.

I bought seven hot dogs, and eight buns for $3.04:


I could have got cheaper I could have got more expensive, but this was me randomly walking to the nearest store, not shopping for the cheapest deal.
We already have soda at home, but adding a two liter bottle of no name cola would have been $0.70:


For reference, a pack of hot dogs at the grocery store seemed to vary from $1.99 to $5.99


The buns cost $1.37 which seems kind of a waste of money for white bread and empty carbs:


At the Dollar Tree next to it, hot dogs and buns were even cheaper starting at $1.50 for a pack of hot dogs, and 85 cents for the buns:


I'm sure they are fine, but I didn't buy the hot dogs at the Dollar Tree, because I thought Dollar Store hot dogs sounded sketchy .. didn't stop me from getting the empty carbs there :)

Obviously, if you like the Costco hot dogs as a prepared meal, go ahead and buy them. Nobody is stopping you**, but unlike the rotisserie chicken, I don't think this is cheaper to get prepared than it is the raw ingredients (If I'm bored again, maybe I'll do as similar work up for the rotisserie chicken, but as seen up-thread, I think other people have already examined this).


*Also, son wouldn't nap, so strapping him to me while I walked around pedantically checking prices seems to have bored him to sleep. So win - win.
** Well the waste on the single serve soda kind of bothers me, but I used to work at a cup factory, so I have a sore spot for disposable plastic lids, etc

[Kitsune]

Omfg where do you live I want those grocery store prices.

[CanuckExpat]

Omfg where do you live I want those grocery store prices.

Those prices where in Charleston SC (James Island specifically if it matters). Which is consider high-ish COL from what I understand

We're travelling and have only been been in this apartment a week; my only criterion for going to those stores was they were across the street. Someone local with an optimized shopping routine would probably do better.

I know some groceries are more expensive in Canada, but none of those prices seem outrageously low to me from my time living in Toronto (many years ago). If any of this stuff was more expensive, I just wouldn't buy it, would you all? I don't think any of them are really neccessesaties or worth much more than those prices. If they were sold at a higher price, I'd just get something else instead.

I think that's what economists call substitute goods (from Seinfeld: http://www.yadayadayadaecon.com/concept/substitutes/)

Even at that price, I think the hot dog buns are kinda stupid, why wouldn't I just buy twice the meat and skip the white bread? Same with the soda, it's just carbonated sugar water, if it was much more expensive than that, I'd drink water or beer preferably, but that's perhaps an imperfect substitute  :)

And I haven't read it in a while, but fairly sure that's what MMM was getting at in his article on Grocery Shopping With Your Middle Finger

[Kitsune]

Well, yes. Kinda.

That's assuming that any grocery store in reasonable distance has much better prices. I have Costco, Maxi, and IGA - Costco and Maxi are 60km away near work, and IGA is the ONLY option near my house.

We cobble together good food on a  reasonable budget, but... nothing, NOTHING, will ever match prices like what you listed.

Advantage of city living: cheaper options. Advantage of country living: if the grocery store wants to charge 4$/lb for non-organic chicken on sale, and 3.70$ for a dozen eggs, putting in a chicken coop becomes a reasonable option. :)

[nereo]

Let's be generous and suppose that a hot dog costs 20 cents, a bun costs 20 cents, and a pop costs 20 cents.  That's 60 cents, plus they have to pay someone to serve you.  How are they losing money on this again?

Well as others have noted, its prepared food, so in a different category from buying the raw ingredients.  Canuckexpat also did an awesome job of looking at individual prices.

That said, rule of thumb is for fast-food is triple the cost of raw ingredients to break even.  The hot dogs are 1/4lb*, plus they also provide condiments (including sauerkraut and chopped onions along with mustard, relish and ketchup). We can quibble about ingredients costs, but somewhere between 90¢ - $1 sounds roughly right. Adding in labor costs, equipment, safe-food practices and I don't see how they can be making any money.  My friend who manages the costco basically confirmed this the other day saying "oh yeah, we lose money on everyone we sell, but it's ok b/c on average everyone who comes in spend over $100 shopping"

Perhaps more to the point - there isn't much out there for prepared foods for less. Even making something at home it's pretty cheap  Not terribly healthy, but there you go.

* the cheapest hot dogs Cunuckexpat found were 18¢/oz, which = 72¢ per quarter lb. (note the ones in the package are smaller than the ones CostCo sells, hence the major price difference)

[Ryland]

Love this! Costco = staples. Or the goods/items that won't perish.

What I do is stack up the food on a storage shelf in the garage. It works wonders and keeps me or my girlfriend from having to go to the store to buy more stuff when things run out. It also makes us put the Costco items in cool looking little jars, which is just a nice look for the house.

[Bracken_Joy]

Love this! Costco = staples. Or the goods/items that won't perish.

What I do is stack up the food on a storage shelf in the garage. It works wonders and keeps me or my girlfriend from having to go to the store to buy more stuff when things run out. It also makes us put the Costco items in cool looking little jars, which is just a nice look for the house.

I'll admit, "oats or rice in glass jars" is a key kitchen decor theme here =D

[Lanthiriel]

One more I thought of: underwear! I've been very impressed by both fit and durability of the underwear we've bought there for both DH and I. Price is middle of the pack, but the durability/fit makes up for this.

Sorry to resurrect an old post to rave about underwear, but OMG, they have the best base layers. I buy all my underwear, socks, camisoles, and leggings from Costco. Right now I'm wearing merino socks (4 pairs for $12), Felina leggings (2 pairs for $14), Felina underwear (6 pairs for $10), and a tank dress ($7) from Costco. Much better quality for basically Walmart prices.

[Ms Ida]

You beat me in the Costco fashion show today:) I am only wearing Costco fleece lined workout pants, high recommend very warm and high waited enough to keep my back warm, Costco sports bra, and a cardigan. Usually I would have on the merino socks and felina underwear too. The quality is good and best of all no separate clothes shopping trip required!

[runewell]

I know this is slightly off topic but I was in the cereal aisle in Walmart looking at Cheerios. 
Per unit cost, the largest box of Cheerios was slightly more expensive than the next biggest box of Cheerios. 
That seems strange to me, but I have certainly witnessed the phenomenon before. 
It used to be the case that a bigger box was a better value, but I suspect they are trying to making money now that Costco and Sam's Club have you trained to believe that volume purchase always equals biggest savings.

[I'm a red panda]

I know this is slightly off topic but I was in the cereal aisle in Walmart looking at Cheerios. 
Per unit cost, the largest box of Cheerios was slightly more expensive than the next biggest box of Cheerios. 
That seems strange to me, but I have certainly witnessed the phenomenon before. 
It used to be the case that a bigger box was a better value, but I suspect they are trying to making money now that Costco and Sam's Club have you trained to believe that volume purchase always equals biggest savings.

I write math tests and one of the elementary school standards was about unit cost. For variety, the largest box wasn't ALWAYS the "best deal". I had a set of items rejected because my boss said it was ridiculous that the smaller box would have a lower unit cost than the big one. I actually went to a grocery store and took photos to show cases where this happened.

[nereo]

I know this is slightly off topic but I was in the cereal aisle in Walmart looking at Cheerios. 
Per unit cost, the largest box of Cheerios was slightly more expensive than the next biggest box of Cheerios. 
That seems strange to me, but I have certainly witnessed the phenomenon before. 
It used to be the case that a bigger box was a better value, but I suspect they are trying to making money now that Costco and Sam's Club have you trained to believe that volume purchase always equals biggest savings.

I write math tests and one of the elementary school standards was about unit cost. For variety, the largest box wasn't ALWAYS the "best deal". I had a set of items rejected because my boss said it was ridiculous that the smaller box would have a lower unit cost than the big one. I actually went to a grocery store and took photos to show cases where this happened.

I've noticed that too on several occasions, and honestly it kinda ticks me too.  Say what you will about it being a "tax on being bad at math", but especially when buying per-unit it makes no damn sense to charge more for buying larger quantities.
Example: Over the holidays I bought bagels for my family and noticed the store was charging $5.95 for 6 or $14.95 for a baker's dozen (13).  So I ordered four half-dozen.  First the girl kept trying to tell me I was entitled to 2 more bagels because I got a 13th with every dozen. Then she tried to charge me $29.90.  Nope! I ordered 4 x half dozen - that's $23.80. It took two more employees to settle it, and confusion about whether I was "entitled" to two extra bagels, even though I only asked for (and wanted) the 24.
McDonalds does the same thing sometimes - try ordering 2 x 6 nuggets (2 x $2.49) vs 3 x 4 nuggets (3 x $1, on the dollar menu).  Then again, just avoid fast food whenever possible.

::rant over::

[Dicey]

^^Oh, but it was such a good one!^^

[Kitsune]

I know this is slightly off topic but I was in the cereal aisle in Walmart looking at Cheerios. 
Per unit cost, the largest box of Cheerios was slightly more expensive than the next biggest box of Cheerios. 
That seems strange to me, but I have certainly witnessed the phenomenon before. 
It used to be the case that a bigger box was a better value, but I suspect they are trying to making money now that Costco and Sam's Club have you trained to believe that volume purchase always equals biggest savings.

Yep - cheerios are only a better deal at Costco if they're on sale (3$ off the box, usually). Otherwise cheaper at the grocery store. (I never bought cheerios before having a kid, but they are the ideal "occupy small hands for a snack" food)

You do have to have a good head for numbers and price recollection, because bulk and/or Costco is definitely not always the best price per unit... but often enough, the way it works out (for us, using our grocery stores prices, evaluate accordingly for your locale, etc) is that costco is better than standard grocery store prices, but slightly more expensive OR equal to sale prices, depending. So... depends on what you need,what's available, what's on sale, and what the actual prices are. 

[SEAKSR]

I'm almost ashamed to admit that my SO and I go to Costco at least 3 times a week.

However, in the roughly 12 times per month we go in, we walk out empty handed around 10 times. It's a large dry indoor space to walk, and I live in a rainforest. That said, we buy very specific things at Costco.

Gift Cards for the local theater chain ($19.99 for a $25 value card, use that card on cheap night, for about 40% off regular pricing)
Butter (works out to 2.50/lb. all other grocery stores in town start at 3.50/lb not on sale)
Pork loins (only when they're $5.00 off per package... and we find the cheapest package we can find. Got one for $1.27 last round of sales)
Pita Bread (no comparable elsewhere in town)
TP, Paper Towels and Garbage Bags
Foodsaver Bags


Anything that we've been eyeing long enough to see them go to a $xx.00 price tag. We have gotten Italian Sausage (Straight to freezer once at home) new cook-ware, knives, and tennis shoes this way. That is the lowest price they're willing to go on an item. Because we live in such an expensive area shipping wise, even Costco won't ship things back to their own warehouses elsewhere, thus, steep discounts. And items will sit sometimes as long as a year before they hit that price point. We comparison shop. Waited 3 years on those knives, and they were cheaper than Amazon when we bought them.

But the best thing ever that a Costco employee did for us:

Sold me 1 tire off the shelf as a full size spare, then mounted that full size spare on my existing rim because my flat had side wall damage.

It was a Sunday, I was over 200 miles from home and of course they didn't take Visa back then. All I had was enough money in my checking account to cover one tire, and their usual safety policy is to sell them in pairs. Which I'm normally fine with. I just didn't have the money available immediately. (Like many others around the forum I have to hide my money or I will impulsively spend). To top it off, they only had the more expensive tires in stock at that store.

I had a full size spare set at home (pull the studs out of a pair of the winter tires, not hard). I was able to return my "new spare" two days after I bought it, no questions asked. I never would have thought about returning a tire had the employee not (very quietly) told me how to handle it. That guy saved me a huge headache and an even tougher drive on a donut. I really love Costco... I just wish my local store here had Pizza in the cafe... I miss their pizza.

[momcpa]

Our daughter and son-in-law have a Costco membership.  We were shopping with them before Christmas and were talking about the discounted gift cards.  We wanted to buy a specific one to use as part of our Christmas gift to the grandkids (toy store GC).  We would use the card to buy the presents, not give the card to the kids.  My daughter specifically asked when she was checking out if the card was 'activated'.  They assured her it was ready to use. 

When we went to the toy store to buy the gifts, the clerk said NOPE.  It wasn't activated and they couldn't do it on their site.  With the discounted purchase price it had to be taken care of at Costco.  We paid cash. 

My daughter took the un-activated cards back to Costco and did get her/our money back with a question.  So it ended up okay, but was confusing at the toy store, and a little embarrassing.

[Lanthiriel]

You beat me in the Costco fashion show today:) I am only wearing Costco fleece lined workout pants, high recommend very warm and high waited enough to keep my back warm, Costco sports bra, and a cardigan. Usually I would have on the merino socks and felina underwear too. The quality is good and best of all no separate clothes shopping trip required!

Today literally everything I am wearing except my bra and shoes came from Costco. Being able to stock your pantry and your closet in one place is pretty amazing.

[Trudie]

There have been a lot of threads on Costco.  But I think how you view it and using it "correctly" largely has to do with how close you are to one, how many people you're shopping for, and how you value your time.

I live 75 minutes from my nearest Costco, which is also one of the nearest major cities where we go or pass through about ten times a year.  We never make the drive to go to Costco without a bigger agenda, which usually involves medical appointments, travel to the airport, or super-duper consolidated shopping trips.  I never fail to come home with a $5 rotisserie chicken -- which is good for 4-5 meals depending on what I do to stretch it.

I'm price-conscious enough to know what is and isn't a good deal at Costco.  But sometimes I'll opt to spend a few more cents on convenience.  I value my time, and when you live in a rural area most things aren't "on your way home" and driving all over hell on yon just doesn't make sense (cents?)

I routinely buy household items -- towels, sheets, winter gloves -- at Costco due to the return policy, generally good quality, and yes -- price.  A lot of these items I buy online at Costco.com without ever leaving home.  It's always my first stop.  Could I maybe get a "deal" elsewhere?  Perhaps.  Maybe not.  But I have no desire to spend an hour driving around or on my computer to save a few bucks, and I feel that given the limited merchandise space that something has to be fairly decent in the first place to even make it into Costco's inventory.

[FIPurpose]

Couldn't I buy a 12 pack of hot dogs, 8 pack of buns, and a 2L bottle of soda for like $3 combined or something? A hot dog isn't much work to cook.

When you find that deal, let us know.

If you insist. You all got me curious*, and I went and took a walk to the nearest grocery stores and checked prices. I don't think my estimate was that far off. Also, now thanks to this thread, I guess we'll be grilling hot dogs this weekend.

Apparently hot dogs and buns are more expensive than I thought, but I still don't think the Costco hot dog deal is "screaming hot deal" or anything.

I bought seven hot dogs, and eight buns for $3.04:


I could have got cheaper I could have got more expensive, but this was me randomly walking to the nearest store, not shopping for the cheapest deal.
We already have soda at home, but adding a two liter bottle of no name cola would have been $0.70:


For reference, a pack of hot dogs at the grocery store seemed to vary from $1.99 to $5.99


The buns cost $1.37 which seems kind of a waste of money for white bread and empty carbs:


At the Dollar Tree next to it, hot dogs and buns were even cheaper starting at $1.50 for a pack of hot dogs, and 85 cents for the buns:


I'm sure they are fine, but I didn't buy the hot dogs at the Dollar Tree, because I thought Dollar Store hot dogs sounded sketchy .. didn't stop me from getting the empty carbs there :)

Obviously, if you like the Costco hot dogs as a prepared meal, go ahead and buy them. Nobody is stopping you**, but unlike the rotisserie chicken, I don't think this is cheaper to get prepared than it is the raw ingredients (If I'm bored again, maybe I'll do as similar work up for the rotisserie chicken, but as seen up-thread, I think other people have already examined this).


*Also, son wouldn't nap, so strapping him to me while I walked around pedantically checking prices seems to have bored him to sleep. So win - win.
** Well the waste on the single serve soda kind of bothers me, but I used to work at a cup factory, so I have a sore spot for disposable plastic lids, etc

You have to compare apples to apples.

As another poster mentioned the hotdog is a 1/4lb. and it's also an all beef hotdog. That's going to be pricier than the cheaper pork mix you quoted. Costco sells a hotdog that does not have the same fillers that the ones you've pictured have, but even then at you're cheapest price:

1.99 is .142 per oz.
1/4lb. : .57 hotdog

You found a bun for .11 per bun, but even then costco is providing a much better bun than what you listed.

I think soda is crap so I don't drink it.

Cheapy hotdog lb to lb : 1.50 to .77

Now you did take a picture of the Kayem all-beef hotdogs which are .428 per ounce.

Costco beef to grocery beef hotdog: 1.50 to 1.82

Honestly, I'm guessing that Costco loses somewhere around .25-.5 on each hotdog, and I don't think you can buy all-beef hotdogs at the price of a Costco dog.

[Cowardly Toaster]

So I took my Costco receipt to the local Fred Meyer super market (Krogers) for a walk around price checking. And I found out organic eggs are only 1 cent cheaper apiece at Costco than local.

Tilamook cheese was not more expensive locally. Kirkland brand is though, how is their cheese?

Paper towels seemed cheaper locally. Perhaps the 12 pack of bounties I bought has bigger rolls? I sure hope so because I paid 20% more per roll at Costco.

The avocado oil, pork loin, coffee, diapers and cream of mushroom soup were much better deals at Costco though.

[Ms Ida]

So I took my Costco receipt to the local Fred Meyer super market (Krogers) for a walk around price checking. And I found out organic eggs are only 1 cent cheaper apiece at Costco than local.

Tilamook cheese was not more expensive locally. Kirkland brand is though, how is their cheese?

Paper towels seemed cheaper locally. Perhaps the 12 pack of bounties I bought has bigger rolls? I sure hope so because I paid 20% more per roll at Costco.

The avocado oil, pork loin, coffee, diapers and cream of mushroom soup were much better deals at Costco though.

Interesting, I shop at Fred Myers too and every time I compare the paper towels Freddies is a better price. And since I buy coffee pods I watch that cost closely and the Fred Myer brand(not Kroger Private Select) is cheaper than anything I have found at Costco.

[runewell]

http://www.laurengreutman.com/aldi-walmart/

This lady compares Aldi vs Walmart pricing.  Both stores win and lose on various items.  Don't know how old it is.

[Dicey]

You do have to have a good head for numbers and price recollection, because bulk and/or Costco is definitely not always the best price per unit... but often enough, the way it works out (for us, using our grocery stores prices, evaluate accordingly for your locale, etc) is that costco is better than standard grocery store prices, but slightly more expensive OR equal to sale prices, depending. So... depends on what you need,what's available, what's on sale, and what the actual prices are.

I have a good head for math, but I also have Memory by Menopause, so I have developed tricks. I keep a list of everything I buy at Costco on my phone. I also put in the price and size next to each item. Makes it easy to shop and compare.

Yesterday, I got an email notice from Grocery Outlet. The cereal my kid likes was "on sale" at 2.49 for 18 ounces. I pulled out my phone and no surprise, the everyday Costco price is 5.99 for 48 ounces.  Except that it's featured in the Costco circular periodically and I usually load up when it's about $2.00 off.

Which reminds me of another Costco tip or two:

Tip #1 - When an item is on sale, the "limit" is not per membership, it's typically per day. Since the circulars last for about a month, it's easy to stock up over multiple trips. Some warehouses will allow you to make the max purchase per transaction on the same day. If you're not sure, ask at the Manager's Desk. There's always one there, even if it's only an implied desk at the end of the checkstands.

Tip #2 is that the Sale End date is always printed on the sign. Screaming deal, but more than you need right now? Set a reminder on your phone.

Yesterday, I went to a different Costco than my usual one because I needed to exchange something that broke. My store no longer had the item, but my alternate warehouse did. I returned it with Zero Hassle, despite the fact that I had no receipt and the item turned out to be 13 months old and hence, technically out of warranty. Thanks to my phone and since it's Ultra Frugal January, I stuck to my short list. I left with my exchanged item plus seven staples (milk, bread, eggs, etc.) to see us through the month. Sweet!

[FIPurpose]

Alright just got back from Costco and they sell the 1.50 hotdogs in packs of 14 for about .64 each. With some good bread and no soda of course you're looking at a $1. Labor involved, I'm guessing Costco loses about .10-.20 on each dog.

[Metric Mouse]

Alright just got back from Costco and they sell the 1.50 hotdogs in packs of 14 for about .64 each. With some good bread and no soda of course you're looking at a $1. Labor involved, I'm guessing Costco loses about .10-.20 on each dog.

What about the mustard? Hot dogs must be topped with mustard.

[nereo]

Alright just got back from Costco and they sell the 1.50 hotdogs in packs of 14 for about .64 each. With some good bread and no soda of course you're looking at a $1. Labor involved, I'm guessing Costco loses about .10-.20 on each dog.

What about the mustard? Hot dogs must be topped with mustard.

...but never ketchup!

[Dicey]

Alright just got back from Costco and they sell the 1.50 hotdogs in packs of 14 for about .64 each. With some good bread and no soda of course you're looking at a $1. Labor involved, I'm guessing Costco loses about .10-.20 on each dog.

What about the mustard? Hot dogs must be topped with mustard.

...but never ketchup!

Word!

[Metric Mouse]

Alright just got back from Costco and they sell the 1.50 hotdogs in packs of 14 for about .64 each. With some good bread and no soda of course you're looking at a $1. Labor involved, I'm guessing Costco loses about .10-.20 on each dog.

What about the mustard? Hot dogs must be topped with mustard.

...but never ketchup!

Word!

Yeah. I figured anyone reading this board would be old enough to know that ketchup doesn't go on hot dogs...

[Goldielocks]

As promised, here is more of the background info on rotisserie chickens, if anyone cares:

Why Costco May Never Raise Prices on $4.99 Chickens:
"In a nutshell, it's Costco's business philosophy that holds prices in check..the company could easily make more on these items by raising prices. But it decides not to, because they are proven to drive traffic into stores. Costco locations generally aren't as convenient as the neighborhood supermarket or strip mall, so the retailer uses cheap ready-to-eat foods as an excuse for members to pop in on a regular, perhaps even daily, basis. Likewise, warehouse clubs like Costco keep prices for milk and gas especially low because, unlike most other things sold at these stores, consumers need them once a week or so"

Grocery Store Economics: Why Are Rotisserie Chickens So Cheap?:
"much like hunters who strive to use every part of the animal, grocery stores attempt to sell every modicum of fresh food they stock. Produce past its prime is chopped up for the salad bar; meat that's overdue for sale is cooked up and sold hot. Some mega-grocers like Costco have dedicated rotisserie chicken programs, but employees report that standard supermarkets routinely pop unsold chickens from the butcher into the ol' rotisserie oven...In fact, in spite of their creative uses of items that have passed their sell-by dates, grocery stores are still being conservative enough when it comes to food safety to waste plenty of usable meat and produce -- around $900 million in inventory annually, according to a 2001 study. And as the Harvard report points out, major retailers aren't generally wont to take a loss, meaning their waste "ultimately could be a cost born by consumers in the price of goods."

So not only do you have nothing to fear from that grocery store rotisserie chicken, you could actually be doing a triple good deed by purchasing it -- making your life easier, keeping prices down for your fellow shoppers, and helping the environment."

I can tell all that Safeway years ago, completely switched to only new fresh ingredients.  They even stopped turning end of the day french bread into bread crumbs or garlic bread loaves.

[davef]

I miss Aldi! they dont have it in Oregon, not in the portland metro area anyhow. I really miss the $1 cans of corned beef! does anyone else know where to get them?

[Dicey]

Where I live, the fuel savings alone more than pay for the membership.

The only issue is figuring out how to go fuel up without making an unnecessary trip, if you don't live very close.

True. Would it help to know that the gas stations are open more hours than the warehouses? Typically they open at least two hours earlier in the morning and an hour later at night. The lines are shorter then, too. Google usually has correct info on gas station hours.

Yes, I more frequently fill up when the warehouse itself is not open. Even then, though, the gas station hours are still pretty limited. Makes coordinating going more of a hassle. But I regularly see prices 25 or 30 cents per gallon cheaper than any alternative, which is worth it if it can be combined with being in the same area (even if you're not going to shop at Costco itself).

Warning:  NE Seattle gas minutia:

I typically only use Costco for gas if it is my second tank of the month (rarely need two tanks these days).   For my first tank, I can easily beat Costco's gas prices by using the Fred Meyer Rewards card discount.  By doing most of my grocery and household shopping at FM and taking advantage of specials they have (currently have a 4x points offer on selected gift cards) I usually get 400-500 points a month, which is $4-5 off a tank of gas for our cars. The closest gas station for that program is the one by QFC on 15th and 145th, across from Goodwill.  Other cheap gas options are the Arco stations -- there is one on Roosevelt and Northgate Way, and another one up by Lake Forest Park Town Center.   Arco tends to have prices within a few cents of Costco, so it is a good backup if you don't want to drive all the way up to Aurora Village or down to Sodo.

Gas Buddy is also useful for tracking prices in areas you often travel.   I used to use it a lot, which was how I knew the correspondence between Arco and Costco prices.

Costco does price comparisons within a 1-mile radius of the gas station, so a warehouse with an Arco or similar nearby will tend to have better prices than a location with no competition in the area.

OOH! Here's another tip. Clear your cookies. Sometimes the first offer is the best one, so make them keep giving you new offers by clearing your browsing history.