As someone who has never visited a Costco supermarket, I am probably not the best person to write this. Though in saying that, I have been fascinated with bulk buying for years and in turn have read just about everything I can on the new addition to the Australian retail supermarket industry.
Costco is different to other supermarkets in the sense that it requires you to pay an annual membership in order to receive the discounts. This means that you are required to pay $60 to simply join Costco and be able to enter the store and purchase.
This may seem odd, but is quite an interesting strategy. The upfront payment is used as a psychological reasoning device to make you (the shopper) want to return. No one wants to waste money so this tactic can help ensure you return.
Further to this, the membership also heavily subsidises the stores basic costs – meaning the products themselves are without higher margins. This means cheaper check out totals for you.
Buying everyday items in bulk
Costco in this front is great. We all need toilet paper and cleaning agents – so why pay a premium? Costco will let you buy these non-perishable items in bulk, helping you save money and convenience.
This makes me sound like a sales pitch for Costco, though in honesty it is not – I am simply a fan of ways of not only reducing time spent on meaningless things (like shopping for toilet paper) but reducing the total costs of these meaningless things.
Careful of the impulse buys
Costco is a supermarket with devil horns. They are cleverly setup to not only sell you your groceries, but other items like electronics and clothing. This means while you are in your money saving headspace – you may use the potential savings to buy other items. Be warned!
What do you buy at Costco?
Tell us below – we are interested to learn how we can save more money using Costco and whether or not a membership is actually worth it.