Top 5 Top 5ive Warehouse Club BuysBy Stacey Bradford
Reporter, SmartMoney.com
EVER WONDER IF that 48-ounce bottle of Wishbone Classic Italian salad dressing is really a good deal at your favorite warehouse club store? Rest assured you're getting a fair price. At Costco, for example, all items are priced just 8% to 15% above wholesale, says Michael Clayman, editor of trade publication 'Warehouse Club Focus'. That's a significant savings over full-priced supermarket and super-center stores like Wal-Mart where items can sell for as much as 22% to 27% above wholesale.
1. Staples
Items: Milk, eggs, butter, cheese
Reason to Buy: 10% to 20% discount
When it's time to stock your refrigerator with the basics, head over to your local warehouse club store. Why? Staples including milk, eggs, butter and cheese are priced 10% to 20% below supermarket prices, says Teri Gault, founder of The Grocery Game. That's a great deal since these are items you won't typically find a coupon for in your local paper, she says.
In some cases, the savings can be even bigger. At a Sam's Club location in Secaucus, N.J., a one-gallon jug of Byrne Dairy 1% milk sells for $2.09. At a ShopRite in Chatham, N.J., the generic equivalent goes for $3.69, or 43% more. You may not be able to put your kids through college on the savings, but over time it will certainly buy them new soccer cleats.
Items: Milk, eggs, butter, cheese
Reason to Buy: 10% to 20% discount
When it's time to stock your refrigerator with the basics, head over to your local warehouse club store. Why? Staples including milk, eggs, butter and cheese are priced 10% to 20% below supermarket prices, says Teri Gault, founder of The Grocery Game. That's a great deal since these are items you won't typically find a coupon for in your local paper, she says.
In some cases, the savings can be even bigger. At a Sam's Club location in Secaucus, N.J., a one-gallon jug of Byrne Dairy 1% milk sells for $2.09. At a ShopRite in Chatham, N.J., the generic equivalent goes for $3.69, or 43% more. You may not be able to put your kids through college on the savings, but over time it will certainly buy them new soccer cleats.
2. Spirits
Items: Wine, beer, liquor
Reason to Buy: 20% discount
Who needs a sommelier when you can just go to your local warehouse store? Costco and Sam's Club both boast world-class wine buyers that individually select every bottle on store shelves for both taste and value. (Sam's Club's buyer even holds the highly coveted title "Master of Wine.") "You know going in that you're not only getting a good price, but you're also getting a great product," says Jon Hauptman, a retail pricing expert with Barrington, Ill.-based consulting firm Willard Bishop. (Here are more places to save on wine.)
You'll also find bargains on distilled spirits and beer. Absolute Vodka sells for $31.09 at a Sam's Club store in Secaucus, N.J. That's more than a 30% savings over a local retailer in Manhattan. The only caveat is that you may not find the same brands available each week, warns Supermarket Guru Phil Lempert. But if you're buying for a party, chances are your guests won't even notice what you're pouring.
Even better, you don't have to purchase a membership to buy alcohol in one of their locations. Click here for details.
Items: Wine, beer, liquor
Reason to Buy: 20% discount
Who needs a sommelier when you can just go to your local warehouse store? Costco and Sam's Club both boast world-class wine buyers that individually select every bottle on store shelves for both taste and value. (Sam's Club's buyer even holds the highly coveted title "Master of Wine.") "You know going in that you're not only getting a good price, but you're also getting a great product," says Jon Hauptman, a retail pricing expert with Barrington, Ill.-based consulting firm Willard Bishop. (Here are more places to save on wine.)
You'll also find bargains on distilled spirits and beer. Absolute Vodka sells for $31.09 at a Sam's Club store in Secaucus, N.J. That's more than a 30% savings over a local retailer in Manhattan. The only caveat is that you may not find the same brands available each week, warns Supermarket Guru Phil Lempert. But if you're buying for a party, chances are your guests won't even notice what you're pouring.
Even better, you don't have to purchase a membership to buy alcohol in one of their locations. Click here for details.
3. Pharmacy
Items: Generic drugs
Reason to Buy: Up to 50% off.
No need to cross the border to buy affordable medications. According to Gabriel Levitt of PharmacyChecker.com , a Web site that compares prices, you can purchase generic drugs at a warehouse club store for up to 50% less than at most other pharmacies. While the savings on each pill will differ, Costco says that it sells its no-name pills for just 3% more than cost. True to their word, we found Lisinopril, a popular generic blood pressure medication for $15.29 (100 pills, 20 mg) at Costco. It went for $36.63, or 58% more at DrugStore.com.
Also, just like with liquor, you don't need a membership card to buy your prescription meds at Costco or Sam's Club. You will, however, need it for everything else, including over-the-counter remedies.
Items: Generic drugs
Reason to Buy: Up to 50% off.
No need to cross the border to buy affordable medications. According to Gabriel Levitt of PharmacyChecker.com , a Web site that compares prices, you can purchase generic drugs at a warehouse club store for up to 50% less than at most other pharmacies. While the savings on each pill will differ, Costco says that it sells its no-name pills for just 3% more than cost. True to their word, we found Lisinopril, a popular generic blood pressure medication for $15.29 (100 pills, 20 mg) at Costco. It went for $36.63, or 58% more at DrugStore.com.
Also, just like with liquor, you don't need a membership card to buy your prescription meds at Costco or Sam's Club. You will, however, need it for everything else, including over-the-counter remedies.
. 4. Prepared Foods
Items: Rotisserie chicken
Reason to Buy: Birds tend to be large and are cooked fresh.
It's difficult to compare prices on prepared foods. Yet, Costco has a cult following for its rotisserie chicken. The company sells 30 million of them eachyear. What's so special about their poultry? A company spokesman explains that each bird starts off weighing at least 4.4 pounds, cooks down to a minimum of three pounds and sells for just $4.99. Each one is roasted fresh every two hours and if it isn't sold within that window, the item is taken away and used for another purpose. (Think chicken pot pie.) At Sam's Club they sell for $4.88, but the company won't divulge how much each chicken weighs.
5. Gasoline
Item: Unleaded gas
Reason to Buy: Market discounts are quickly passed onto customers.
When oil prices are falling, you'll see lower prices turn up at a warehouse store's gas station faster than at a local pump, says Warehouse Club Focus's Clayman. Why? Stores like Costco and Sam's Club go through so much unleaded that they simply need to buy it more often. When prices are dropping, they can pass along those lower prices quicker than the competition.
But watch out: When the price of oil goes up, prices for a gallon of unleaded spike faster than at a local pumping station. "It's a misnomer that they lose money on gas," says Clayman. So you just want to make sure you're watching the market and not assuming you will always pay less at the warehouse store. Check out average prices for gasoline in your area.
Items: Rotisserie chicken
Reason to Buy: Birds tend to be large and are cooked fresh.
It's difficult to compare prices on prepared foods. Yet, Costco has a cult following for its rotisserie chicken. The company sells 30 million of them eachyear. What's so special about their poultry? A company spokesman explains that each bird starts off weighing at least 4.4 pounds, cooks down to a minimum of three pounds and sells for just $4.99. Each one is roasted fresh every two hours and if it isn't sold within that window, the item is taken away and used for another purpose. (Think chicken pot pie.) At Sam's Club they sell for $4.88, but the company won't divulge how much each chicken weighs.
5. Gasoline
Item: Unleaded gas
Reason to Buy: Market discounts are quickly passed onto customers.
When oil prices are falling, you'll see lower prices turn up at a warehouse store's gas station faster than at a local pump, says Warehouse Club Focus's Clayman. Why? Stores like Costco and Sam's Club go through so much unleaded that they simply need to buy it more often. When prices are dropping, they can pass along those lower prices quicker than the competition.
But watch out: When the price of oil goes up, prices for a gallon of unleaded spike faster than at a local pumping station. "It's a misnomer that they lose money on gas," says Clayman. So you just want to make sure you're watching the market and not assuming you will always pay less at the warehouse store. Check out average prices for gasoline in your area.
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