We Finally Know Which Is Better: Costco Or Sam's Club
From organic product selections to return policies to car buying benefits, here's everything you need to know in the big box showdown between Costco and Sam's Club.
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00:00From organic product selections to return policies to car-buying benefits, here's everything
00:06you need to know in the big-box showdown between Costco and Sam's Club.
00:11The first thing to consider when deciding which warehouse store to join is the yearly
00:15cost of membership.
00:17It does cost you more to belong to Costco compared to Sam's Club, but let's look at
00:21what each membership actually gets you.
00:24For the average consumer, Costco offers two membership tiers.
00:27For $60 per year, a Gold Star member receives two membership cards, one for yourself and
00:33one for another member of your household.
00:35You can shop in stores and online, and if you're unhappy with your membership, you can
00:39expect a full refund.
00:41For twice that amount, an executive membership receives all of those benefits plus discounts
00:45on additional services and a 2% annual reward on qualified purchases up to $1,000.
00:52As for Sam's Club, for $50 a year, a club member can expect discounts on purchases,
00:57access to the tire and battery center, a bonus offers program, add-on memberships, and curbside
01:03pickup.
01:04For $110 a year, a plus member receives all of that, as well as free shipping, early shopping
01:09hours, pharmacy and optical savings, and 2% back on qualified purchases up to $500.
01:17One area where Sam's Club has an obvious edge over Costco is what they accept as payment.
01:22Both in stores and online, Sam's Club accepts all four major credit cards, Visa, MasterCard,
01:28Discover, and American Express.
01:30Their stores also accept cash, checks, and debit cards.
01:33On the other hand, Costco only accepts Visa credit cards at both the warehouse stores
01:38and gas stations, as well as cash, checks from members only, and most debit cards.
01:43The website accepts two additional credit cards, MasterCard and Discover.
01:47American Express cardholders are completely out of luck at Costco.
01:51This isn't to say that you can't shop at Costco if you don't have a Visa, but if a
01:55different credit card is your preferred method of payment, this is a drawback that you should
01:59seriously consider.
02:01Many grocery stores have their own private label brand that they use to sell items at
02:05a lower price than name brand products, and Costco is no exception, as their store brand
02:11is Kirkland's signature.
02:12Kirkland has always been popular with customers, especially if you're budget-conscious or if
02:17the name brands are flying off the shelves too quickly.
02:20Back in 2018, Kirkland reportedly made up nearly one-third of all Costco's sales.
02:25As retail analyst Karen Short explained to CNN,
02:28"...it is one of the reasons people go to Costco.
02:31That's not necessarily something you can say about many private labels."
02:35Furthermore, Kirkland's lower prices have persuaded name brand companies to lower their
02:40prices in order to remain competitive.
02:42In general, Kirkland products sell for 20 percent below the competition, and that can
02:47add up to a lot of savings in just one shopping trip.
02:50"...it's one name, one brand, we put it on everything from alcohol to luggage."
02:56Not everyone has easy access to both Costco and Sam's Club.
03:00For example, you won't find either store in the state of Rhode Island.
03:08Costco is an international corporation with locations spanning the globe.
03:12That's a real bonus for the world traveler, but it's not necessarily helpful to the average
03:17As of March 2023, they have 585 locations within the United States and its territories.
03:24Nearly one-quarter of them are located in California, and the store is also well-represented
03:28in the Atlantic, Pacific, and Great Lakes areas.
03:31Sam's Club, meanwhile, has 600 locations, and they're more evenly spread out across
03:36the country.
03:37Their locations are less clustered around major urban centers, thereby offering access
03:41to a wider customer base.
03:43This includes the entirety of the Midwestern and Mountain states, some of which Costco
03:47leaves out.
03:48Both Costco and Sam's Club boast a 100 percent satisfaction guarantee to their members, so
03:54it's in the fine print where you'll find any differences.
03:57In some instances, like when it comes to alcohol or tobacco sales, both companies are restricted
04:02by state regulations, but most other sales fall outside of those restrictions.
04:07For the most part, neither chain charges a restocking fee, Costco never does this on
04:11any item, and neither does Sam's Club, though the latter has certain time periods in which
04:16specific items must be returned in order to get a refund.
04:19For instance, cell phones must be returned within 14 days, and the store doesn't accept
04:24returns on gift cards, tickets, custom-made items, prescriptions, or items purchased through
04:29their wholesale trading program.
04:32Costco has similar return policy exceptions, except that the window for all items is 90
04:37days.
04:38When buying items that were purchased online, Costco will cover the cost of return shipping,
04:42but Sam's Club will only cover this sum if the item was damaged on the way to your door
04:47or if you didn't receive the correct item.
04:50When people say that you can buy anything at a warehouse store, that's not far from
04:54the truth.
04:55Indeed, you can even buy a new or used automobile through both Costco and Sam's Club.
05:00We'll get a car!
05:01We'll get a car!
05:02We'll get a car!"
05:03Sam's Club uses the info and pricing site TrueCar as its buying service.
05:07Customers can take advantage of special deals and post-sale benefits when both buying and
05:12selling a vehicle.
05:13When you're in the market to purchase, you can save a lot of money by taking advantage
05:17of price comparison.
05:19According to LendingTree, in 2020, Sam's Club members received a $3,463 discount off the
05:26manufacturer's suggested retail price.
05:29Costco's auto program doesn't use TrueCar, so you lose some of the advantages that that
05:34service offers.
05:35As reported by 4Wheel Trends, the prices of the automobiles are fixed and non-negotiable,
05:40as Costco has already taken care of the negotiating for you.
05:44If you require additional financing, Costco can help you out there as well.
05:49As reported by MotorBiscuit, using Costco to purchase a new vehicle saved members an
05:53average of $1,000 off the MSRP.
05:57Both Costco and Sam's Club offer food courts for the convenience of their hungry customers
06:01and employees.
06:03Sam's Club Cafe hawks things like hot dogs for the low price of $1.38, as well as pizza,
06:08pretzels, yogurt cups, and fountain drinks.
06:11The Costco food court is similar, selling its hot dogs for $1.50.
06:15And you can also buy burgers and sandwiches, salads, ice cream, baked goods, and more.
06:21The menus aren't the only things that distinguish these two eateries.
06:24Sam's Club Cafes are accessible to non-members, but Costco locations were no longer allowing
06:30non-members to eat at their food courts as of 2020.
06:33Furthermore, they were always supposed to be reserved for members only.
06:37Many stores just didn't enforce this rule, as they should have, so people began to assume
06:41it was open to anyone.
06:43So if you're not yet a member, and you want to sample the food court offerings, only Sam's
06:48Club will officially allow you to do that.
06:51A survey by the Pew Research Center conducted in 2016 revealed that 40 percent of Americans
06:56eat at least some organic food.
06:58An additional 44 percent answered that they eat not too much organic food.
07:02In general, organic product sales have been on the rise for a while, and there's no sign
07:07of that stopping.
07:08When it comes to carrying organic produce, meat, seafood, and other grocery and household
07:12items, Costco wins out over Sam's Club.
07:15The chain also carries organic beer and wine and several cleaning products that use organic
07:20ingredients.
07:21If you're looking for organic at Sam's Club, you might end up feeling like a shopper who
07:25wrote about this topic on the website All Natural Savings.
07:28The writer noted the chain's lack of organic meat and produce options, as well as their
07:33poor customer service when asking about certain products.
07:36Sam's Club isn't completely without organic options, but in general, Costco is the much
07:41better option in this area.
07:43"'Cause you can literally buy everything you need from birth to death."
07:46Costco has been operating exclusive gas stations for its members since 1995.
07:51It even uses its own Kirkland Signature brand.
07:54The stations are also equipped with extra-long hoses so that it doesn't matter which side
07:59of the vehicle the gas tank is on.
08:01This helps prevent everyone from facing different ways and circling around to find a pump that
08:05you can easily pull or back into.
08:07Sam's Club also offers fueling stations, and some locations also have car washes.
08:12And if you're a Walmart credit card holder, you can use your card at Sam's Club stations.
08:17But what if you don't drive a car that has an internal combustion engine?
08:21Can you recharge your electric vehicle at either of these chains?
08:24The short answer is yes, although this availability isn't yet widespread.
08:29In 2022, the majority of Costco charging stations were located in California.
08:34The cost to charge an EV varies by location.
08:38Sam's Club and Walmart also both offer charging stations for EVs, and just like with Costco,
08:43prices vary by location.
08:46Speaking of filling up on gas or charging your EV, both Costco's Anywhere Visa card
08:50backed by Citi and the Sam's Club MasterCard offer rewards for gas and EV charging.
08:56Both cards also reward you for shopping anywhere, not just at gas stations.
09:00But when it comes to cash back rewards, Sam's Club manages to just edge out the competition.
09:06The Costco Anywhere Visa offers 4% cash back on gas and EV charge purchases, up to $7,000
09:12per year.
09:13After that, it goes down to 1%.
09:16The Sam's Club MasterCard, on the other hand, offers 5% cash back on gas and EV charges
09:21up to $6,000, after which it also goes down to 1%.
09:26As reported by ValuePenguin, in 2022, the average American household spent $131 per
09:31month on gasoline.
09:33That's less than $2,000 per year.
09:36So for the average consumer, who doesn't spend more than $6,000 per year on fuel, Sam's Club
09:41offers a greater benefit in this area.
09:44"...smells like gas."
09:47As major corporations with hundreds of locations, both Costco and Sam's Club employ a lot of
09:52people.
09:53The temperament of the staff can make or break a customer's experience within the store.
09:57And in that regard, Costco has a greater number of happy employees, hands down.
10:02According to the employment website Indeed, the average Costco cashier makes $17.64 per
10:08hour.
10:09As for Sam's Club, the same employee makes only $12.82 per hour.
10:13Glassdoor reported a closer gap with $18 at Costco and $16 at Sam's Club.
10:18Either way, Costco comes out on top.
10:20Indeed also notes that even the opticians at Costco are paid more than at Sam's Club
10:25by about $6 per hour, and 83% of Costco employees report being happy with their salaries, while
10:31only 54% of Sam's Club employees report the same.
10:35If you're the type of person who factors in fair wages and the happiness of employees
10:39at the places you frequent, this is important information.
10:43Depending on where you live, these wages may sound high for their positions, and your personal
10:47experiences may differ from national averages.
10:50So you may see differences in particular regions or locations, but on the whole, Costco wins
10:56out when it comes to employee satisfaction.
10:59So back to the main question at hand, Costco or Sam's Club?
11:03While both companies have very similar business models, there are enough differences to make
11:07one more appealing than the other to different consumers depending on their needs and priorities.
11:12If you're most concerned about your driving needs, then Sam's Club is the clear winner.
11:17If you're in the market for a new automobile, then you're much better off buying through
11:20Sam's Club than you are Costco.
11:23And if you use the Sam's Club MasterCard, you also receive better rewards on fuel and
11:27EV charging than Costco.
11:29But if groceries and other household products are your main concern, then Costco is the
11:34top dog.
11:35When using the chain's branded credit card, you earn higher rewards on in-store purchases
11:39to the tune of 2% cash back, whereas Sam's Club offers 3% for Plus members but only 1%
11:45for Club members.
11:47And Costco's wide variety of Kirkland brand items helps to keep costs down, whether you
11:51have an Anywhere Visa card or not.
11:53Plus, they have a much larger selection of organic goods.
11:57Ultimately, what it really comes down to is which store you have easier access to,
12:02what your typical shopping habits are, and what you prioritize when choosing where to
12:06spend your money.