Why Are People So Obsessed with Costco?

LShazOz on 28/01/2023 - 08:21
Last edited 28/01/2023 - 10:41 by 2 other users

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.

Food & Grocery

Related Stores

Costco Wholesale
Costco Wholesale

Comments

  • Jimothy Wongingtons on 28/01/2023 - 08:24
    +28

    Who is obsessed with Costco?

    I’m surprised it still continues to survive in Australia tbh.

    They sometimes have some pretty cool exclusives though.

    Eg https://www.costco.com.au/Home-Improvement/Tools/Tool-Access…

    Amazon subscribe and save stacked on price matched items leaves costco for dead imo and I don’t even need to leave the house to arrange or receive it.

    • ShazOz on 28/01/2023 - 08:29
      +28

      On all 3 occasions, their car park was packed and had so many people doing shopping. That's why I am trying to understand the appeal for shopping there.

      What justifies $60 to access their products?

      • Jimothy Wongingtons on 28/01/2023 - 08:34
        +13

        Maybe for families of 4+, who have very hungry teenage boys maybe it makes sense…

        The supreme pizza from the cafeteria is also best value I ever had lol

        • lunchbox99 on 28/01/2023 - 09:57
          +30

          Their pizza is shite. I know people rave about it, but it's only slightly better than a frozen pizza in my opinion. The base in particular is poor.

          • AsSeenOnTv on 29/01/2023 - 20:40
            +7

            @lunchbox99: Are you talking about the other you take home and bake there or the one from the cafe? I agree the bake at home one is pretty bad but the cafe one is great.

            • greatlamp on 29/01/2023 - 22:11
              +1

              @AsSeenOnTv: It's the same pizza, they just have a better oven. I buy it, but it's definitely not great pizza, maybe good by American standards

              • lunchbox99 on 29/01/2023 - 23:48
                +7

                @greatlamp: Some people prefer quantity over quality. Sure its edible, but it's not good.

            • 811b11e8 on 30/01/2023 - 23:35

              @AsSeenOnTv: Bake at home is same as cafe you just need a monster oven to get it good.

        • supersabroso on 30/01/2023 - 14:13
          +4

          For those that don't know, you don't need the membership to get any of their cafeteria food, this includes the pizza.

          • newbo on 30/01/2023 - 15:16

            @supersabroso: You could tell them, "I'm going to the membership counter" and just go to the food.

          • SimAus007 on 31/01/2023 - 11:41

            @supersabroso: Are you sure you can eat in the cafeteria without membership? The last time my membership lapsed I wasn't able to get past the person at the door, but that was a couple of years ago.

            • aragornelessar on 31/01/2023 - 11:51
              +4

              @SimAus007:

              Are you sure you can eat in the cafeteria without membership?

              Some Costcos might be a bit different - Auburn food court is outside the membership checking person. Casula and Marsden Park are inside, but the membership counter is also there - so you could just tell the person that you're going to the membership counter and then walk over to the food court…

              Food court ordering kiosks (and counter) doesn't require a membership card to purchase

            • superhans on 02/02/2023 - 06:08
              +1

              @SimAus007: I was at the one in Epping yesterday and just told the person checking the receipts (who pulled me up and asked how she could help as I walked past) that I was 'just getting some food' and she was fine. No card asked for. I don't have one.

              The pizza is excellent value and not bad.

          • SonOfATightASS on 31/01/2023 - 15:52

            @supersabroso: Wow, I had no idea. Cheers.

      • shutuptakemymoney101 on 30/01/2023 - 08:50
        +22

        Diesel at my local service station today 211.9, the Costco price is currently 190.7, there's one reason straight away.

        Plenty of items at Costco that are cheaper and better quality than at Colesworth, also things that cannot be purchased anywhere else with ease.

        To best take advantage of Amazon you need an Amazon Prime subscription, they come in at $59 per year so why as an Amazon customer would paying $60 to Costco be any different and add salt to your wounds?

        • haemolysis on 30/01/2023 - 09:26
          +9

          I don’t think an amazon subscription is comparable. Whilst they both give you access to similar products and prices, one comes with unlimited next-day delivery.

        • Chandler on 30/01/2023 - 10:19
          +7

          To best take advantage of Amazon you need an Amazon Prime subscription, they come in at $59 per year so why as an Amazon customer would paying $60 to Costco be any different and add salt to your wounds?

          Whilst I understand your premise here, Amazon Prime and Costco memberships aren't really comparable. Costco membership means you can shop there (both in store and online). You can always shop at Amazon - Prime gets you free delivery as well as access to their other Prime Services (Video, Music, etc). Not sure if Amazon do targeted deals for Prime members, although would be surprised if they didn't. Prime delivery by itself can be worth the cost if you shop there often enough.

        • SimAus007 on 31/01/2023 - 11:43
          +3

          Because I have my Amazon subscription purely for Amazon Prime TV, the free delivery is a bonus for me.

        • MuddyClear on 31/01/2023 - 23:25
          +4

          Costco appeals to the following:
          - large families for bulk discount on items
          - quality of meat and fish is better
          - cheaper fuel at Costco
          - cheap eats at their food stalls
          - large selection of Asian products
          - wider selection of international products

      • kl2999 on 30/01/2023 - 11:20
        +4

        It's for people with large family and shop 200-1k+ per visit. I have never found parking is an issue at costco even on busy day too.

      • knk on 30/01/2023 - 11:25

        Honestly, grocery wise outside of some really large quantities of things you don't save shit.

        Their food service foils and glad wrap etc are great but I've just been buying the equivalent off amazon now that I let my membership lapse.

        That said, whenever I've been I end up buying clothes / shoes that are always stupidly cheap for what they are. Also got a desk chair from there that I've been using for a good 6 years and it cost something like $130. Just great value.

        With the non-grocery items I would easily save the membership costs honestly.

      • burningrage on 30/01/2023 - 19:38
        +2

        Cheap hotdogs and free softdrink refills ($2.99?) as well as cheap Mountain Dews bottles and 99c bottle of water.

        Free tastings every Saturday and Sunday (aka free meal if you are on a budget).

        These days they even have free arcade machines. It was the other day I played The Simpsons arcade next to a pinball game. Nostalgic!

        • SimAus007 on 31/01/2023 - 11:48
          +2

          Cheaper to buy hotdogs at any supermarket and throw them in boiling water for a few minutes.
          If you are into soft drinks and bottled water, they are also cheaper at a supermarket (circa 80c for 1L at Coles/Woolworths/Aldi for water).

      • Ryballs on 01/02/2023 - 11:19

        There was a traffic jam on freeway for hours when a new Costco opened here in WA.

    • meowsers on 28/01/2023 - 09:40
      +2

      Costco reported record sales last year 3.6bn with like 50 or 60 million profit.

      • Drakesy on 29/01/2023 - 14:28
        +2

        Charging full rrp for bulk goods and only make like 1% profit!?

        They've got to be fudging the numbers

        • meowsers on 29/01/2023 - 14:33
          +10

          "Costco prices products at 14-15% markup above costs. This gives it an average profit margin of just 2%, and positions the brand firmly within the wholesale market."

          • greatlamp on 29/01/2023 - 22:13
            +1

            @meowsers: Is that a quote from their Australian operations? USA margins are much lower (for costco and everyone else)

        • MrFrugalSpend on 29/01/2023 - 21:41
          +6

          they'd be spending it all on growth I'd guess - buying more and paying down assets / depreciation (instead of reporting a profit just to pay tax in Australia)…
          but yes, without the context of what they are doing with the money its hard to know for sure - but on face value it's not a great return on that turnover level no.

          • greatlamp on 30/01/2023 - 08:08
            +4

            @MrFrugalSpend: Of course! They course also be profit shifting off shore with variable "franchise fees" that conveniently send all their profit overseas.

            The USA corporate tax rate is 21%, vs 30% in Australia.

            I don't see how they could legitimately have low margins, they sell most goods at RRP

        • Bearlion on 30/01/2023 - 22:17

          Salary expenses, join their executives!

        • hayne on 31/01/2023 - 21:30

          Are you talking about NPAT or EBITDA/operating margin?

          Because Woollies and Coles also run on 2-3% NPAT margins.

          It’s well known that this sector is very competitive when it comes to margins, the way they generate meaningful profits is through sheer volume and not high margins. No, it’s not through buying Teslas for employees (not really a thing, at least post-FBT since 1986) or profit shifting (at least not for Coles and Woollies which don’t have meaningful offshore operations). It’s just the nature of the sector.

      • MrFrugalSpend on 29/01/2023 - 21:10

        Really? - That's a horrible return $50-60 million from $3.6bn!? Yikes….
        I realise $50-60m may sound like a lot to the average punter, but not in the context of $3.6bn turnover.
        If you operate on a 1.38% margin… it only takes your costs to go up by 1.4% to make a loss!!

        The money they have invested in assets they'd probably make a better return on a savings account or term deposit!!

        EDIT: I just looked it up, Australia is only 14 stores of their ~847 global stores so we are a tiny part that isn't separately reported that I could see but we are reported as part of "international: other" being less than 1/4 of total stores and that segment made ~3.4% (which is a bit better for a large company). However I see "The Australian" reported the $3.67bn Australian turnover being up 30% from the previous year. They could be spending a lot re-investing in growth locally I guess.

        • supersabroso on 30/01/2023 - 14:09
          +4

          Hardly, the small margin of profit is because they have spent the real profit on upgrades/bonuses etc. Their actual profit margin is a lot higher. A smart business knows to report small profits in Australia because that way you don't need to pay tax.

          Eg. Company gets $1M profit/year, they spend $1M on 10x Teslas for their employee's to use, now they have zero profit. No need to pay tax, and you can package this as a part of a deal with the employees to make them think that they are getting a higher income. Eg. Pay them $25k less/year to use the car.

          • MrFrugalSpend on 30/01/2023 - 18:17
            -1

            @supersabroso: I'm well aware of that, hence the comments:

            "They could be spending a lot re-investing in growth locally I guess."
            and above in the other comment:
            "they'd be spending it all on growth I'd guess - buying more and paying down assets / depreciation (instead of reporting a profit just to pay tax in Australia)…"

            Spending it on growth tends to be what we say when a business is reinvesting rather than declaring profits.

        • Korban Dallas on 30/01/2023 - 19:07

          …

          • Serapis on 31/01/2023 - 16:55

            @Korban Dallas: Don't need no membership when you have Korban Dallas multipass!

      • WhatWouldBiggieDo on 31/01/2023 - 23:32

        Interesting visualization of Costco's 2022 income statement that I came across on Reddit the other day, for those interested:

        Link

    • Guybrush57 on 28/01/2023 - 11:48
      +4

      I saw Home Improvement in your URL and thought it was merchandise from the TV show. I feel old :/

    • paul11 on 30/01/2023 - 14:38
      +1

      Signed up 4 years ago, shopped 3-4 times, found most stuff overpriced. Never renewed membership.

      • darkmoss on 30/01/2023 - 20:51
        +1

        U go girl !

    • drprox on 31/01/2023 - 07:58

      Hell even Aldi special buys sometimes leaves them all for dead! Particularly once they hit clearance time!

      I signed up to buy a nicely priced wine fridge I use to this day. That was it though went a couple of times I only liked the bagels and always grabbed a hotdog.

    • payless69 on 01/02/2023 - 04:50

      Useless tools compared to Aldi.
      We stack up on toilet paper when Colesworth has it o special…….

  • TooSerious2 on 28/01/2023 - 08:38
    +15

    We joined this year to get wife her first hearing aids. She reckons the saving was $1500. I'm collecting some spectacles today. Same $ per pair as Spec Savers, but only need to buy one pair rather than 2.

    The shopping experience is interesting, the fuel is cheap and I like the pizza, but I don't think we will be signing up next year.

      • skullster704 on 28/01/2023 - 10:26

        Dunno about elsewhere in Australia, but not in SA

      • Shoocat on 28/01/2023 - 10:39
        +1

        They sell 91, 98, diesel and high flow diesel.

        • bejahi on 31/01/2023 - 17:22

          High flow diesel, the much less viscous blend 😉

      • Aussie Paul 58 on 29/01/2023 - 09:16
        +6

        Our car (H6 Haval) requires at least 95.
        Costco don't have it but the 98 at Costco is consistantly 20 to 30 cents a litre cheaper than the best price for 95 around here.
        (Usually after discounts at Puma via RACQ)
        We also have an old Honda that is able to run on 91 but it gives substantially better MPG on 98.
        Not that I have done any precision measuring, just what I feel.
        We believe the fuel saving is worth the $60.00 for us.
        We occasionally shop there but we wouldn't be members if not for the fuel.
        The stores are pretty spread out too, so the distance that you need to drive to get the fuel discount needs to be factored in.
        We live about 15 minutes drive from the Bundamba (Ipswich) outlet.

        • MorriJ on 29/01/2023 - 14:26
          +20

          I'm a true Ozbargainer and would be filling up a mix of 98 and 91 to make the 95 min required.

          • ArskinF on 29/01/2023 - 15:59
            +2

            @MorriJ: Wouldn't the True Ozbargainer drive for hours to find the cheapest E10 and then wait for an octane booster to pop up on the Ozbargain Deals site?

          • BartholemewH on 30/01/2023 - 03:40

            @MorriJ: I understood that reference.

          • Keplaffintech on 31/01/2023 - 22:25
            +1

            @MorriJ: True ozbargainer would just use E10 which is 94 octane and close enough it won't make a difference.

          • Slippery Fish on 03/09/2023 - 07:25

            @MorriJ: That's not how that works… Ron rating is the compression to ignite the fuel, mixing 98 and 91 to equal 95 would not work like you think 😂😂😂😂🙂🙂🙂🙂😢🙂🙂🙂💪

            • kerfuffle on 03/09/2023 - 13:54

              @Slippery Fish: And you are bringing this up seven months later because?

              • Slippery Fish on 03/09/2023 - 17:19

                @kerfuffle: Gona be honest I didn't look at the date of the post but that doesn't change the validity of the comment

        • meowsers on 29/01/2023 - 14:34
          -6

          95 is just 98+91 blended at the pump.

          So if you need 10 Litres of 95 just use 6litres 98, and 4 litres 91…

          • WhyAmICommenting on 29/01/2023 - 16:51
            +1

            @meowsers: Wow, didn’t know this!

          • Zephyrus on 29/01/2023 - 20:15
            +5

            @meowsers: This is wildly untrue, otherwise how is there servos that only have 95 and not 98.

            • meowsers on 29/01/2023 - 20:36
              -2

              @Zephyrus: It depends on the station, and depends on how the wholesalers deliver it. Depending on the supplier this is done and it is dependent on sulphur content among other things. If it isn't done at the station, it is done at the depot.

              "wildly untrue" — I suggest you actually do some research or become familiar with the industry before you make wild statements.

              https://fuelsystems.gallagher.com/media/2696/pulse-blending.…

              And what I said still stands. You can create 95 octane petrol by blending 91 and 98 at a 40-60 ratio….

              • howcan on 30/01/2023 - 14:38

                @meowsers: @meowsers Do you have any further references for this, there seems to be zero info on which servos do pump blending. The link you provided says " the option to blend fuel is not currently available in Australia"?

              • rfarlz on 02/02/2023 - 02:07

                @meowsers: I'm extremely familiar with the industry, and due to the sulfur standards this isn't possible (although may be in the future). Blending grades at the pump is very common in the US, and does simplify the logistics and storage of fuel - if it was possible everyone here would be doing it as well.

                You may have confused this with additive blending - while the vast majority of fuel has additives added at the terminal when it is loaded onto the truck, additive dosing is in some cases being done with equipment on the truck while unloading. Costco even do their additive dosing at some stage on their site, but not sure if it's at the pump or when the fuel is delivered into the tank.

          • greatlamp on 29/01/2023 - 22:15
            +2

            @meowsers: It absolutely isn't. 95 and 98 have the same sulphur standards, that's why they are both 'premium'. Not possible to meet if you are mixing with 91

            • meowsers on 29/01/2023 - 22:27
              +1

              @greatlamp: These standards have been brought forward to 2024. All fuel will be 10 million PPM sulphur as of then.

              Many suppliers are already providing compliant petrol at the gate. Sulphur content does not affect the octane rating only the emissions.

              Only our domestically produced petrol - only 10% of the supply tends to be high sulfur (sulphur) content.

              • hornoscous on 01/02/2023 - 14:54

                @meowsers: 10 million parts per million? That's a lot of millions!

    • Ultimate Gattai on 29/01/2023 - 13:41
      +1

      If you need need glasses, have you ever tried Eyebyedirect? Both me and my sister have had a pretty good experience with them and it's cheaper than most walk in stores.

    • Brianqpr on 30/01/2023 - 19:10
      +1

      Can easily get cheap specs online with a prescription. Clearly.com for example have a huge range.

    • Serapis on 31/01/2023 - 16:58

      I bought a 3d printer from an OzB deal to print replacement glasses

  • elgrande on 28/01/2023 - 08:40
    +22

    I'd agree that its hard to save money at Costco (unless you just went there for the milk, eggs, BBQ chicken). However, I shop there more for their extended range of products not available at IGColesworth.

    • truetypezk on 30/01/2023 - 18:10

      It is easier to make money than to save money at Costco.
      They officially allow you to return almost anything purchased with any cards to any card. 1 single return gets your $60 back easily.

      • corgi-runner on 31/01/2023 - 19:05

        What do you mean by this?

        • truetypezk on 31/01/2023 - 20:51

          You can effectively move money from card A to B for free. As an ozbargainer it should not be hard to find a use case for this.

  • capslock on 28/01/2023 - 08:42
    +39

    Here are some reasons.
    They sell a lot of products which are exclusive to them.
    They sell the cheapest and biggest roast chicken.
    The premade party platters are popular for people having parties.
    There is novelty in buying things in bulk or large packaging.
    There is novelty in shopping for random household goods you didn't think you want or need.
    Some products are indeed cheaper than Coles or Woolies eg. the pack of 60 free range eggs.

    • djsweet on 28/01/2023 - 09:26
      +8

      There is novelty in shopping for random household goods you didn't think you want or need.

      That is a point against them in my book! I spend enough on things I need without buying stuff I don’t need!

      • hornoscous on 01/02/2023 - 15:08

        and you call yourself an ozbargainer!

    • mrvaluepack on 29/01/2023 - 16:26
      -7

      I dont think there are products that are exclusive to them. There are homebranded products, fresh cooked/baked/prepared and a lot of american made products but i wouldnt say they are all exclusive to them. You can find them all elsewhere if you know where to look.

      • ssmith3104 on 29/01/2023 - 17:49
        +8

        wrong

      • [Deactivated] on 30/01/2023 - 09:20

        where do you look?

        • mrvaluepack on 30/01/2023 - 15:19

          What you looking for?

      • magic8ballgag on 01/02/2023 - 09:29

        Correct, they are exclusive as much as the products that Aldi sell are exclusive. Amazon would be my go to choice over Costco.

    • twig on 29/01/2023 - 21:33

      For us it's exclusive items, cheaper bulk buy stuff that isn't available at Colesworth, or works out cheaper (when Colesworth isn't on sale)

  • Shoocat on 28/01/2023 - 08:46
    +12

    The big thing around here is the fuel savings, especially for cars that take 95. Costco's 98 is 25c cheaper per litre than my local 95.

    They have good meat and fish, plus some staples like flour and eggs are cheap. Their Kirkland range of frozen products (eg berries) is usually cheaper and better than what you can get at the majors.

    • jm7 on 28/01/2023 - 12:11
      +5

      Agree about the berries. The Kirkland blueberries and mixed berries are from the USA

      • try2bhelpful on 28/01/2023 - 13:24
        +2

        Team it with the Sangria. You get a drink and then macerated berries for a dessert with Greek Yoghurt.

    • AdrianW on 30/01/2023 - 04:02
      +4

      The Perth Costco is a 90km round trip from where I live - so any fuel savings are gone in petrol usage.

      I have no desire to even go and check the place out with it being that far from the northern suburbs.

  • hentabara on 28/01/2023 - 09:06
    +6

    Only few items that is actually cheap in costco:
    - fuel
    - eggs
    The rest are debatable.

    • srprd on 29/01/2023 - 10:30
      +1

      A2 milk

      • amberstyre on 31/01/2023 - 11:49

        if you can use 3.5L in a week!

        • srprd on 01/02/2023 - 11:48

          Well, people do buy 3L bottles of other milk. So any family using A2 should be able to finish 3.5L in a week, I think.

    • leelemon on 29/01/2023 - 23:13
      +8

      +chicken thigh ($10.5/kg) + breast ($10/kg)
      +water
      +kirkland dishwashing tablets ($20 for 115 pieces - works better than fairy and less messy)
      +kirkland grain free cat food
      +paper towels + toilet paper
      +cheese (parmesan + blue cheese)
      +roast chicken
      +salad greens (other fruit and veg is a bit rip, but they sometimes they have stuff that is harder to find)

      Specials are good -
      Steggles Tempura Chicken nuggets ($17.49 for 2kg - they use actual breast pieces + cheaper than the generic woolies brand per kilo)
      Last fortnight Omo laundry detergent ($33.49 for 6L)

      They also have decent flash sales. Scored 2 large tubs of metamucil for $30 the other week.

      edit:
      imo, Costco is worth it if you like bulk buying a bunch of stuff and putting it in your pantry or freezer AND you live close to one (or drive past it often) to take advantage of the fuel savings.
      Not really worth it if you have to drive 1 hour to specifically go there, or if you want to go to one place to get everything

  • foxmulder on 28/01/2023 - 09:28
    +78

    Without Costco and Aldi, you won't see the good pricing Colesworth do now.

    • parsimonious one on 28/01/2023 - 11:29
      +1

      Hard to say why someone would neg you for this comment 🤷‍♂️

    • Drakesy on 29/01/2023 - 14:29
      -3

      Debatable
      Costco is hardly pressuring colesworth

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