Most Americans are looking for ways to save money, and many of them are looking to discount warehouse clubs to find good deals. Costco and Sam's Club boast impressive bulk item prices and a long list of perks, but which is best?
While everyone has their shopping preferences, here are three reasons why Costco comes out on top.
1. You want the best return policy possible
Admittedly, Costco and Sam's Club both have impressive return policies. However, Costco has fewer exclusions for returnable items and extends certain returns, like cellphones, to 90 days compared to Sam's Club's 14 days for phones.
Costco is also well known for its generous stance on taking back items long after they've been purchased, even without a receipt. You may have seen the viral story of a woman returning a sofa to Costco two years after she bought it. She received a full refund even without showing a receipt.
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While I don't recommend pushing the limit of Costco's return policy, the story is an excellent example of the company's commitment to customer service.
2. You want to maximize your perks
Sam's Club offers many member perks and services, including an optical center, pharmacy, car-buying services, and discounts on rental cars. However, Costco offers similar services and also expands its perks to include discounts on home, auto, and pet insurance.
Switching to Costco's CONNECT insurance, powered by American Family Insurance, could save you significant cash. The company says that for members who save money, the average reported savings on bundled home and auto insurance is $595.
If that's not enough to make you want to join Costco, remember that it also continues to serve its legendary hot dog and soda meal for just $1.50.
3. You want the best store brand products
Costco's Kirkland Signature brand has earned an excellent reputation for high quality that Sam's Club's own Maker's Mark brand simply hasn't. That doesn't mean Sam's Club's brand isn't good; it's just that Costco has focused a lot of effort on making Kirkland products just as good or better than many name brands.
Costco extends this quality to other products, too. Its gas is rated as a top-tier fuel, and Consumer Reports ranks Costco's furniture second out of all online furniture stores, while Sam's Club is ranked sixth.
Another great benefit of Costco
If you're already a Costco member or looking to sign up for membership, it's worth considering the Costco Anywhere Visa® Card by Citi. It's the official store credit card for members, and it comes with tons of additional perks, including:
- 4% cash back on qualifying purchases of gasoline
- 3% back on travel and restaurants
- 2% cash back on other spending in Costco stores and at Costco.com
- 1% on other eligible spending
Of course, you don't have to sign up for a Costco credit card to make membership worth the price, but some members make the most of their membership by earning cash back with the card.
My family shops regularly at Costco, and with food prices up 25% from 2019 to 2023, I don't expect us to change that habit anytime soon. Now, if I could just talk my wife into grabbing a cheap hot dog and soda for a date night, I could use Costco to save on our monthly eating-out budget as well.
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