Sam’s Club or Costco? Which is better? Which one offers the biggest bang for the buck? I’m going to try to answer these questions for you.
Membership Fees – Both companies offer basic memberships that start at $45.00 for Sam’s Club and $55 for Costco. Both companies offer enhanced memberships that are in the $100 range.
Product Quality – According to Consumer Reports, they like the quality of the products from Costco better. I have to agree. I really like the quality of the products at Costco. High on my list are the groceries. I started to look at labels closer after a health issue and Costco meats and produce are the same quality as what you’d find at “natural” food stores like Whole Foods and Trader Joes. The Kirkland Brand items are 1st rate. Take their crew socks. Sam’s Club are thin and after a few months…. they look and feel worn out. Kirkland, on the other hand are thick and plush. They look and feel as good after four months as they did new. Oh… and there is the Kirkland booze. Great quality at outstanding prices.
Returns– For returns, again the nod goes to Costco. What really separates them is electronic returns. Costco offers 90 days while Sam’s Club offers a mere 30 days. For me, thirty days is not enough time if a product is going to fail or decide that you don’t like it.
Credit Cards– Here again it is a toss up between them. Costco launched a new Visa card in 2016 that offers 4% cash back on eligible gas purchases (on up to $7,000 per year, then 1% back), 3% back on restaurant and travel purchases, 2% back on Costco and Costco.com purchases, and 1% back everywhere else. There is no annual fee for the card, but shoppers must pay for the $55 annual Costco membership to use it. The Sam’s Club MasterCard, by comparison, offers 5% cash back on fuel purchases (on up to $6,000 per year, then 1% back), 3% back on restaurant and travel purchases, and 1% cash back on other purchases. Customers can earn a maximum of $5,000 in cash-back rewards annually.
Extras – If you are business person that either uses a lot of items or resells them, Sam’s Club is really business friendly. Sam’s has more business type items and offers “business only” hours. Costco on the other hand is really setup for the consumer. At Costco, members can get a mortgage, invest in securities, buy car and get insurance. You don’t need a membership to use the Costco pharmacy, eyecare and food court. Many location offer gas too. Sam’s Club offers online auctions where customers can bid on items like laptops and flat-screen televisions.
Buyer Beware – I noticed that with my Sam’s Club Membership, many in-store items can be purchased for less at Wal-Mart. The same goes for Costco. There are items that can be had for less, but their deals are really deals. I purchased a big screen TV on sale for $133.00 less than I could find anywhere else. Then I used my Costco card and I’ll be getting more back. That is a really good deal!
Customer Service – According to Consumer Reports, each of the companies got low scores for customer service, rating as “poor” to “fair” in that category. Costco squeezed ahead of Sam’s Club with slightly higher marks for service. To be honest, does any retailer offer great customer service anymore? Personally speaking, I have never had a problem with either but the people at Costco seem more willing to help you find items and seem to enjoy working there. That is a big plus.
Closing Thoughts – I really like Costco. It helps that it is only a mile from my home. Sam’s Club not so much. It is nothing more than a Wal-Mart that is hard to get to.