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Extra5/13/2009 9:07 AM ET

Warehouse clubs: Which is cheapest?

Even nonmembers can find deals at warehouse clubs, though the savings vary. We go comparison shopping for the best bargains on commonly bought items.

[Related content: retail, Costco, economy, shopping, budgeting]
By SmartMoney

Beyond bulk food, cavernous shopping spaces and almost guaranteed savings (an average of 30% per item, according to a recent study by "Warehouse Club Focus," a trade publication), warehouse clubs like Sam's Club, Costco and BJ's do have differences. And those differences can have big effects on how much shoppers save.

The most obvious disparity is in annual membership fees -- $50 at Costco, $45 at BJ's Wholesale Club (BJ's is offering a two-month free membership with this coupon) and $40 at Sam's Club, a division of Wal-Mart. But in-store prices and policies play a bigger role when it comes to your bottom line at checkout.

That's why it's important to compare prices on the items you need most frequently. A gallon of skim milk at Sam's Club, for example, costs $1.88, while Costco charges $2.29. Need to stock up on Secret deodorant? At BJ's, it's 81% cheaper than at the supermarket, while the savings is 67% at Sam's Club.

Another factor: coupons. BJ's is the only warehouse club to accept manufacturers' coupons, which can give its prices an edge over the competition. (There are times, however, when combining those coupons with the sales in the weekly circular can result in even better deals at your local supermarket, says Teri Gault, founder of shopping site TheGroceryGame.com.)

Nonmembers who want to try out a warehouse club also should weigh the surcharge they'll pay at checkout. Costco charges nonmembers 5%, Sam's Club tacks on 10% and BJ's adds 15%. Clubs usually permit nonmembers to purchase alcohol and prescription medications without having to pay a fee.

We went shopping for household staples and other items shoppers might regularly purchase to see which stores offer the best savings. We compared prices for 17 items from three warehouse clubs in the New York metro area against one another as well as local stores, including supermarket chain C-Town, drugstore chain Rite-Aid, pet-food purveyor Petco and beverage retailer K&D Wines and Spirits.

Because warehouse clubs tend to carry bigger sizes, prices were adjusted for a unit-by-unit comparison where necessary. We also factored in manufacturers' coupons where available, since both BJ's and local stores accept them.

The results: Even for nonmembers, warehouse clubs offer plenty of good deals, with some of the best savings on over-the-counter medications, personal care products and pantry staples.

There were exceptions to that rule, however. Most notably, bell peppers at the warehouse clubs were almost twice as expensive as at the supermarket, and prescription cholesterol medication was slightly more expensive at one of the clubs than at the chain pharmacy.

The winner? Sam's Club's prices were consistently among the best, although BJ's coupon policy made it a serious contender in many categories.

Here's our side-by-side shopping list, assembled using membership prices at a Sam’s Club in Secaucus, N.J., a BJ’s in East Setauket, N.Y., and a Costco in Brooklyn, N.Y. Nonwarehouse club prices are from New York locations of C-Town, Rite Aid, Petco and K&D Wines & Spirits. Prices were adjusted per unit for comparison.

Prices compared
ItemNonwarehouseBJ'sCostcoSam's Club

Skim milk, gallon

$3.29

$2.09 -- Savings: 36%

$2.29 -- Savings: 30%

$1.88 -- Savings: 43%

Eggs, 1.5 dozen

$2.79

$2.99 -- Added cost: 7%

$1.50 -- Savings: 46%

$2.93 -- Added cost: 5%

Strawberries, 2 pounds

$5.98

$3.99 -- Savings: 33%

$3.50 -- Savings: 41%

$3.48 -- Savings: 42%

Bell peppers, half dozen

$2.97 (on sale)

$5.99 -- Added cost: 102%

$6.99 -- Added cost: 135%

$5.88 -- Added cost: 98%

Chicken breasts, 10 pounds

$29.90

$22.29 --Savings: 25%

29.90 -- No savings

$19.70 -- Savings: 34%

Skippy creamy peanut butter, two 40-ounce jars

$14.26

$7.39 --Savings: 48%

$6.99 -- Savings: 51%

$6.04 -- Savings: 58%

Claritin allergy medication, 90-count

$69.97 (with $5 coupon)

$29.99 (with $5 coupon) -- Savings: 57%

$34.49 -- Savings: 51%

$31.74 -- Savings: 55%

Lipitor, 10-mg cholesterol drug, 90-count prescription

$255.97

Not available

$259.79 --Added cost: 2%

$250.72 --Savings: 2%

Charmin Ultra Soft toilet paper, 36 rolls

$31.22 (with 25-cent coupon)

$18.74 (with 25-cent coupon) -- Savings: 40%

Not available

$17.88 -- Savings: 43%

Tide liquid detergent, 170-ounce

$31.93 (with 35-cent coupon)

$20.14 (with 35-cent coupon) -- Savings: 37%

$20.99 -- Savings: 34%

$20.97 -- Savings: 34%

Secret women's deodorant, 4-pack

$20.96 (with $1 coupon)

$3.79 (with two $1 coupons) -- Savings: 81%

Not available

$6.83 -- Savings: 67%

Huggies diapers, 176-count

$71.11 (with $1.50 coupon)

$37.99 (with $1.50 coupon) -- Savings: 47%

$42.79 -- Savings: 40%

$36.43 -- Savings: 49%

Poland Spring water, 35 bottles

$10.19

$4.19 --Savings: 59%

$4.99 -- Savings: 51%

Not available

Pepsi, 36 cans

$14.97

$9.49 -- Savings: 37%

$9.49 -- Savings: 37%

$9.10 --Savings: 39%

Folgers coffee, 48-ounce can

$17.72 (with 50-cent coupon)

$8.49 (with 50-cent coupon) -- Savings: 52%

$8.99 -- Savings: 49%

$8.39 -- Savings: 53%

Grey Goose vodka, 1.75-liter bottle

$68.99

Not available

$59.99 -- Savings: 13%

$57.82 -- Savings: 16%

Purina dog food, 50-pound bag

$31.23 (with $1.50 coupon)

$21.49 (with $1.50 coupon) -- Savings: 31%

Not available

$22.58 -- Savings: 27%

This article was reported by Kelli B. Grant for SmartMoney.

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1 - 10 of 834
Wednesday, May 13, 2009 7:46:31 PM
i am currently a member of bj and frequent bj at gateway.  many times oj not available.  products that i like change frequently especially frozen meals.  but i still have stables i purchase.  not the typical shopper since i don't have a car and in a small household but still have savings ev en taking a $20 cab ride home after shopping.  but only done 3 times a year.  its still worth the membership.  I belonged to costco and enjoyed shopping there better which was years ago when i drove but the parking was crazy.  i wish i was near a sams but looking forward to becoming a member when i retire and move from nyc to suburban area in the far away future.  p.s. i love walmarts and shop there every time i see one out of town.
Thursday, May 14, 2009 6:19:26 AM

I agree that shopping at Costco and the like has great value, but I would add that at my Costco location, I have found the Quality of produce and meats to be much much superior to generic grocery stores. This is possibly why comparing the cost of the bell peppers and chicken breasts does not show them in a favorable light.

These items are more on a par with specialty shops.

Thursday, May 14, 2009 8:38:25 PM
I'm a little skeptical of the prices they found... here in Phoenix at the local grocery store red bell peppers are normally $1.25 each or more, realistically $1.25 is the cheapest.  So with that a half dozen is 7.50 right, which means Costco's $6.99 cost is far from 131% increase.  I think when they calculated those number, some assistant/gopher found green bell peppers on sale 3/$1 and compared those to the six red bell peppers at Costco.

Anyhow, I love shopping at Costco, the savings you get in addition to the 'return whatever for any reason, we don't care' return policy is a great reason to keep shopping there.  I would consider Sam's club but cannot bring myself to support Walmarx (no, I didn't misspell it).

Friday, May 15, 2009 6:42:30 AM

It's difficult to compare these stores without looking at their prices on items you buy and their distance from your house. Until a few weeks ago, I was a member of BJs and Costco, but after comparing prices at BJs, Costco and Sam's Club, I let my Costco membership lapse.

 

I paid significantly more at Costco for items I buy regularly than I do at BJs or Sam's, but the nearest BJs is about 40 minutes from my house. There are two Costcos and a Sam's Club within 30 minutes of my house. 

 

While generally, the prices are about the same at all three stores, each store has items that are special bargains or brands that I prefer. Costco has more ntional brands overall, but when BJs or Sam's carry the same brands, they're cheaper. BJs lets you use coupons. Sam's has better housewares. Costco cake, 'nuff said.

 

The best store for you isn't something you can pick without comparing them in person.

Saturday, May 16, 2009 9:22:18 AM

Ive stayed Loyal to Costco not only are their products higher quality but they pay their employees a great salary.  Walmart, sams club and Bj's all treat their employees like dirt.  When you shop at Costco you are supporting a company that puts it's employees before the share holders.  And their return policy is by far the best in the business GO COSTCO.........

Saturday, May 16, 2009 10:23:55 AM

You don't get it.  Costco has produce that smokes what anyone else carries, their meat products along with their fish is second to none.  It is quality and then price.  If these other clubs had Costco quality their prices would not come close.  Buy a variety of items and compare, cook them look at the fat content etc.  and you will find that Costco is not only good it is extraordinary.  Their gourmet cheese prices are also amazing.  The freezer products at Costco are better then the fresh products other outlets carry.  They trim all of their fish down to the fillet, the others leave in blood lines and belly fat.  The Kirkland tuna is amazing!  It is about quality and the eating experience you have at home.  They have outstanding clothing items and electronics with 2 year warranties no extra charge.  I could go on but you get the idea.

Saturday, May 16, 2009 3:00:52 PM
I am in agreement with all The Costco comments and yes I have belong to all 3 clubs. But due to the superior quality I now only belong to Costco. As for the member fees I found as often as I eat lunch at Costco I save that in about 2 months so every thing ells I save on is a bonus.
Saturday, May 16, 2009 7:37:41 PM
 I do wonder every year why I pay membership to shop there at COSTCO.  but... I probably recoup the fee just from 'grazing' on the free food samples every time I shop there.  You have to compare Apples to Apples!  COSTCO has Great!! quality at very fair prices.  From my experience anything with the "Kirkland" brand name is as good or better than ANY national brand period.   Last year I purchased 900 Sq. Feet of solid Bamboo hardwood flooring and had it installed by a professional all for less than just the materials alone from anyplace else.  A year later I'm still delighted.
Saturday, May 16, 2009 10:01:48 PM
When it comes down to it it's about preference.  Does your time equal money?  Costco is the most expensive of the three.  I've been in them on both coasts east and west.  Costco has a lot of high-end specialty items.  They cater to impulse buyers.  Every time I go to Costco with a friend there is always someone cooking specialty foods.  Unless you are a caterer or entertain a lot.  It's a complete waste.  I don't want to but high-end sodium laded high calorie foods.  But for staple items, BJ's is the cheapest.  They except all major credit cards plus coupons from the Sunday paper in addition to the store printed ones.  Sam's is second.  There is nothing wrong with saving money at Sam's Club.  At least they refund you part of your membership at the end of the year "if you don't save".  Sam's has specialty items throughout the year.  That's good enough for me.  I don't want to be bombarded with items that I really had no intention of buying.  And for their cookware and items as such.  Sam's is the same as Costco.  I have found better items at BJ's and had people wondering "Where did you get that?"  
Sunday, May 17, 2009 9:06:19 AM
I am a Sam's club fan but there isn't one near where I live. There is a Costco. Too expensive. I was going to BJ's for a while and I have noticed that my usual grocery list (bill) is very high. I stopped going and am back to the local grocery store. I am surprised with the savings I am making and the amounts of food I am taking home. No more bulk food for me!!!!!!!!
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