Does Costco save you money? Let's put it to the test

Linlina on 17/02/2013 - 17:51

Hi guys…first post in the forums here. I run a website called Loaded Trolley (http://loadedtrolley.com.au/) and yes, I am a bit of a Costco fanboy.

One of the questions I get asked most about Costco is do they really save you money. This usually comes off the back of people having found a deal elsewhere, say on Ozbargain, that beats what they saw at Costco. So this usually turns into an discussion (or argument) about Costco not actually being cheap and me being a one eyed fanboy.

So, I finlly put this to the test when I asked some folks on Whirlpool forums to throw a virtual basket of goods to test Costco against Colworths. They provided me two baskets of goods they would often buy from the supermarket, so these baskets were not constructs of my alledged faboy bias.

The result…Costco was at least 15% cheaper than Woolworths and 18% cheaper than Coles. And before you ask, no I did not test Aldi as they, for the most part, carry house or private label brands. You can see the results here…

http://loadedtrolley.com.au/a-basket-of-goods-from-costco-au…
http://loadedtrolley.com.au/a-basket-of-goods-from-costco-au…

Now I did only got two baskets for the test which brings me to why I am posting here. I want to do this more often. It's a bit of work to do, so probably once a month at the most. If any of you OzBargainers have a basket of goods for me to test, submit it on the contact page of Loaded Trolley…. http://loadedtrolley.com.au/contact/

Thanks
Corey

General Discussion

Related Stores

Costco Wholesale
Costco Wholesale

Comments

  • robbyjones on 17/02/2013 - 18:36

    This was a great read and the comparisons were fair and I was a little surprised at the amount of the saving. I shop at Costco but as it is quite a way from my home I get there maybe once a month to six weeks. I spend between $500 - $900 per shop (ouch). There are some great products available at Costco that are not available at Colsworth (to use your vernacular) however the downside being you are not guaranteed they will be in stock always. I am in that "is it worth renewing my membership" group as mine is due at the end of February. What I would love to see is a specials comparison, as I am not that label concerned as long as it is a reputable brand I tend to buy whatever is on special in Colsworth and then buy up big to last awhile (toilet paper, toothpaste, etc). Perhaps you could consider a shopping list of items and buy the cheapest available (perhaps excluding generics for fairness). My guess would be the savings would be much closer and, depending on the day, may go to Colsworth. Of course to do this you would have to give the regular and special pricing as you would not be comparing the same brand.

  • neil on 17/02/2013 - 18:38
    +8

    For grocery shopping:

    Costco is cheaper on average than Woolworths/Coles if you don't time out your shops.

    Woolworth & Coles specials are way cheaper than Costco. When I had a membership, I would search OzBargain while in store and the prices just couldn't beat the specials. I got rid of my membership and instead go to nearby Vic Market which generally has cheaper prices for vegetables, fruit, and meat.

    As you posted the other day, the occasional TV deal may make it worth it.

    • deal88 on 18/02/2013 - 17:56
      +1

      This is where Loaded Trolley blog is great as you can actually find out about some of the prices before you go. Especially helpful for the seasonal gear.

      Costco also sell Levi's, Birkenstocks, kids clothes, TVs, Books, furniture, sheds………. These are where you can save some big $, and are generally a lot cheaper than retail.

    • cloudy on 19/02/2013 - 20:53
      +3

      Completely agree with you Neil, my uncle has a membership and I occasionally go, it may be a bit cheaper but I'll list the reasons why I, and I suspect most people, shouldn't get any real savings from Costco.

      Firstly, Safeway and Coles is only 3mins away from me, or 15 min walk (true ozbarg save on petrol too).
      Costco is a 35 min drive from where I live 6km away from city, but Costco is in docklands.

      Sometimes it takes up to 10 to 15 min just to get into Costco from the carpark waiting and flashing of card etc….I feel like I'm walking into the pentagon.

      To buy the bread, fruit etc u have to walk all the way to the end of the warehouse, it's like bunnings of food. I've timed the walk, it takes about 10 mins just to walk to the end, passing all the tvs, clothes, jewellary etc.

      Finally, I've done my shopping, the check out lines are massive, and even after paying, there is someone checking your receipt after u have paid.

      Yes I went on a weekend, but I shouldn't have to book in half my day 8-12 just to do some shopping.

      I can save a lot of time just going to Safeway or Coles during the week (since its so close) or weekend. As they say, time is money, unless you don't earn much, in which case ur better off buying from markets and aldi, where home brand stuff is cheaper anyway.

  • Neoika on 17/02/2013 - 18:44
    +2

    Colworths have special price for some products every week,which means I don't have to pay for their RRP in another time if I stock up them.I don't normally shop in Costco,but I think they give stable price for every product,especially food and daily necessities.For people who take advantage of weekly special products in colworths,I think they won't feel costco prices cheaper.

  • mskeggs on 17/02/2013 - 19:54
    +2

    Costco is worth it for people Who don't bargain shop. They can purchase there and know they are getting a pretty good deal. I think I can beat them by >10% over the course of a year shopping the specials at the supermarkets in bulk, and choosing generics for the things my family is happy to buy generic (e.g. Milk, bread, etc. ).
    I'd be more likely to shop Costco if they would sell a one time membership for $10 or do, so I could do a once or twice a year shop there.

    • neil on 17/02/2013 - 20:02
      +4

      Well in that respect you can sign up for a membership and then cancel within 12 month for a full membership refund.

  • berger on 17/02/2013 - 22:15
    +1

    I have not shopped much at Costco, but with what I have spent its getting close to evening the cost of the membership out.

    A mate wants a tv from there next week, and I will most likely get a laptop from there when I'm due soon.

    It's a mind game working prices out, because nearly everything is supersized.

    Oh the buffalo wings are to die for too. Tray of 15 or so for $9 cooked.

    It's worth signing up if your elderly parents/grandparents need a hearing aid, as they are cheap too!

  • RockyRaccoon on 17/02/2013 - 22:32

    One of the better things about Costco is the availability of products you cant buy here at very reasonable prices.

    Two favourites are the Smoked almonds and Salmon burgers, made from Wild Alaskan salmon (vs Tassie salmon which are fed die pellets to make them pink)

    On the other side if you look at many of the prices, the best percentage savings is on fresh produce, where we all know Colworths all are much higher than the average greengrocer/Aldi. Banana's a few weeks ago where 99c at Aldi and $2.99 at Coles etc etc

    • SomeGuyOnOzB on 02/04/2013 - 13:02

      Hi Rocky,

      Do you happen to have a list of the ingredients there, for the Wild Alaskan salmon burgers? (You've got me interested and I know someone who goes once every month or two)

  • reddragon on 18/02/2013 - 07:53
    +1

    Mrs Dragon & I both shop at Costco but we are selective. One item that we use a lot is the Medjool whole fresh dates from California which usually sell for $10/907g. This compares very favourably to the Colesworth normal price of around $20/kg. As we both eat them we get through enough packets to justify cost of membership just for this one item.

    That said, we also ruthlessly work the Colesworth specials cycles and buy our meats and fresh vegetables in the strip shops at Eastwood (NSW). Here we are blessed with a lot of Asian butchers who compete for custom by having great quality meats at really good prices.

    Even allowing our closeness to Auburn we only go there about once a month. If you are into specialised cheeses Costco do have a great range there at really good prices as well. If you you are shooting for Kraft/Norco type cheddar and the like then the Colesworth specials cycle is your friend.

    These comparisons are valuable but it really is horses for courses. More power to loadedtrolley!

  • deal88 on 18/02/2013 - 11:54

    2 months ago Coke was cheap in a 24 pack, 2 weeks ago they had changed to a 15 pack and were more expensive than Colesworth. Would love to see how the Coke price tracks at Costco.

    • berger on 18/02/2013 - 14:09

      its currently coke zero/diet coke 375ml 20 packs, 2 for $22. not the best prices, but not bad either

  • kabigon on 18/02/2013 - 13:28
    +3

    Count me as another loss-leader Woolies shopper, if I see something that doesn't get reduced much very often then I'll stock up for a while so I'm unlikely (if I've planned properly) to run out before it goes on special again. I try to not buy anything that isn't on special unless it doesn't change in price.

    I wouldn't buy fruit + veg at Woolies as I can save 2-3+ times easily buying elsewhere.

    Some weeks I may buy a lot of groceries, others I may not buy any at all.

  • retiredfeline on 18/02/2013 - 14:18

    More power to you loadedtrolley but I suspect the savings would be even higher if you factored in more fresh produce from greengrocers, who are greatly cheaper than Coolies. But that would be difficult to compare on a national basis. Your basket contains too much manufactured food and could be healthier. Incidentally this illustrates the deleterious effect of Coolies dominance of the grocery market in non-metro areas. Once the small retailers have been driven out, you pay more for fresh goods at Coolies.

  • AmericanDad on 18/02/2013 - 14:59

    I save more than the cost of my membership just by getting 3 bags of dog food from Costco (Our dogs eat a lot); thats not including the amazing but cheap laundry powder, cleaning products, sauces and food (frozen or otherwise).

    • outlander on 20/02/2013 - 23:08

      Do they sell the purina supercoat? I looked around the melbourne store, couldn't find em. I usually go through about 8kg every 2 months.

      While I was searching, I was surprised to people making off with giant towers of toilet paper.

      I don't think any comparison can be made without factoring in toilet paper, although to my untrained eye it didn't even seem that cheap.

      • berger on 20/02/2013 - 23:21

        Toilet paper didn't seem overly cheap to me too, but the section that is in is stacked up with about 20 pallets of each type, fly out the door. The other thing that seems not as cheap was tissues, But I buy a box of 32 boxes for $0.90c each locally.

  • infinite on 18/02/2013 - 19:34

    More power to the people who save and benefit from Costco, but I don't really see much benefit in Cosco for my family or myself, as we do all the fruit & veg shopping in one hit once a week at the markets. Better quality & meat is 30% cheaper, fruit & veg on average are minimum 60% cheaper. The savings can be ridiculously huge if you then buy in bulk while at the markets, or get in there and buy in bulk near closing time. I took a whole crate box of mangos (36 mangos) last weekend off one fruiterer for $4. Awesome bargain & they freeze to use later excellently.

    Rest of the stuff can almost always be had reasonably cheaper at ColesWorth when on sale, or is pretty much the same as Costco. On the upside though, Costco do have a pretty massive range of different or unique stuff at similar quality/prices as Colesworth, which can make for an interesting walk around the place.

  • virtualds on 18/02/2013 - 20:39

    I am completely satisfied with Costco. I am glad to have it in Canberra. I bought so many items from groceries to electronics, car tyres to jeweleries, chocolates, wine, cake & food(pizza & mango smoothies). Dont know whether I have saved money or not but so far I have enjoyed American shopping experience in Australia in last 1.5 year.
    Long live Costco

  • voteoften on 19/02/2013 - 01:08

    I think I may take out a membership in Melbourne when I am there (hopefully) in about 10 days. (The uncertainty is the mystery flight situation).

    I'll be there again at easter and I may or may not cancel. Just dont understand this membership business.

    What's the point?

    • deal88 on 19/02/2013 - 10:26

      I think the membership helps people feel the need to shop. I think it is smart.

      Just like when people get given free tickets, apparently about half won't bother turning up. Charge them a nominal cost and then 90% turn up.

      "Got to foot get my membership value"

  • hsk on 19/02/2013 - 08:38

    hello, do not live close enough to Costco as my nearest store - Auburn is a bit more than an hour, but found this interesting article http://www.choice.com.au/blog/2012/may/costco%20experience.a…
    And as I need to replace a dishwasher (again) do costco do large kitchen appliances? thanks

    • inlina on 19/02/2013 - 12:11

      They do have large kitchen appliances, but it is likely that you will only find one model of any given type of appliance with the exception of fridges, which they stock a few different ones but they are to cover different customer needs. From memory, they only had one dishwasher last time I was there and I cannot remember the brand.

  • Shwayne on 19/02/2013 - 15:54

    It's a billion miles away, and there's a membership fee.

    Will you factor in fuel and the fee?

    Not to mention the inconvenience of having to deal with a large warehouse such as costco.

  • imolared on 19/02/2013 - 17:14
    +1

    I signed up last year when they had a special on a Sony 55" LCD TV for $950, same model was going for at least $1250 when I checked the local shops (HN, TGG…etc).

    As a BONUS, I get lifetime warranty on the TV as long as I'm a Costco member. Not a whole lot of people knows about this Costco warranty/guarantee.

    • cloudy on 19/02/2013 - 21:05

      Thats really interesting, Where can I find info on the lifetime warranty? I just looked all over the website, and can't info on it, and I would have thought such a perk would be posted on their website.

      • inlina on 19/02/2013 - 22:43

        It comes from this on the priveleges and conditions page (http://costco.com.au/Common/PrivilegesAndConditions.shtml)….

        'On Merchandise: We guarantee your satisfaction on every product we sell, and will refund your purchase price. This is in addition to your rights under the Australian Consumer Law.'

        So long as you remain a continuous member, you can take anything back at any time if you are not satisfied.

        CG

        • cloudy on 20/02/2013 - 07:47

          I read that clause, I suspect they might give u a refund now, butiit's not sustainable and will probably be cut before ur TV dies. The clause is so general it can't be relied upon in my opinion

      • KBZ on 19/02/2013 - 23:27

        You just have to be wary as it won't be long before people abuse the system and just return it to get a newer TV.
        It happened in the US so they changed the terms.

        • Geewhizz on 20/02/2013 - 07:05

          Chat around the net suggests it's already happening on a fairly regular basis

  • mcor82 on 20/02/2013 - 13:07

    Costco has things that the other places don't have so how can you compare?

    In regards to milk and eggs and detergent thats pretty much the only thing that Costco has in common to supermarkets.

    • neil on 20/02/2013 - 13:19

      Actually, the exact opposite.

      They have bread, meat, chicken, cheese, fruit, vegetables, toilet paper, paper towels, sandwich bags, soda, sauces, Up N Go, cat litter, pet food, ketchup, ice cream, gift cards, etc. to name a few.

      • mcor82 on 20/02/2013 - 13:24

        It was more of a general statement… does Woolworth's sell couches or tennis racket? watches and gold rings? The list can go on…

        • neil on 20/02/2013 - 13:37

          I don't think you will find 2 stores where all of their product lines match up perfectly. I guess my point is Costco has hundreds of products that can be compared so it's fair to make a comparison. The focus of Corey's test was purely on grocery shopping. Couches and jewelery may be tricky but you could do another comparison test of Costco TVs/electronics vs. Dick Smith/JB/Big W.

          I mean that's what OzBargain is all about: comparing prices with other retailers to find the best bargains.

        • mcor82 on 20/02/2013 - 13:41

          Yep noted :)

          Personally i love Woolworths and Costco, Coles not so much, never really liked them

  • ironsword on 20/02/2013 - 15:23

    I'd say Costco is worth it if you live close to one (<30 mins). There's little doubt in my mind that Costco offers better value than Coles/Woolworths/IGA for brands that you're likely to recognize. You'll always get a competitive price and, in many cases, a better price per unit than other stores. I've noticed that Colsworth have increasingly pushed their 1/2 specials, especially in the last 2 months or so on specific items (I think this week WW has 50?) Unless you go into Colsworth specifically to buy the specials, in many cases these specials are on junk food, frozen food etc… instead on food that's bought more regularly. The net result is you buy stuff not on special and end up spending more on products that are expensive per unit (i.e. you succumb to the magical power of loss leaders). The other problems with specials is that they only come up when the supermarkets feel like it. If it's not on some kind of special you're almost guaranteed to be paying too much per unit for it. In contrast to this, I've found that Costco to be consistently better priced for most grocery items. Take this example for instance: Tresemme shampoo.

    Costco regular price: $0.54 per 100mL.
    Woolworths 50% off price: $0.55 per 100mL.

    Sure this isn't the typical saving you can normally expect at Costco over other supermarkets but it's a clear example of how if something is not on special at Colsworth, you're probably paying too much.

    One last point I'd make is that you have to be disciplined once you've bought what you need at Costco. All that extra food around might make you eat more erasing much of what you saved.

    • kabigon on 20/02/2013 - 16:04

      It doesn't matter to me how much percentage it's claimed I'll save by buying at colsworth, I'll always use unit price to identify a good deal. If you're blindly buying everything in a colsworth catalogue just because it's marked as 50% off, then yes you'd be better off shopping at Costco instead.

  • r3volt on 20/02/2013 - 18:48

    Still waiting for Costco to be built in North Lakes here in QLD..

    • inlina on 02/03/2013 - 17:52

      Just found out the planning decision from the minister has been delayed to 25th March so they can consider it further.

  • demiurge on 10/03/2013 - 16:55

    The biggest saving from Costco is their hearing aid. I found this out when researching for a pair for my dad. Their $2000 top of the line Kirkland Premium Aid is a rebranded Siemen's top of the line model which sells elsewhere for $8000 with government pensioner coupon. Furthermore Costco does not accept the government coupon, so my dad can use that to get a free pair for backup.

Login or Join to leave a comment
Login Join