What is making Costco so expensive?

[Anonymous]

I don't have a Costco membership, but have started to buy Costco and Sam's Club items from Boxed.com. It is interesting how little food I seem to get from a $200 order, though I am buying expensive items like nuts, maple syrup and olive oil. I am surviving by cutting out snacks, restaurants, and items that seem to be subject to price gouging. And making even more of my food from scratch. It is all a bit annoying.

[Anonymous]

They have the cheapest prescription eye glasses. Everyone in our family wears glasses. Savings from that alone more than pays for our annual membership.

[Anonymous]

Anonymous wrote:I don't have a Costco membership, but have started to buy Costco and Sam's Club items from Boxed.com. It is interesting how little food I seem to get from a $200 order, though I am buying expensive items like nuts, maple syrup and olive oil. I am surviving by cutting out snacks, restaurants, and items that seem to be subject to price gouging. And making even more of my food from scratch. It is all a bit annoying.

Probably because a lot of your money is going to the boxed.com middleman.

[Anonymous]

Anonymous wrote:I wish I read this before I signed up last week

It all depends upon what you are buying.

[Anonymous]

We bought a boatload of butter for 12 dollars. And eggs was 5 dollars. That is super cheap to me!

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't have a Costco membership, but have started to buy Costco and Sam's Club items from Boxed.com. It is interesting how little food I seem to get from a $200 order, though I am buying expensive items like nuts, maple syrup and olive oil. I am surviving by cutting out snacks, restaurants, and items that seem to be subject to price gouging. And making even more of my food from scratch. It is all a bit annoying.

Probably because a lot of your money is going to the boxed.com middleman.

Some of the prices are exactly the same (I checked at Costco.com). Others are maybe $2 more. But still better than the grocery stores for some items. I do look up prices at Giant, etc. when comparing unit costs. Fortunately, grocery store prices can easily be checked online. I used to just buy all my groceries at the closest grocery store, but those days feel long gone.

[Anonymous]

Anonymous wrote:Pistachios prices have gone up because of increased demand due to the Dubai chocolate craze and a bad crop year.

Exactly this.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Pistachios prices have gone up because of increased demand due to the Dubai chocolate craze and a bad crop year.

Exactly this.

I really like pepitas - they have doubled in price most everywhere. I read that most are grown in China.

[Anonymous]

Tariffs.

Even if the food is grown in the US, packaging may be made in China.

[Anonymous]

You are right to be worried! Thanks to this administration, unexpected inflation is showing up whether in the form of tariffs, lowered labor supply etc. Official data hasn't shown it yet, but the markets are waiting for it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I wish I read this before I signed up last week

It all depends upon what you are buying.

100%. For example, if you buy loaf bread, you can get two loaves for what one loaf costs in the grocery store. If you buy chips, you can get a giant bag for the price of a regular bag or even less in some cases. The apple price per pound is often lower than grocery store sale price.

[Anonymous]

Costco online prices are usually higher than in store.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I wish I read this before I signed up last week

It all depends upon what you are buying.

100%. For example, if you buy loaf bread, you can get two loaves for what one loaf costs in the grocery store. If you buy chips, you can get a giant bag for the price of a regular bag or even less in some cases. The apple price per pound is often lower than grocery store sale price.

This. If you are being ripped off at Costco it’s because you are being tricked by the shiny impulse purchases and don’t actually know what staples should cost. I buy the same things over and over again at Costco and I know exactly what they cost at the grocery store and if it’s a good deal or not.

[Anonymous]

Anonymous wrote:We’re in CA. I haven’t seen recent price increases. Costco is far far better than Safeway, Lucky, Nob Hill etc

You guys have H Mart, the best store. I am so jealous bc I am far from all of them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm not sure I get this thread. Costco makes its money on the membership fees and sells most items at a very low gross margin particularly compared to WalMart or Target. That's not to say that every single thing is cheaper at Costco or that you cannot find a lower quality alternative elsewhere that will meet your needs but generally Costco delivers value.

Costco is a publicly traded company beholden to a Board of Directors and major shareholders. Costco, therefore, must squeeze out every dime it can, so if they have to charge $50 for a bag of pistachios and up the membership fee to $200 they will do so because the shareholders demand it to be so.

Costco is indeed a publicly traded company which means its financial information is public information.

If you think that Costco "must squeeze out every dime it can" from members, you frankly have no understanding of Costco as a company or what has made it a great business.

I promise you Costco is not squeezing its members making a mere $7 billion of net income on $250 billion of sales (< 3% margins) in 2024.