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

    • +6

      FTFY, without Costco and Aldi, you won't see the half price Colesworths do now. Costco only makes it worse but thankfully their store numbers are far and few.

    • +2

      Aldi the main influence here.

    • Totally agree and a recent house move has seen me return to Aldi (it's closest and has the best carpark!). I enjoy shopping there even if the lure of treasure island sometimes gets me to part with a few more rubles than I should.

      However, I've noticed in the last 3-6 months their customer base appears on the rise, some shelves are cleared and the margin with the others has tightened. Simple supply and demand in effect sadly and we know they'd have A1 Intel running it all.

    • Yeah without Westpac and ANZ for their crap service, CBA and NAB wouldn't have any competition and their service wouldn't shine as bright. Is that the concept here?

  • Lots of the items they have are competitively priced; anyway we go with someone who has a membership

    • +5

      You can go in with Costco cash card - ask your friend to buy some for you thus you can go in by yourself - check their FAQ for more.

  • +8

    Generally the fuel savings as others have said. Also the quality of most of their food products is pretty good.

    • +16

      Yeah and they have in house butchers - unlike the major supermarkets now. Their mince is awesome

      • The mince is indeed very good at a reasonable price. Their mid-loin chops are beautiful but too thick. Their flank steak (skirt steak) is highly over-priced. Their roast chickens have traditionally been large, very tasty, and inexpensive BUT this last year not so tasty or jucy. Someone told me that they used to inject the chooks with salt water before cooking, but that they have stopped doing so. I wonder if that is correct?

        • I haven’t had a Costco chook for ages but that sounds like some sort of brining process, I wouldn’t be surprised

        • +1

          I saltwater brine my chickens at home definitely makes a tastier chook.

  • +19

    Might sign up in 30 years to pre purchase my coffin.

    • +15

      People are dying to get those…

      • +7

        Apparently they are in the dead centre of the store

        • Next to the gravy?

        • I'm only at the sneezin stage.

    • How much are the coffins?

      Friend of the family died recently and the cheapest coffin that was offered to their family was about $4k - which to me sounds ridiculous!

    • Handy if you pair this up with their lifetime returns policy

  • +5

    I agree with OP. Completely overrated except for probably fuel pricing. It might be worth $60pa if you live close enough just for the fuel saving.

    I don't think their products are better quality or any cheaper than buying on special at Colesworth.

  • +1

    I buy only a few things at Costco:

    Blueberries, bulk Beyond Burgers, maple syrup, nuts, smoked salmon, fuel, green tea,

    Almost everything else has normal retail prices. The Adelaide store is a nightmare on a weekend. Avoid at all costs. Monday night is my preferred shopping time. I take a much smaller trolley from Coles and use that at Costco, so I don't have to lug around that ridiculous Costco trolley.

    • How much are the frozen blueberries per kilo? They were cheaper years ago when I looked, but WOW/Coles have additional incentives.

      • +5

        They were $6.50/kg for a long time, and the price has jumped recently to $9.50 (from memory). They're grown in the USA and are generally good quality. Organic blueberries are ~$13.60/kg.

  • +3

    I wonder what the socioeconomic status of their customers is?

    There aren't any in Sydney in the wealthier suburbs, but that might be due to space and being late on the scene. Although a number of new Bunnings have sprung up recently, which Costco could have bid for the land.

    • +3

      Their customers skew wealthy, and have a larger basket size (purchase more per shop) than their competitors.

      Think about the products they sell and it should be obvious - bulk wagyu beef, lobster, and expensive electronics. They don't target the low income and never have, not sure why that is the impression here, in the USA Costco is for the 'middle class' which these days means the rich, the poor go to Walmart.

      They aren't in the wealthy suburbs because they don't like wasting operating expenses on rent, and their customers come to them.

      • +1

        This is accurate. One of my family works as a higher up at Costco and I've heard the one in Moorabbin near the rich beachside suburbs has by far the biggest revenue out of all the stores in Victoria.

      • +1

        This ⬆. I used to live in the US and you don't go to Costco to "save money" (you go to Walmart for that). You go to Costco to get value for money — quality at the best prices.

  • +3

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

    Whilst I hate this with a passion, they 'claim' its to ensure you have collected all the items before leaving. aka some things you have to collect from the little window after payment. While I think its total BS, this is what they claim.

    why people are so obsessed with Costco

    Ever been on the weekend? its CRAZY!

    Costco isn't always about being cheap, it has a different range of products that you can't get elsewhere.

    The meat etc, while not the cheapest is very good quality, but compared to other meats of equal quality it is cheap.

    The roast chickens used to be gross, but the change in recent years has fixed that.

    Don't touch the fresh fruit/veg, crazy priced, too large.

    My biggest issue with costco is buying everything in bulk. I would spend more money with them if everything wasn't so large needing storing/freezing etc

    • Speaking of meat do you know if they still have brisket and how much it is?

  • -2

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

    Nooo Way…. i'm cancelling right now.

    • +4

      So u took membership just for fun? Never went to store?

  • +9

    I met a neighbour coming back from Costco with a trolley full of food. I asked how much it all cost. They said $1600.

    Holy crap.

    The most I’ve ever spent at the supermarket is $120.

    People probably think they’re saving money by buying in bulk. But it’s possible they’re just buying more than they need and spending more than they need.

    • +9

      But it’s possible they’re just buying more than they need and spending more than they need.

      Just like every OzBargainer.

    • If they are stocking up on steaks they might be saving money compared to normal butcher.

    • +3

      Yeah, the two times I bought some stuff from Costco the register total was around double what I'd spend on a weekly shop at Coles or Woolies. And aside from still needing to do the weekly shop at Coles or Woolies, most of the Costco items ending up being consumed within a week or so anyway. There's just no way it represents good value for the majority of grocery items. Most of the other stuff they had (electrical, housewares and so forth) were mostly either American brands that were made in China and generally had very poor reviews online, or more premium products with a price tag to match!

  • +1

    Big chickens.

    • Big uncooked chickens

  • +28

    Costco is like everywhere else, you have to know your pricing before you purchase. They have a good range of cheese, including from overseas countries. Their alcohol is, often, cheaper than I can find elsewhere. They have name brand electrical appliances, and household products, that are often cheaper than elsewhere. You can get some good deals from the scratch and dent area and when they are dumping products they won’t be stocking anymore. Generally most things we buy there are good quality. I, also, buy from Coles, Woolworths, etc; depending on what we are buying.

    However the real kicker is if you don’t like it then return it for a refund. If you want to try something out, but aren’t sure you’ll like it, then there is no harm in giving it a shot. I’ve returned a couple of things and they had no issues with it.

    My closest Costco is a tram ride away so wandering over for a look is no biggie. If we had to drive to the middle of nowhere I might be a bit more circumspect. We went to the Epping Store, the other day, and the car parks were pretty empty and the queues for fuel pretty short. Worth a shot if that is your issue.

    Me, I wander into ALDI and buy the odd thing but I’ve never got the cult of ALDI. I do get Costco because I’ve saved more than my entrance fee over the years. Hell, I’ve probably got it from the tasters alone. There is no right or wrong here. Different horses for different courses.

  • +5

    I find that the quality tends to be better, for meat anyway. Bakery- muffins are great value. Cookies and the caramel slice+brownies arent the cheapest but they are so bloody good.

    They also have pretty insane reductions when they want to get rid of stuff. Got good baby formula for $5 (later reduced to $3), quality ham for $1 etc. just gotta watch the facebook group for when people post the deals and good luck with timing.

    Food court also great value and ours cooks their stuff pretty well.

    Also if you buy something that reduces in price during 30days, you can claim the difference back (they did say not for clearance but YMMV), done this twice so far.

  • They're not? Most my friends are obsessed with Amazon

  • Pumpkin Pie.

    • I love their pumpkin pie but almost never can find it at their Ringwood, Vic. store.

      • +2

        Needs to be closer to Thanksgiving, check back in November

  • +3

    The petrol. It can be a good 20c less than neighnouring servos.

    That means it can only take 3 full tanks to get your membership cost worth.

    • My local store is Ringwood, Vic, which poorly does NOT have a petrol facility. I feel like jiped. I did, twice go to their Moorabbin store with the intention of buying petrol. The first time, I had to wait in a queue for 20 minutes, and I found the pay-at-the-pump procedures confusing. The second time, I waited in a much longer queue that hardly mooved for 10 minutes, so I gave up and left, as were other people.

  • +11

    You tried something for 9 months and they happily refunded your membership fee in full when you didn't like it? That alone seems pretty special to me - not many companies do that.

    • +6

      Top add to that, if they had bought anything they weren't satisfied with they'll take it back too. I bought a bug zapper that wasn't zapping as well as I wanted it to - returned it about a year later, after sitting for most of that time in storage unused. Even Amazon's generous return policy wouldn't cover that

      • They’ve changed their change of mind policy for most electronic goods if I recall correctly. Only up to 90 days.

  • +4

    Their peanut butter,eggs and milk etc are way cheaper than you get from Aldi, Woolworths and Coles even when they are on special.

    If you have birthday party or gathering,you can get you $60 saving in couple of time.

    I live 5 mins away, I just go there when it is quiet.

  • +10

    It is quite simple why people are so obsessed with Costco in my opinion.

    At an elementary level, the main appeal of Costco is that it is an American chain that has been featured in numerous TV shows and movies and it provides an experience quite unlike any other — you get to push a novelty oversized trolley around a big warehouse and fill it up with things like a 60 pack of cage eggs, 5 kg of instant coffee, 60 frozen prawn dumplings (or xiao long bao if you are so inclined), a rotisserie chicken that has been bred to the point it is too large to even walk, a set of golf clubs you'll use once then store in the attic, 10 kg of hot chocolate etc. Essentially, it is a paradise for people to gorge their senses and overwhelm themselves in devilish gluttony.

    On top of what I've mentioned above, the free samples are often a good way to stuff even more crap down your gullet, and on top of that you also have the cafe that serves comically large "American sized" pizzas, $1.99 hot dogs (with drink!), $4 (or whatever price) sundaes, Korean Fried Chicken etc., the list goes on.

    It is a paradise for the greedy-gut gourmand gentlemen and gentlewomen who love to greviously gorge their great gargantuan guts and send themselves to an early grave.

    • -1

      Obviously you do not have a clue. None of this applies to me.

      • +15

        My comment is mostly written for pure pleasure, understandable if you are offended by it.

        • -8

          So your pure pleasure is to abuse people you don’t know and project your images onto them. I have never understood why some people decide to just be obnoxious.

          • +10

            @try2bhelpful: No, my pure pleasure was to write in the style I wrote it in.

            You can choose to ignore it, or choose to be offended, and you are choosing the latter.

            • -5

              @Ghost47: Interesting. So your view is that people should just ignore that they are being slurred: that they have no right to correct the record? I did not say I was offended; I said you didn’t have a clue. Presumably your defence is “only kidding”. However, I will take your permission to accept there is no veracity in anything you post. I’m sure you are used to that by now so you won’t be offended.

              • +15

                @try2bhelpful: Honestly, my comment was meant to be more satirical if anything, hence the over-the-top alliteration in the last sentence (which was also part of the "pleasurable" aspect of the comment, the alliteration itself I mean, I understand it is somewhat rude).

                Costco's bulk-buy model enables overconsumption, which is a problem and is the main thing I was calling out. "Good for you if none of it applies to you" probably should have been my first reply to you.

                I won't be offended by you ignoring my comments going forward, I said something you strongly disagree with, it's fine if you want to ignore me. You do you buddy.

                  • +7

                    @try2bhelpful: I thought it was obvious it was satire. Maybe it came across to you as abuse because you seem to like Costco a lot?

                    I have been to Costco often, and the cheaper (albeit slightly) electronics and cheap petrol are pros for shopping there.

                    Anyway, as you said, there is no veracity in anything I post, and yes, I am used to people ignoring what I say (both IRL and online), thanks for that deadly reminder.

                    • -4

                      @Ghost47: Actually one of the reasons I like Costco is because it is completely bonkers. Where else can you buy a huge blow up swan, a garden shed and a coffin under one roof. FFS they sell squid jerky, just how bizarre is that? If you haven’t seen the movie, Idiocracy, it has one of the best piss takes I’ve seen on Costco. That film is what I call good satire.

    • +3

      I did enjoy your last line. Very Monty Python.

      • +1

        An after dinner mint? It’s only wafer thin.

    • +3

      The $1.99 hot dog + drink is great value, but the dammed onion dispenser is very often empty at Ringwood. It can be hard to get a seat too, especially when people try to keep their cart with them at the tables.

      • I reckon! Especially since you can have free refills too. Did you know the hot dog and drink combo is basically inflation-proof?

        I agree it's annoying when the onion dispenser is empty, best way to get onions is to ask someone to fill it up or go for the relish as a substitute (I prefer the onions with tomato sauce and mustard). I also agree that when the food court is busy you'll have to eat in your car or find somewhere to sit like on a kerb or something. Just adds to the experience, really.

        You can pretty easily feed a family of four for under $20 in the Costco cafeteria haha. Not very healthy though.

  • +2

    if you know you know… regarding demographics definitely middle class and above, you don't see any bogans. The quality of products is far better than Colesworth and Aldi for a slightly higher price. Try their blueberry bagels. Also have a very decent cake for kids birthday parties for like 40 bucks.

    • The demographics are indeed interesting. When I attend Ringwood or Moorabbin, the percentage of Asians, Indians, middle easterners, and other people of non-caucasian origin is quite high. Some appear to be buying for large families whereas others seem to be buying for business use.

      At Ringwood 2 weeks ago, every third shopper was leaving with a 48 pack of Quiltron. Two fellows in front of me were leaving with what must have been an entire pallett worth of huge commecial size bags of sugar. I wonder what they run; maybe a commercial bakery?

      • Small businesses shop at Costco all the time. I remember seeing multiple trollies in North Lakes piled with around 50 jugs of milk, probably for a coffee shop.

  • Fuel

  • +1

    FUEL, I don't costco, and on the rare occassion I have looked at fuel prices costco has been much cheaper

  • +3
    1. for fuel - a no brainer (if you live near a Costco)
    2. for special items (eg garage shelving) which are cheaper and better quality than at Bunnings
    3. for specials on some electricals (I bought an iPad there for $80 cheaper than at Apple, which paid for my Costco membership for the year).

    But
    The crowds are horrible
    The food is horrible

    I don't do any grocery shopping there at all

    • +8

      We actually did all the calculations on the regular items we buy each month and meticulously worked out what was cheaper and saving us money.
      So (profanity) off with your delusions of grandeur.

    • +1

      The upside is that if you have Asian friends, they'll drop around after a visit to Costco and give you a whole bunch of stuff they purchased in bulk but have no way of using or storing!

      • I would say Asian family first and foremost.

    • Lol go to Ringwood Costco car park.. every second car was euro or lexus

  • +3

    Big savings on meat - Sirloin if you can be bothered to cut it up yourself is $20/kg vs Coles has it at $45/kg now.
    Beer you save around 20%
    Petrol and other things if you understand how to shop effectively there.

    • I think it's $30/kg now.
      I use to get rib eye vac packed all the time here but the prices keep. Went from $30/kg to 45/kg

  • the only reason I go is for the articulated shopping trolleys………

  • +5

    Number 1. Fuel
    Number 2. Fabulous if you are having a party
    Number 3. Meat is cheaper and great quality
    Number 4. Fish is terrific

  • Great for quality Toilet paper and also paper towels "Kirkland" is their own brand. Made in Australia.
    UHT milk
    Breakfast Cereal
    Jeans
    Nuts
    Fuel
    Macona Coffee
    Here are a few of the things that are worth looking at, the general markup is %15 which is much less than the others. You still need to know your prices

  • +9

    To add salt to the injury

    The expressions are:

    "to add insult to injury" or "to rub salt into the wound"

    • +10

      You don't need to be a rocket surgeon to know that.

  • +9

    Because I bought a TV there for hundreds of dollars cheaper than the next best price, and when it broke many years later, I walked in and they gave me a full refund. (We just walked out with another Costco TV.)

    Because on Friday I picked up a Choice-recommended Samsung fridge (RRP$1,699, next best price $1,543) for $949 delivered.

    Because their meat is fantastic.

    • They probably can afford it because they get to charge full RRP for bulk items

    • Not sure how Choice can award a Samsung fridge tbh. Unless the reliability has improved drastically in recent years?

  • definitely more expensive for a lot of items, combined with a lot of the food being of ordinary quality and you would be mad to do all your shopping there. However there are some items worth while in the fruit and veg or various items that you can't find in the coles/woolies. personally I might get a handful of items every month or two, coles/woolies/aldi are better if you can hold out for sales.

  • While I do most of our shopping across Coles/Aldi, I mainly go to Costco for only certain items that are cheaper than Coles/Woolies etc.. (or just not available brands/items) and for fuel. For both the Mrs and I the fuel alone is worth the $60 a year, paid for in a few fill-ups at most. (especially when across the road at the Ampol / 7/11, Coles Express etc.. is always at least 20-50c more expensive per litre for 98)

    And the impending heart attack from the $2 hot dog and drink lol

  • +2

    good value esp for big purchases like TVs and whitegoods, generous returns policy, fun to walk, fun to balk at the $200 steaks and $500 lobsters

  • +3

    like I said before it's worth it if you are buying their American stuff which is cheap

    $6.99 BBQ cost their loss dealer is a bargain

    If Coles or Woolies are on discount the stuff is cheaper than Costco

    But if Coles or Woolies are not on discount Costco stuff is cheaper

    some stuff you need to buy in bulk but worth it if you can finish it

    Fuel is probably cheaper but if you have a chopper then that's something else

    There produce such as meats, seafoods (not oysters they gone down hill but fish is great) are much better than Colesworth

    Food court is a bargain

  • +3
    1. Cheap but great fuel
    2. Cheap tyres/tyre service when there's a promotion
    3. Specialty items which are good quality with generous return policy (Frequent posts on car jack, ladders, chest freezer, tools, rice cooker, American brands etc etc)
    4. Personally, I've found Costco's produce to last longer than Woolies/Coles and much much longer compared to Aldi (Aldi meat also stinks like s***)
    5. Costco's signature stuff is excellent quality for the price when you're in need of something and it's not on sale at Woolies/Coles
    6. I've never tried but have heard Costco has quite the selection of seafood at the end of the year

    And all because people frequent Costco doesn't mean they're obsessed. I shop at Woolies every week but it doesn't mean I'm obsessed with Woolworths. Actually, I don't understand how people are so blind to the benefits found at Costco.

    • Agreed! I also shop at coles, woolies, aldi, fresh n save, etc.

  • +1

    As a one person household, I think it has been good value for me - although I’m not one to be obsessed

    Spotify pay for 10 months get 12
    Fuel
    Heavily discounted items
    That skincare/make up advent calendar last year was da bomb
    That cooked pizza
    Kirkland toilet paper
    Premade salads
    Great to get premade food for parties, lunches
    It’s on my way home from work so it’s convenient

    I don’t buy the meat as it’s too much for one person
    Smoked salmon at aldi is the cheapest

  • I live too far out in the desert from South Australia's only Costco to be bothered with it, but I sometimes think it must be a bit like Bunnings; a huge store selling lots of stuff I didn't know I needed ;-)

  • They sell pretty good meats and seafood.. But apart from that not much else.

  • +3

    Signed up because they had a great ladder delivered cheap. Been in twice at Marsden Park - it's so damn busy, shoulder to shoulder, slow check outs, and the food court is absolutely full

    I'm also amazed how many people go, and have literally, in the literal sense, 2 items in the trolley

    It's also about 98% southern Asian - I suspect that culturally they enjoy being packed together. Not being facetious, they genuinely prefer the little personal space and love packing in at the food court

    With Woolworths mobile discounts & gift cards, there's zero reason to shop groceries at Costco (as much as I want it to be viable!)

    • +2

      It's also about 98% southern Asian - I suspect that culturally they enjoy being packed together. Not being facetious, they genuinely prefer the little personal space and love packing in at the food court

      Oof lol.

      From my observations, Lidcome has plenty of East Asian customers and Casula has plenty of Middle Eastern and Lebanese customers. I think it just depends where the Costco is located.

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