Why Are People So Obsessed with Costco?

I joined Costco last year and only visited this place 3 times within 9 months.

I didn't find anything special there or saved money as compared to shopping at Woolies or Coles. I think I could have saved money if I had purchased same stuff at Woolies (10% insurance discounted) or utilised flybuys offers.

To add salt to the injury:

I paid $60 to access Costco
Their staff does all the scanning and the customer is still required to queue and get it checked again at the exit.

I gave up yesterday and ended up cancelling my membership with full refund.

I don't understand why people are so obsessed with Costco and what's so special about it. Will be keen to hear people's thoughts here.

Related Stores

Costco Wholesale
Costco Wholesale

Comments

    • I totally agree. I found at Auburn (Lidcombe) it was majority Asian and the rest mostly Middle Easterners. Being packed in like sardines is one thing, but after witnessing two old Asian men engaged in fisticuffs over a parking space, and literally being rammed by another with a trolley, it just wasn't worth it no matter the savings (which IMHO are a myth anyway!)

      • -1

        Tell me you have confirmation bias without telling me

        the savings (which IMHO are a myth anyway!)

        Yeah I just imagined saving $600 on a refrigerator two days ago

        • -1

          What makes you think that somebody who isn't a Costco fanboy couldn't get the same deal from somewhere else?

          • -2

            @dcash: Imagine being too dumb to know the difference between a claim that Costco savings are real, and that Costco is the only place that offers savings

            Oh wait you don't need to imagine

            But by all means let me know where you were able to price match this particular fridge, given there's a whopping two or three other places that sell it

            Tell me more about how they'll take it back years later if I'm not happy with it

            I'll wait

            • @GrueHunter: Imagine being so dumb as to ask someone to price match a fridge, without telling them the make and model of the fridge!

    • -1

      I've been to the Ipswich, Queensland Costco. basically no asians, all white folk, also packed like sardines on a weekend. Perhaps socio-economic status is a greater predictor of Costco memberships than race??

      • -1

        When you see late model Lexus' etc in the carpark, I don't think it's socio-economic status. It's more like tight-arse status IMHO.

        • -1

          Nah, we didn't see any of the kind of vehicles that fit your description in the carpark. Lots of Toyotas, older Fords, Hyundais etc.

          • -1

            @ankor: Well, QLD is the state of bogans, isn't it? The carpark in Costco Auburn (NSW) definitely paints a vastly different picture.

            • @dcash: Like every state, the further out from the CBD, the more bogan it gets so it's not different to anywhere else.

              Ipswich has traditionally been a very bogan city, with lots of indigenous crime, DV and drug use. However, Ipswich has slowly been getting gentrified, because lots of young families can't buy decent sized houses for under 600k in the 10-15km ring from the CBD.

  • +2

    I think I visited 3 times before letting my membership lapse. Prices were mostly comparable to sale prices at Woolies and Coles, and dealing with the sort of people you find around Auburn (Sydney) was rather unpleasant, to say the very least.

    The 3rd time I visited by the time I was ready to pay, the checkout queues stretched from the front to the back of the store, so I just left the trolley where it was, left the store, and never returned.

    • The 3rd time I visited by the time I was ready to pay, the checkout queues stretched from the front to the back of the store, so I just left the trolley where it was, left the store, and never returned.

      Which store, and was it close to closing time?

      I noticed around mid last year Casula became extremely busy on weekends. Like crazy I-would-rather-be-dead-then-shoulder-to-shoulder-next-to-all-these-people busy. Even one girl who was Asian (with a White partner nonetheless) said "If I see another Asian I'm gonna….." which to me was a very weird and sad thing to say.

      I suspect for the Casula Costco in particular that higher interest rates are biting down on people around Western Sydney so they're going to Costco to bulk-buy stuff and try to save some money.

      • +3

        No, mid morning on weekdays. No way I'd even try on a Saturday. As to the Asian with white partner complaining about Asians, if you'd been talking about the Auburn store then I would have said that could have been my missus :D

        • +3

          As to the Asian with white partner complaining about Asians, if you'd been talking about the Auburn store then I would have said that could have been my missus :D

          Not sure if I'd say this is something to smile about to be honest. Being racist towards your own kind is weird and sad.

          • @Ghost47: How can you be racist towards people of your own race?!? That makes no sense at all.

            • +4

              @dcash: Much to learn you have, young padawan.

              • -1

                @Ghost47: Invest in a dictionary, you must.

            • +3

              @dcash: A lot of higher status whites have an anti-Caucasian agenda. White male Christians are the source of all the world's evils according to them.

              White countries are the only ones that discriminate against their ethnic majorities.

              • @RefusdClassification: "Higher status whites"?!? If a white person has a particular hated of white male Christians, then I'd say their problem is more one of misandry and xenophobia.

        • +4

          If I immigrated from a country to be in Australia for all the quality of life benefits and culture, and then suddenly my life in Australia very quickly started looking like my life in my old country that I deliberately took steps to change - I'd be annoyed as well.

          • @gfjh567gh3: Exactly this! My wife loves Australian culture, speaks English in public, has as many white friends as those from other parts of the world, gave up citizenship of the country she was born in to become an Australian citizen, etc. I don't think it's "weird and sad" to be annoyed at those who simply see Australia as a new outpost of their homeland, and who make zero attempt to integrate with Australia and our way of life.

  • +4

    Stuff I have tried and found good:
    - $30 birthday cake
    - Platters are good.
    - Staples like milk, potatoes, rice and some veggies like brown onions are definitely cheaper and good quality.
    - Fuel
    - Maple syrup, Peanut butter, Kimchee, Ketchup, BBQ sauce, that Japanese mayo you can find at coles.
    - replacement heads for electric toothbrush
    -Sometimes you get massive discounts on good items. I picked up a Discounted Garden shed for like $1,000 that online was
    like over $2,500.

    You can definitely get good value out of it, but you got to be selective

    • +1

      Those $30 birthday cakes at Costco are crap. They are huge but any half decent cake shop will do a much better job. Agree with everything else though.

      • Good to feed in mass 😁. But I agree, the quality is not the best.

  • +1

    I love their brownies ,tide pods and frozen tempura prawns and prawn wonton noodles
    The rest are hardly worth the trip.

    • +1

      I thought that whole eating tide pods thing was just a passing fad?!?

      • It makes laundry very clean (maybe the Tummy too)

  • +2

    Whitegoods/Electronics.

    It only takes one item you want or need and it pays itself several times over. Everything else is just a bonus.

    • If you see Ozbargain, Posts mentioning Costco are very rare. So you can get that deal elsewhere easily.

  • +1

    Depends on your spending habbits and quantities and if you are stopping for fuel there. I go there seldom to stock up on few things that aren’t essentials. What I shop for usually,

    noodle bowl/ packs
    meat when buying large quantities such as for event
    clothes
    60 pack of eggs
    fuel when costco 98 is cheaper than 95 elsewhere
    liquor when they have deals
    sandwich and other deli platters for events.

  • +3

    As pointed out already, Costco is excellent value for money if you know how to shop. Specials help too.

    I still get value even after doing lots of shopping at Aldi, Woolworths (including 2x 10% off per month and purchasing gift cards at 4% off), and Coles (lots of commbank offers), and Amazon. I get a lot of my fuel from 7/11 via the chopper too.

    If you can't find $60 in savings per year at Costco, then yeah don't buy it, but for me it only takes a few shops.

    • If you "know how to shop" I'd argue you don't need Costco.

    • What's this chopper fuel thing?

  • +1

    I’m still salty they no longer stock the Franks Red Hot Sauce 3.8L.

    Now that was a bargain 🙃

    • yeah, these are the kinda products that we wanted, so they removed them!

  • +1

    I think it's worth it if you have a big family, or space to store all of the bulk goods. That said I've got two sons (2.5 years and 4 months old) so perhaps when they're teenagers it'll be worth it.

  • +1

    I just cross-shop (Coles/Woolies/Aldi/Costco/Amazon/IGA) like most budget minded shoppers, Costco's got a few good things but not everything's cheaper so just go with whoever's got cheapest price.

  • It used to be better when Costco had "perpetual" warranty on electronics so as long you kept renewing the membership.

    • +2

      I think Costco are still the best store for returning faulty electronics outside of warranty.

  • +1

    It depends on the item. When I calculated the cost of getting kirkland cat food versus comparable brands from petcircle etc., the membership fee pays for itself over the span of the year easily. This isn't even factoring in fuel pricing and other miscellaneous purchases. You just gotta know what is worthwhile.

  • +1

    It's the perception of value and good marketing. Paying 60 bucks to be a member of a club I have no interest in joining baffles me but it seems to work for them.

    Personally I can think of little worse than visiting Costco, DFO etc where actual bargains are rare but the illusion of them is more common and irritating crowds are guaranteed. The internet is a perfectly good way to find the best price for whatever it is you want to buy.

    JB Hi-fi is a classic example of this tactic. Their prices are comparable with competitors, but big yellow signs talking about crazy prices still gets people in.

  • +2

    I've been to the Perth store once. It was packed with overweight, smelly bogans pushing trolleys stacked with processed food. If the prices were exceptional I might tolerate the plane to Bali experience but bargains were few and far between.

    • Fuel
    • Glasses and Contacts
    • Hearing Aides
    • Tyres
    • Car Batteries
    • Bakery Section
    • Platters and Chooks
    • Kirkland Crinkled chips

    Everything else is way more expensive than Colesworth\Aldi\Amazon apart the above

  • +2

    Overall, from the perspective of the user, its good to have competition and choice. I try to avoid being critical of the local grocery shopping habits of people, especially as there are factors beyond just price that might influence their decision to shop at a place.

    I assume that family size has an impact on things that people would choose to or want to buy in bulk which might be more available at some places more than others.

  • +3

    Costco. Croissants.

    Take my $60 every year.

    • Costco croissants are amazing, so buttery.

  • It should be illegal to have to pay a membership fee in order to purchase anything. Another awful American idea. Aldi is cheap and doesn't require an annual fee.

    • +1

      If you shop at Costco often enough especially with the promotions they have, the membership fee pays for itself.

      Do people not understand the principle of bulk buying doesn't apply to everyone??

      Wasn't there another thread about this a month ago??

      • everyone thinks they're the main character in their own role playing game. Doesn't matter whether someone else enjoys something else or not or finds value in something else, they're basically NPCs so they're irrelevant to what they, the main character, thinks is important in life.

  • +3

    I don't have a Costco membership but I did tag along with a neighbor of mine one day to check it out and see what was the go with it. I can distinctly say that, especially at the Casula (NSW) one that I went to, there is most certainly a specific demographic of person that does shop there. I also developed the opinion that the type of people that do go there are horrible and I personally would never shop there/have a membership. To more directly answer the question, I think it does come down to the perception that people are saving a crap tonne of money by shopping there vs the Coles/Woolies/Aldi's etc.

    • Your description is exactly how I imagine it and savings would have to be enormous (and I'm confident they are anything but) for me to even consider a visit to such a place to have that experience.

  • +1

    If you have a young babies/toddlers, nappies and formula are pretty much at sale price (compared to woolies and coles)
    If you live near a costco with fuel, rarely have to watch the price (99% of the time you are paying lower than at any other fuel station, only odd scenarios where fuel suddenly dropped by a large margin)
    If you have a large family, the bulk fresh foods are pretty decent price for the quality
    if you have a baker in the family, one of the places to buy baking supplies in bulk available to public
    Most things are cheaper per gram/ml/piece due to bulk sizes…

    The stuff that only they sell is a bonus for me since we don't get much of them…

    Very worth it for us in the end as we are near a Costco with Fuel, we have babies/toddlers for quite a few years now, and someone in the household bakes… with 2 vehicles (one commute, one dropoff/pickup) we pretty much save back the money just on fuel alone annually (likely more)

    • Just checked and Costco fuel in Sydney is less than $0.05 cheaper than my local petrol stations at the moment. That isn't worth the drive and certainly isn't worth the membership fee which would require 1200 litres to break even (assuming the $0.05 difference is constant). I suppose if you live close to it then its ok but most of us don't so it isn't worth it.

      Buying in bulk is generally a con as you will go through the stuff quicker in many cases, food and drink anyway. Its how the "buy two get a discount" specials at Colesworth work.

  • They have limited range of jewellery but its cheaper like I bought this diamond solitaire for wifey for 10K. Similar quality was easily 20% dearer across Sydney.

  • +1

    Costco is an overrated fan club.

    OzBargain, fleabay, Amazon and other bargain sniping make it redundant.

    Select ranges are incredible value. Tyres, fuel, clothing.

    Nappies are better value at Baby Bunting considering quality.

    Not so great value.
    Food items and cleaning products, if you plan, stock up on half price specials it closes the gap value wise with membership.

    • OzBargain, fleabay, Amazon and other bargain sniping make it redundant.

      Yes, but what if you are time poor and/or can't be bothered shopping in multiple places - that is the appeal of costco. They sell everything you need in one place.

      If you buy everything you need only at costco you will not be saving money, but for a lot of their customers this doesn't matter. The product price/quality is good enough.

      I expect most of their customers would never think to buy groceries from amazon, and visiting Aldi to find only 1/3 of the things they need is not convenient.

  • I wish they had a free trial or something, more than anything I'm curious…

    None all that close to me though anyway…

    • +1

      maybe go with a friend or family member that has the membership card.

    • +1

      you can get the $60 back on your way out. even if you made purchases. No questions asked

      • +1

        once

  • +1

    $250 saving on my prescription glasses alone pay for my membership after twice breaking the glasses and returning them they fixed them by the time I'd done some shopping at no charge. Not a lot of other bargains but a few items I buy there everytime I go..

    • +1

      Same with lifetime tyre rotations and tyre puncture repairs.

  • +1

    I save so much money as a single guy at Costco, love having a membership. I bought my daughter a HP laptop for school, saved hundreds. Men's Levis jeans less that half price. Tommy Hilfigur polos less than half price. I purchased my washing machine and dryer combo online and saved hundreds with free delivery. Plus cheap fuel, quality tyres, and optometry, including big savings on the actual glasses. Love the place

    • +3

      Reckon you could get the same prices or better elsewhere on all these items if you do your research. If this is not the case Costco wouldn't make any money.

  • +1

    I joined basically to get their meats and fish. Mainly their beef short ribs which are crazy marbled and smoke up to perfection.

    • Do they have still have brisket? What're the prices like?

      • +1

        Yes they have brisket too. Prices are going up but last time I was there I paid about $34/kg for the short rib.

  • Afaict

    • Petrol is cheap, between 15c and 40c/litre for me.
    • Targets mid/high level quality or brand name foods in medium to large packages at fair to good pricing.
    • Does not have much cheap/home brand food, so Costco is more expensive than Aldi, Coles and Woolworths "value" alternatives.

    Imo

    • They try to price "fairly" and you pay for what you get.
    • I usually go away disappointed, thinking i should have gone to Aldi and bought some home brand product for cheaper.
    • But if I was a "brand name" product purchaser, I think I would be a satisfied customer.
    • I looked up the Sydney fuel price, less than 5 cents cheaper than several of my local servos. Not worth the journey or time for a saving that small.

  • +1

    1: Gas (98)
    2: Baked beans (quite cheap in bulk)
    3: Caeser salad (the BEST)
    4: Juicy roast chickens
    5: The hot dogs
    6: The odd americn type frozen food you cannot get elsewhere
    7: The odd big ticket item cheap
    8: Thai rice in the 22kg bags when its on special for the wife. (like she will buy 100 kilos of it!)

    Once upon a time you could have added their toilet roll to that list but its way too expensive now. Only the gas and cheap hot doge for the kids justifies the membership really and that is getting harder to justify with fuel lock

    Most of the time all the other stuff is more expensive than the shops when its on special and i would not buy 18 kilos of flour just to save 50c

    • the canteen hot dogs in this country don't compare to those in north america, but still a good bargain for 1.50

    • +1

      gas you say, do they import that from the usa too?

  • +3

    Costco super overrated. Plus who on earth wants to waste hours in a mega mart shoulder to shoulder with a million people and a packed carpark?

    Amazon Prime, Colesworth delivery and local butcher FTW.

  • i let my membership lapsed as i haven't visited Costco for 6 months. I haven'y had the need to use, and may decide to re-join if they have a membership sale.

    Founded their birthday cakes to be extremely cheap and very tasty for the size.
    petrol was 5-10cent cheaper, but have foudned that local petrol stations were very competitve on they're pricing and you don't have to queue for 10-15mins

  • Im not Costco biggest fan but i 'see the appeal' there are a lot of shop owners buying in bulk there and people with large families

    i dont actually think it is much 'cheaper' then Coles/Aldi/Woolworths if cheaper at all but it does have a good warranty policy on electronics and probably some see exclusive deals now and 'then' i mean for $60 a year or $55 for businesses it isnt like it is 'not worth it' if you got access to one not to 'far' from you

  • it's all about the stuff in the middle, like clothes and useful furniture and such. I also didn't go as too many times either, but the chips and frozen party snacks are where it's at. You need to really know your prices before shopping here because most food is a total rip off

  • +1

    I find it easy to find savings there. Both electronics and food. I compare to woolies /Coles etc and buying in bulk for alot of products has definitely saved us money.

  • +1

    Savings in fuel costs alone is worth the membership price.

  • +1

    for me it’s about the variety and quality for the price rather than strictly the price. well it was, i’ve moved a few hours away from the nearest one now so i just sneak in for a cheeky hotdog and soda when i can these days.

  • +1

    Former Costco Member. And have plenty of friends who are current or former members for various reasons.

    Personally, I became a member shortly before I moved into my own place for the first time. And Costco helped tick off various big ticket items at a good price (TV, Pots & Pans), but also was a one stop shop for a various other household items & supplies.
    Over time though, my membership became more my friendship groups, and we would make runs to grab items which we could split, or we knew were available at Costco for a decent price. Of course there were the obligatory party runs to grab pizza, roast chickens, wings etc.

    But even that only goes so far, and after a while found Costco's price savings and exclusivity losing ground to other supermarkets.

    Still have friends who use it purely for the fuel savings (they live around the corner from the Costco), or were also making their first big move / starting a family so found it useful for that brief period of time.

  • +4

    I think Costco is pretty bad value for the majority of people, but I think they're very clever with their presentation and psychology, which often results in customer loyalty and a general belief that they're getting a good deal.

    • They do a good job of making everything visible from the outside (food, tyres, fuel etc.) cheap, which leads existing and potential customers to believe that this applies to the whole store. Throwing in the occasional genuinely good deal in store also doesn't hurt.
    • A lot of their range aren't like for like products that can be found at competitors, which makes direct comparisons difficult.
    • The warehouse presentation and bulk quantities give the impression that they're cutting all possible corners to keep prices low (Bunnings and JB know a thing or two about this).
    • By forcing customers to pay to get in, they give the feeling of being part of an exclusive club. Customers will also instinctively look for reasons to justify their investment. This includes buying more than they usually would, going out of their way to visit the store over a more convenient location, and yes, telling other people how good it is to be part of the club.
    • Same as JB Hifi, its the PERCEPTION of value rather than actual value.

  • -1

    Their staff does all the scanning and the customer is still required to queue and get it checked again at the exit.

    hahahaha, who puts up with that. Maybe they get a lot of theft, might explain the demographic who shop there. Well, the suburbs they are located in Sydney, that probably explains it….

    • The receipt checking happens in every Costco I've been in - UK, US & Australia.

  • I go to Costco once a weekend, mainly because the kids like going there to try the taste testing, second to that:

    • Fuel, not every Costco has a servo, but when it does, it's usually quite a good rate compared to the others. So people usually see the membership side there, I would say after 4-5 fill ups when the petrol price surge was on, you would get your membership value back for sure

    • A lot of the visitors either have big immediate or extended families and share bulk purchases around

    • I've definitely also seen business owners going there to stock up for their take away business or restaurant

    • Not everything at Costco is cheap obviously, but when it is, it's more competitive than Colesworth but you have to buy in larger quantities

    • They also have better returns policy. Colesworth no longer has one since covid…

    • A lot of Kirkland (Costco brand) stuff is usually on the same level or better than named brands, I believe the idea is because they have a bargaining power against a brand name, say Kellogs, and the agreement is we will stock your stuff but you need to produce Corn flakes for us under Kirkland brand, but it needs to be the same or better quality. It's not like the no frills generic, lower quality standards you expect.

    • Despite how much money you spend, their profit margin's are actually really low, about 2-3%. It's hard to say that the bulk of their profits are from memberships alone, but I'm sure it helps.

  • Because people have heard mentality…they follow the hype and many Australians are over consumers and buy way more than they need…eat more than they should.

    • +6

      Is that what you herd? Were from?

  • +1

    Costco is more like a tourist attraction for me. I only go when a friend with membership is going too, or when I have a free pass. Membership fee isn't worth it for me. I like seeing new foods that's not available at Coles etc, only issue is that everything is so big, so it's a bit much just to try.

  • +2

    At least in my opinion a lot things mentioned here without people doing the maths. Here are the facts at least how I see it:

    • Some branded products at Costco are significantly cheaper but someone who plays the supermarket special game can do equal or in many cases better.

    • Costco Generic brands are good value but only if the large quantities suit you. I think the tiny value gained is lost through throwing leftovers in the bin. No family runs that perfectly surely.

    • For most people the drive to costco negates the savings unless you already have a reason to go to Costco.

    • Costco has a lot of specialty food you can't get anywhere else, but most of it is very unhealthy, full of sugar, high fructose corn syrup etc.

    • If you don't have strict meal plan for Costco food, you'll likely just have to freeze a lot of food which ruins the quality and freshness in my opinion.

    • Anyone shopping at Aldi/Woolies/Coles and making use of specials are going to save a lot more money then someone who shops primarily at Costco. So basically the only way to legitimately incorporate Costco and save the most amount of money is if you can visit Aldi, Woolies, Coles and Costco without wasting all your fuel and time as well as playing the rewards card game and I doubt 99.9% of people can do that. The exception being those who make their membership fees back buying appliances from Costco but only specific items are genuinely worth the saving anyway.

    And just an observation I had at costco… there is a higher percentage of obese people and everyone else seems to be in a race to become an obese person based on their shopping trolleys..

  • +2

    As a single person, I had the membership for a few years but the novelty of the occasional "unique" product wore off for me, and I didn't need items in the sizes or quantities they were offerring. I found myself going there just to get the hot food and samples haha!

    No longer a member, and only miss it occasionally, but fairly content without it.

  • i joined for the meat and still just go to my local butcher complete waste of money for me tbh

  • +1

    Poppycock

  • The 60 dollars and long queue at the counter pull me off.

  • I understand what you're saying and it really isn't for everyone, but I'm maintaining my membership:

    Parking can be a pain at their Perth airport store at peak times but it's got better since they opened their 2nd Perth store.
    Their petrol and diesel is the cheapest in WA - consistently. Paying at the pump is a bonus too.
    Some of their food is very high quality - meat, cheese, eggs, seafood - although not always the cheapest.
    Much of the things that they sell can be cheaper at Aldi, but not always.
    I like that they have a lot of stuff that's made in the US and not by the CCP in China.
    They always seem to have great deals on TVs and some other consumer electronics. Not something you'd buy every day but good to know if you're in the market.
    Their airport store is 15 mins from my home and is located on Tonkin highway, and I'm often driving past it so easy to stop there to get fuel or to shop. If it wasn't so convenient, I'd probably reconsider my membership.

    • -1

      Made in the USA? No. Thank. You. I want my stuff to last.

      • +1

        Whatever. Floats. Your. Boat.

  • Because I walk in and walk out with everything I need for a party, the week's groceries and good quality clothes.

  • Same reason people love Aldi. They think they are clever and part of a special group. But they don't really save money and they definitely don't save any time.

    • Baked beans are 65 cents at Aldi, $1.10 at Woolies/$1.50 at Coles.

      • Coles also sell baked beans for 65 cents.

        Aldi shoppers are the best at comparing the the wrong products and saying aldi is massively cheaper when it's not.

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