Costco shoppers insist these items make the annual fee a bargain - here's why
Costco’s annual membership fee can pay for itself surprisingly quickly — if you buy the right things.
Shoppers and fans of the membership-only warehouse club say that the annual $65 fee is more than worth it if they are clever about what they put in their cart.
For many, the upfront cost of a Costco membership — which also comes in a $130-a-year version offering extra perks like early store entry — is a turn off.
While the annual fee may seem steep at first, it can be recouped many times over thanks to Costco’s bulk pricing on household essentials and food staples that mean items cost less than at most grocery stores.
The fastest and easiest way to offset the fee is to splurge on a big-ticket item — such as a TV, couch, or even an engagement ring.
Buying everyday essentials such as water filters, diapers, coffee beans, and cheese can also quickly earn back the $65 you spent on accessing the warehouse.
Experts at Business Insider compiled a list of the best Costco purchases for recouping the $65. They created a 'payback score' which measures how much of the cost could be offset by savings after one year of buying only that item at Costco instead of a traditional retailer.
A payback score of 100 means the savings cover the full fee, 200 means they cover twice the fee, and 50 means they cover half. This is a conservative estimate because it assumes you buy nothing else at Costco, which is unlikely.
The $65 price of a Costco membership is enough to deter many people from shopping at the famously discounted emporium
While the membership fee may seem steep at first, it can pay for itself many times over
The fastest and easiest way to counteract the fee is to splurge on a big-ticket item - of which Costco offers many - such as TVs, couches, or even engagement rings
One of the biggest saving items on offer is pet food.
A 38-pound bag of Blue Buffalo dog food costs $65 at Costco but about $111 at a regular store.
That means the membership fee is paid for in less than two bags. If you buy it 10 times a year, the savings are so large they cover the fee many times over. Costco also sells a well-reviewed Kirkland brand dog food for $35 for a 40-pound bag.
Next up was diapers: A large pack of Huggies diapers costs $50 at Costco but about $70 for the same 156 diapers at other stores.
With that price difference, the membership fee is covered in fewer than four purchases.
Buying one pack a month means the savings more than pay for the fee several times over. Costco also offers its own Kirkland brand diapers at an even lower per-diaper cost.
Baby formula is another big-saving buy: Costco sells large containers of Similac for $55, about $13 cheaper than at a regular store.
That means the membership fee would be covered after five purchases. Buying one a month gives a payback score of 240.
Shoppers and fans of the membership-only warehouse club say that the $65 fee is beyond worth it if you're clever about what you buy
For those not in the market for a monumental purchase, buying everyday essentials such as water filters, diapers, coffee beans, and cheese can also quickly earn back the $65 you spent on accessing the warehouse
One of the biggest saving items on offer is pet food
Costco also offers generic baby formula at roughly half the price per unit, made by the same supplier, Perrigo, that produces store-brand formulas for other retailers.
Coffee beans are another steal. Costco sells Starbucks Pike Place coffee for $8.40 per pound, compared to about $12 elsewhere.
The savings cover the membership fee after nine purchases (18 pounds). For a household drinking 30 pounds a year, the payback score is 166.
Additionally, Costco offers local and specialty coffees at lower prices than regular stores.
Cheese is also a great money saver, Costco sells 2.5-pound blocks of Tillamook cheddar for $4 per pound, about $2.60 less than typical stores.
If a household uses half a pound a week (around 25 pounds a year), the savings nearly cover the membership fee, giving a payback score of 102.
Bacon is a great way to get the most bang for your buck with a Costco membership.
Bacon preferences vary, but a similar thick-cut bacon costs $4.33 per pound at Costco versus about $8 per pound at a typical Midwest grocery store.
Cheese is also a great money saver, Costco sells 2.5-pound blocks of Tillamook cheddar for $4 per pound, about $2.60 less than typical stores
Bacon is another great way to get the most bang for your buck with a Costco membership
Another excellent way to make the most of your membership is to hit up the members-only food court - where $1.50 will get you a signature Costco hot dog and a soda
With three pounds per pack, that’s about $11 in savings per purchase, enough to cover the membership fee after six purchases. A household buying 15 pounds a year (five packs) would get a payback score of 85.
Other items with high payback scores are chicken stock, Greek yogurt, paper goods such as toilet tissue and kitchen roll, pasta, water filters, dishwasher pods, HVAC filters, contact lens solution, allergy medication, cooking oil, laundry detergent, and vitamins.
Another excellent way to make the most of your membership is to hit up the members-only food court — where $1.50 will get you a signature Costco hot dog and a soda.
Roughly one Costco combo a month (14.4 a year, to be exact) will also save you $65 compared to similar deals from chains like Portillo's or Nathan's.
