topic Re: Costco: Most Members Don't Shop There That Much in Community Chat

Costco: Most Members Don't Shop There That Much

handygal2 — Wed, 20 Sep 2017 13:55:36 GMT

According to this article in USA Today, Costco depends more on membership fees than on shoppers, to make a profit.

I was surprised to learn that 75% of its profits are from membership fees. One third of their customers pay $120 for the Executive membership. (They also spend much more money at Costco than the Gold Star $60 members do).

Costco's business model is similar to gym memberships, where people join with good intentions, but then most don't take advantage of the services. The gym still makes a good profit catering to those who do, while still collecting the membership fees from everyone.

Here's link:

https://usat.ly/2w2XPR1

Re: Costco: Most Members Don't Shop There That Much

momtochloe — Wed, 20 Sep 2017 14:01:24 GMT

Thanks for this article @handygal2. I am one of those people that don't visit the store very much anymore now that it's just me. When I was taking care of my mom I used to go there probably every other week. I keep the membership because I get both my house and car insurance through them plus I buy my gas there along with their version of Prilosec. I still look longingly at their ads but then have to remind myself I am only shopping for one now and I really don't need two 64 oz. jars of Hellman's . . .

Re: Costco: Most Members Don't Shop There That Much

Sooner — Wed, 20 Sep 2017 14:02:13 GMT

I have wondered if those stores like that are becoming less popular. We have a lot of options now and they don't offer as many choices.

We hardly ever go to Sam's now, and have never had Costco in this area.

Re: Costco: Most Members Don't Shop There That Much

faeriemoon — Wed, 20 Sep 2017 14:03:28 GMT

We have an Executive membership and shop there often. If I didn't shop there I am certain I wouldn't renew the membership each year.

It must be like gym memberships; people sign up but don't go.

Re: Costco: Most Members Don't Shop There That Much

BirdieGal — Wed, 20 Sep 2017 14:03:52 GMT

We actually do spend quite a bit at Costco or what we jokingly refer to as the $500.00 club.

We we have an Executive membership and sometimes it pays off quite nicely. Like last year when we had all new carpet installed through their program (local well known design store) that cost thousands, or when we buy jewelry. Other times what we spend ends up paying for the membership.

We don't buy a lot of food there simply because it is just the two of us now and so many of the products come in huge quantities. We have been buying these gorgeous rib cap steaks. We always buy our coffee pods there. Batteries as well.

Re: Costco: Most Members Don't Shop There That Much

chrystaltree — Wed, 20 Sep 2017 14:05:01 GMT

Most know people that, even people who get caught in the idea, know that they aren't really going to shop there often. Perhaps not at all. The idea hooks people in. Exactly like fitness centers. I'm was one of those people. Way back when the kids were young. I imagined all the all the money I would save if I bought 50lb jars of mustard and toilet paper by the kilo...lol And then I realized that buying in bulk didn't mean I was getting a bargain. Wandering around a wharehouse actually cost us more money because we would buy stuff we neither needed nor wanted just because it was there. It was entertainment for my parents. They'd spend a whole morning at Costco and pick up all manner of stuff and then they'd give it away to people because they didn't need huge quantities of anything. I don't know if they are still as popular as they were.

Re: Costco: Most Members Don't Shop There That Much

dex — Wed, 20 Sep 2017 14:12:27 GMT

Our costco is always really busy but we only shop there twice a month.i would be shocked if Costco started closing some of its stores.I do prefer to buy smaller amounts of food products these days and I can shop sales in others stores and have less waste.

Re: Costco: Most Members Don't Shop There That Much

itsmagic — Wed, 20 Sep 2017 14:14:59 GMT

We have a new Costco opening next month in our area. Costco has a bunch of kiosk set up around town selling memberships. I've been wavering on whether to join. We have had a Sam's for several years and I joined it for about a year when it first opened but found that with just the two of us I wasn't really shopping there that much.

Re: Costco: Most Members Don't Shop There That Much

Lucky Charm — Wed, 20 Sep 2017 14:17:09 GMT

We went into one with a temp pass or whatever-- one time. I'm not interested in buying in bulk for anything. Our primary residence is a tiny cottage. (I keep my turkey roasting pan at my sister's house!)

I wanted to see their selection for organic products, vegetables, fruits, cleaning products, etc. It was dismal. Maybe it was the one that we went to? Perhaps they've upped the selection since.

But I'm happy with shopping my local grocery stores. I'm spoiled, we have beautiful clean stores to shop. I get everything I need there.

Re: Costco: Most Members Don't Shop There That Much

adamlambert — Wed, 20 Sep 2017 14:20:14 GMT

as a stockholder, we know that with the small markup of 5-7% they must make $ on membership fees. I also have an executive membership and go once a week for the two of us....fresh salmon and organic milk. Our 2 stores have a ton of organics!!

Re: Costco: Most Members Don't Shop There That Much

Shaunac — Wed, 20 Sep 2017 14:19:40 GMT

I live in Southern California and Costco is crazy, no matter what time of day it is or what location.

Sam's Club is always dead. That's why I have a membership there. The only thing I really buy is cottage cheese and Premiere protein shakes. Occasionally something else.

Re: Costco: Most Members Don't Shop There That Much

haddon9 — Wed, 20 Sep 2017 14:19:46 GMT

I'm not surprised but it's still interesting. I had thought about joining but we buy a lot from Amazon and are Prime members. Joining Costco would be one extra unnecessary expense.

The closest Costco is about half an hour away and one of my good friends (& she's also a neighbor) belongs. I'll go with her as a guest several times a season and stock up on mostly paper goods...this works well for me.

Re: Costco: Most Members Don't Shop There That Much

Luvitorleaveit1 — Wed, 20 Sep 2017 14:20:24 GMT

We have an executive membership as well. I too do not shop there as often as I use to when my elderly parents were home I did stock up because they had home attendants, but now it's just me and hubby so we use less so I shop there less and it gets pretty crowded in my area so I try to go when they open or as early as possible and I make a list.

I recently brought my precription eyeglasses there (my eye dr recommended Costco) and found them very reasonable I got two pair for much less than what I use to spend on one pair and they have a nice variety of frames.

Re: Costco: Most Members Don't Shop There That Much

Mj12 — Wed, 20 Sep 2017 14:20:50 GMT

@BirdieGal wrote:
We actually do spend quite a bit at Costco or what we jokingly refer to as the $500.00 club.

We we have an Executive membership and sometimes it pays off quite nicely. Like last year when we had all new carpet installed through their program (local well known design store) that cost thousands, or when we buy jewelry. Other times what we spend ends up paying for the membership.

We don't buy a lot of food there simply because it is just the two of us now and so many of the products come in huge quantities. We have been buying these gorgeous rib cap steaks. We always buy our coffee pods there. Batteries as well.

@BirdieGal lol - that's why we keep our memberships - steaks and coffee pods. Their steaks are great.

Re: Costco: Most Members Don't Shop There That Much

momtochloe — Wed, 20 Sep 2017 14:22:25 GMT

@Shaunac wrote:
I live in Southern California and Costco is crazy, no matter what time of day it is or what location.

Sam's Club is always dead. That's why I have a membership there. The only thing I really buy is cottage cheese and Premiere protein shakes. Occasionally something else.

@Shaunac your post made me laugh. Where I used to live you practically had to have a reservation to get into the place. Where I live now it's a bit more quiet but still very busy.

Re: Costco: Most Members Don't Shop There That Much

dex — Wed, 20 Sep 2017 14:24:01 GMT

@handygal2 I think the Costco shopping suits young families but they don't usually have 500 to spend on a grocery shopping trip.Costco needs to figure out and tweak their old format

Re: Costco: Most Members Don't Shop There That Much

Q4u — Wed, 20 Sep 2017 14:26:20 GMT

I was part of Costco back in the day when it was Price Club. I've always loved it and went about once a month to stock up expecially on non-perishables, but also did a job on other items. Started back in the late 70's and continued until 2011 when we moved across country. Now we're in an area that doesn't have one (unless you drive an hour and a half), but they do have a Sam's Club, which I love and go to like I did Costco. Not quite as good, but like it....

Re: Costco: Most Members Don't Shop There That Much

BirdieGal — Wed, 20 Sep 2017 14:26:51 GMT

I also forgot to add we DO buy all of our paper products there and a couple of cleaning products. They are basically the same price, or a bit less as any store but buying them in large quantities is convenient (hate to run out of TP or paper towels)

Paper towels

paper plates

cottonelle wipes

napkins

trash bags

dishwasher pods

Dawn liquid soap

Clorox wipes

Re: Costco: Most Members Don't Shop There That Much

PamelaSue72 — Wed, 20 Sep 2017 14:31:30 GMT

The closest Costco to us is about 60 miles away.

We have the inevitable WM and Sam's, but we don't shop there.

I really do wish we had a Costco; I think we'd use it.

Re: Costco: Most Members Don't Shop There That Much

jackthebear — Wed, 20 Sep 2017 14:34:16 GMT

what ever

we shop there alot

spouse buys for his biz

and we buy food, house or clothing

if you buy a membership to something and repeatedly don't use it, then that's an issue with budgeting