Is a Costco membership worth the hype? We chatted with one mum who took the plunge to find out the real pros and cons.
If you’ve ever walked out of the supermarket wondering how you spent so much money on what feels like so little, you’re definitely not alone.
With all those school lunchbox snacks, the fresh fruit that disappears in two days, rolls and rolls of toilet paper, cleaning products and everything else a family seems to go through at lightning speed, grocery shopping (and bills!) can feel never-ending. That’s one reason so many families end up considering a Costco membership.
At first glance, paying an annual membership fee just to shop at a store can seem a little counterintuitive. After all, there are plenty of supermarkets where you can simply walk in and start shopping. Then there are the membership rules to consider.
The Costco membership card is linked to the primary member’s credit card and purchases must be made with a payment method that matches the account holder. Unlike some family loyalty programs, a Costco membership isn’t designed to be shared freely between friends or extended family members. Forget your membership card at home and your shopping trip could quickly become a lot less convenient. On top of all this, Costco stores can be few and far between, meaning further to travel to buy up big.
To get a real-world perspective, I spoke with Costco member Alina about why she joined, what she buys and whether she thinks the membership is worth it.
What is Costco all about?
For new members, walking into a Costco warehouse for the first time can be a bit of an eye-opener. It’s a place to stock up on groceries and household essentials, but it’s also the kind of store where you can buy a giant pack of toilet paper, a bike, a hot tub and a diamond ring all in the same trip.
Costco is a membership-based warehouse retailer, which means shoppers pay an annual fee to access the store. There are a few membership options available, with the Gold Star Membership being the most popular choice for everyday shoppers and families (more on that later).
What makes Costco different is the sheer range of products. One aisle might be stacked with fresh food and lunchbox snacks, while the next has televisions, furniture, books, toys and kitchen gadgets. Depending on the time of year, you might also find camping gear, outdoor furniture, Christmas decorations or even a garden shed.
There are also the products that have made Costco famous for being a little unexpected. Over the years, shoppers have been able to buy everything from holidays and home gyms to caskets and coffins. It’s not necessarily because people head there looking for those things; it’s more that Costco seems to have a knack for selling products you never expected to see in a warehouse store.
Finding the unexpected is perhaps part of the fun. Many people walk in with a short shopping list and end up spending time browsing just to see what’s new. One week, there might be a great deal on bikes, the next week, it could be a pizza oven or a paddleboard.
For many members, that’s what makes the annual fee easier to justify. It’s not just about buying in bulk. It’s about having access to products, prices and occasional surprises that you might not find elsewhere.
Why families are joining Costco
For Alina, it wasn’t just about saving money. “I joined because Costco has good-quality products and some unique items you can’t easily find elsewhere, especially for gifts, toys and fresh food,” she says.
That seems to be a common theme among Costco members. While the discount prices certainly attract people, many stay because of the product range.
Parents often find themselves picking up everyday essentials alongside things they weren’t expecting to find. One shopping trip might include fresh vegetables, lunchbox snacks, nappies, birthday presents, a giant pack of batteries and a few Christmas gifts tucked into the trolley as well. There may also be a whole array of new plants for the garden, a bike, a TV or a coffee machine.
Costco appears to be the jack-of-all-shops. It’s a different experience from a regular supermarket run.
Is the Costco membership fee worth it?
One of the biggest questions people ask is whether the membership fee pays for itself. According to Alina, the answer is yes. “I do think it’s worth it because they offer competitive prices, unique products and great value for families who buy in bulk,” she says.
The key word there is bulk. Costco isn’t necessarily about spending less every time you shop. In fact, many first-time members are surprised by how much they spend on their first visit.
The difference is that instead of buying one packet of snacks, they might buy three. Instead of a single pack of toilet paper, they’re taking home enough to last for months.
For families who regularly go through household essentials, that can work out cheaper over the course of the year. Of course, having enough storage space helps. Not everyone has room to store giant packs of paper towels or enough cereal to survive a small apocalypse.
What is actually worth buying in bulk?
Ask 10 Costco members what they buy and you’ll probably get 10 different answers. Some head there for the cheap petrol alone, while others love wandering the aisles in search of a good deal or an unexpected find. For Alina, a few products consistently make it into her trolley.
“It depends on your family’s needs, but I usually buy almond flour, nuts and vegetables. Many people also buy lunchbox snacks, bread and household essentials in bulk,” she says. “If you have a large family and storage space, most products offer good value. Sometimes I even buy sushi party platters.”
The lunchbox snack aisle alone is enough to make many parents stop and take notice. For families with children who seem permanently hungry, buying snacks in larger quantities can be a practical way to reduce both shopping trips and costs.
Household essentials are another popular purchase. Things like toilet paper, tissues, laundry detergent, cleaning products and paper towels are items most households will eventually use anyway.
The trick is buying products you know you’ll use rather than getting swept up in the excitement of seeing everything supersized.
Does Costco actually save money?
While every family’s spending habits are different, many members report seeing savings over time. “The price per kilogram of many products we buy is much lower than at other stores, so we’ve noticed some savings over time,” says Alina.
That’s where Costco often shines. Looking at the sticker price alone doesn’t always tell the full story. A larger pack might seem expensive upfront, but when the cost is broken down per kilogram or per item, it can be significantly cheaper than buying smaller quantities elsewhere.
For families already purchasing these products regularly, the savings can add up throughout the year.
The best and worst Costco purchases
One of the fun parts of talking to Costco members is hearing about their favourite finds. Some people rave about the bakery. Others swear by the fresh food section or seasonal products. For Alina, two items stand out.
“My favourite purchases are the almond flour and toilet paper. I haven’t really had a worst purchase so far,” she says.
That might sound simple, but it’s often the everyday purchases that make the biggest difference. Whether it’s food that tastes better or household essentials that last longer, quality matters. And if buying 20 instead of five works out better value in the long run, many families see that as a win.
And if there’s one thing families never seem to stop buying, it’s toilet paper.
Costco membership costs in Australia
One of the biggest questions for anyone considering joining is whether the Costco membership costs are actually worth it.
In Australia, at the time of writing, the standard Gold Star Membership costs $65 per year and is the most popular option for individuals and families. It gives members access to all Costco warehouse locations worldwide, as well as online shopping. It also includes a free household card for another adult living at the same residential address.
For shoppers who visit regularly, there’s also the Executive Membership, which costs $130 per year. In addition to all the standard membership benefits, executive members receive an annual 2 per cent reward on eligible purchases, which can help offset the higher membership cost if they’re spending enough throughout the year.
Business owners have a separate option. A Business Membership costs $65 per year and allows members to purchase products for business use or resale. Businesses can add extra cardholders, such as employees, for an additional fee if multiple people need access to shop.
Would Costco be worth it for your family?
The answer depends on how your household shops. Families with several children, plenty of storage space and a habit of buying the same essentials each week are often those who get the most value from a Costco membership. Those who enjoy meal planning, buying in bulk and reducing the number of trips to the supermarket may also find it worthwhile.
On the other hand, smaller households may need to be a little more selective about what they buy. Bulk purchasing only saves money if the products are actually used before they expire.
For Alina though, “I would recommend Costco, especially for families looking for quality products and good value when buying in bulk.”
For lots of families, the appeal is quality in bulk. A Costco membership won’t magically cut every grocery bill in half, but it can be a useful tool for families looking to save on everyday items, stock up on household essentials and occasionally discover a few unexpected treasures along the way.
Read next: How you can save money by shopping at Aldi supermarkets
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