How To Save Money Buying Groceries From Costco
Costco is known for its bulk quantities and relatively inexpensive prices, helping shoppers keep their grocery costs down. Costco keeps its prices low by relying on customers' word-of-mouth for marketing, purchasing items in large quantities from vendors, and offering a relatively limited selection of products. However, just because Costco's prices are generally lower than other retailers, it doesn't mean that everything they sell is the best deal. It also doesn't mean that there aren't ways to help you save even more on each shopping trip.
I've been shopping at Costco for several years now and have learned a lot in the process. My needs have changed over the years, as I was living on my own when I first started shopping and now shop for my family of four. To help out my fellow Costco members, I'll share some of the best tips I've learned along the way, along with others that I've researched.
Opt for Kirkland Signature products when possible
While many store brand products tend to be sub-par compared to national brands, Costco's Kirkland Signature brand is a regular exception to that rule. Many Kirkland products receive praise from Costco customers. As it turns out, some of these items are made by famous brands and sold under the Kirkland name. Starbucks, Jelly Belly, Keurig, Bumble Bee, and Duracell are a few of the national and global companies that have been confirmed to be behind some other Kirkland-labeled products.
Beyond rivaling more famous brands, Kirkland products are often significantly cheaper than alternatives, helping you save on your grocery bill. If you can't start your day without a cup of coffee from your Keurig, Kirkland K-Cup pods could save you 15 cents per cup because a pack of 120 sells for $39.99 on Costco's website compared to $38.99 for 80 Caribou Coffee K-Cup pods). For those with hungry kids who are always looking for a snack (speaking from personal experience here), the Kirkland organic apple sauce pouches work out to be only 54 cents each, compared to the GoGo SqueeZ organic pouches that cost 64 cents each. These savings can add up and will likely be even greater if you compare the Kirkland cost to that of the national brands at your regular grocery store.
Split bulk quantities with a friend or family member
Buying items in bulk can significantly lower the price per item. As an example, a 24-pack of Charmin Mega XL Ultra Soft toilet paper retails for $39.99 at Target ($1.66 per roll), while a 30-pack of Charmin Ultra Soft costs $33.99 at Costco ($1.13 per roll). That's a savings of more than 50 cents per roll when you purchase from Costco. These prices may vary slightly based on location, but you'll likely find a similar price difference between Costco and non-warehouse retailers.
The problem, however, is that buying items in bulk sometimes requires a larger investment upfront, which isn't always within the monthly grocery budget. Sure, buying 5 pounds of Kirkland Mexican Style Blend Cheese for $17 at Costco is 16 cents cheaper per ounce compared to an 8-ounce bag of Kraft Mexican Style Four Cheese Blend Shredded Cheese for $2.98 from Walmart. However, you would have to pay $17 for cheese up front. Plus, if you don't go through a specific product quickly enough, it could sit on the shelf collecting dust — or even expire before you get to use it.
Fortunately, there is a way to avoid these potential pitfalls while still taking advantage of the bulk pricing available when shopping at Costco. Coordinate with a friend or neighbor who could also benefit from the lower cost and split the item with them. This way, you can each get the benefits without forking out a big sum or having too much of any one item on hand.
Don't walk past the rotisserie chicken
When looking for the greatest deals from Costco to keep your overall grocery costs down, you mustn't walk past the rotisserie chicken. This fan-favorite costs only $4.99 — and has stayed at that affordable price for over 15 years. Rotisserie chickens from standard grocery stores not only tend to be smaller, but they are also often more expensive.
A Costco rotisserie chicken weighs about 3 pounds, which works out to about $1.66 per pound. Conversely, a rotisserie chicken from Whole Foods doesn't compare to Costco's offer. The chickens are not only smaller, weighing between 1 and 2 pounds, but they also can cost around $9 for one chicken (pricing may vary by location). If you're looking to feed more than one or two people, you'd likely need to purchase two chickens from Whole Foods, while the one from Costco would likely be sufficient.
Schedule shopping trips after major holidays
Carefully scheduling your shopping trips to Costco can also help you maximize your savings on key items. When possible, plan to head to Costco right after a major holiday, such as Christmas, Easter, Halloween, or Valentine's Day. The store will be aiming to clear out any seasonal merchandise — including specialty food items — that haven't sold.
In the past, Costco members have found a gift box with Ghirardelli chocolate items for only $3 a few days after Christmas and a big box of Zaini Cherry Liquor Chocolates for just $5.97. Taking advantage of these seasonal clear-outs can help you get everything from a specialty treat that you otherwise wouldn't spend money on for yourself to a small kitchen appliance or cookware set that you've been eyeing but haven't bitten the bullet just yet.
Always check the coupon book — and stock up when possible
When you're looking to save money, taking the time to look through coupons can make a big difference. Before you head out to Costco, be sure to take a look at the member savings coupon book. If you don't get a copy in the mail, you can also flip through the deals online.
One of the best things about shopping at Costco is that they don't require you to bring the physical coupon with you (or even to "clip" them digitally, as some other grocery stores offer). Instead, the items are simply marked on sale, and the discount will come off automatically when your items are scanned at the register. Still, you'd be remiss to shop without previewing the coupons, as you could miss out on buying something you could use at a discounted price.
Ask for a price adjustment
While Costco's coupon books and sales can be exciting, it can also be frustrating to find out that a product you purchased for full price a few days or weeks ago is now on sale for a lower price. If you've ever felt frustrated over missing out on a sale, you can banish all fears of ever experiencing them again. Costco's price adjustment policy has you covered if you ever miss a sale.
Costco members — other than resale members — can request a price adjustment within 30 days of buying the item. You'll receive a refund of the difference between what you paid and the current sale. If you made the purchase online, you can request a price adjustment through the website. Price adjustments for purchases through a warehouse will be taken care of at the returns counter — you don't even need your receipt since those are saved digitally and connected to your membership account.
Don't shop without a list
Shopping at any grocery store without a list — especially when hungry — can be dangerous. It is too easy to toss extra items into your cart that you "need," only to wind up in shock when you see the final bill at the register. This shock factor can be even greater at Costco, as even a few extra items can quickly add up. Because of the bulk quantities sold, many of the standard grocery items cost at least $20 at Costco, so if you toss in five extra things, your bill could increase by $100 or more.
Avoid this Costco shopping mistake by coming prepared with a list of the items you need. Sticking to your shopping list can help you avoid those impulse buys and ensure you stay within your budget. Another reason to bring a list is that it will help make sure you don't leave without something you want. Costco is not a small store by any means. If you don't have a list, you might forget about an item and aren't necessarily going to walk by it to spur your memory. Similarly, a list can also help ensure your shopping trip is efficient and that you aren't crossing back and forth across the store as you remember the items you need.
Consider freezing certain items so they'll last longer
Costco quantities are not exactly small. If you're single or don't have a huge family, you may wonder whether you'll even be able to use up a perishable item before it expires and feel like you wasted your money. One option to help you still enjoy the lower per-item price that comes with buying in bulk is to freeze portions for later use.
Many items can be frozen to preserve their freshness. Though, it is important to point out that the taste may change slightly once thawed and that some foods hold up better in the freezer than others. That being said, a few of the Costco items that you could consider freezing include one of the loaves of bread from a two-pack, portions of sauces (consider freezing them in an ice cube tray first before moving the cubes to a freezer bag), slices of cakes and cheesecakes, bagels or muffins, and even fresh fruit.
Shop in-store instead of online when possible
I get it: Online shopping can be quicker and less stressful than wandering through a busy Costco Warehouse. Costco even offers free two-day delivery for most online orders of $75 or more. However, shopping online isn't the best choice if you're looking to maximize your savings.
The online price is often more expensive than what you'll pay if you pick up the item in person at a local warehouse. Even if a specific grocery item you want costs only a few dollars more, those dollars can add up quickly when you're placing a large order or repeat purchases. Shopping in-store will also allow you to discover some items that aren't available online, including many meat, dairy, and produce items that can't be shipped.
Download the Costco app
If you consider yourself a Costco expert but haven't downloaded the app yet, you might want to remedy that. The app offers a lot of useful features, many of which can help you maximize your savings during each shopping trip. For example, you can browse through the member-only savings offers from the convenience of your smartphone when making your shopping list. You could even pull these up in the warehouse if you realize that you forgot to check them out before leaving.
The app also has a "While Supplies Last" section. This will allow you to view current specials for products that might not be available at the warehouse for much longer. Those who like to track every penny to make sure they're spending their money wisely can use the app to view receipts from past purchases made online and in-store.
Look for death star deals
Have you ever seen the "death star" at Costco? No, not the one from a galaxy far, far away — the one on the top right corner of a price tag in the warehouse. The "death star," which is really an asterisk, indicates that an item isn't going to be restocked, though it can potentially make a comeback at a later time. The products that are currently in the warehouse are the last that will be available. So, if you want that particular item, now is your last chance to stock up. Because they are on their way out, "death star" items may be marked down, helping you save money before you have to say goodbye to a favorite product.
There are other tricks to Costco's pricing system, allowing you to evaluate whether something is a great deal. If you see a price that ends in a .97, such as $18.97, it indicates that the product has been marked down. Regular prices at Costco end in .99, like $25.99. If you happen upon anything that ends in .00 — like $15.00 — snag it up quickly if it is a product you like. The price of a product that ends in .00 won't be reduced further — these are manager markdowns, which also might not be available at every location.
Don't pass up on manufacturer rebates
Keep your eyes peeled for signs or flyers advertising a manufacturer's rebate. While these aren't always available, when they do pop up, they can help you save money by stocking up on some of the products you buy anyway. For example, Procter & Gamble — the parent company of Charmin, Tide, Dawn, Bounty, and other home and personal care brands — seems to run a rebate for Costco customers about once per year. One of these recent rebates offered a $25 Costco Shop Card for purchasing $100 in qualifying products or a $50 Costco Shop Card for purchasing $200 in qualifying products. If you regularly purchase those items anyway, it's like free money to spend at Costco on a future trip.
Costco also makes it easy to ensure you receive your rebate. You can submit the necessary purchase info online or through the mail. They even offer a link to let members track the status of the rebate so they know when their Costco Shop Card will be ready to use.
Hit the food court to pick up a meal to go
A shopping trip to Costco often turns into an adventure, a workout, or both. After navigating through the store, chances are you'll be hungry. So, instead of going home and cooking something — or spending money to eat out — consider picking up something from the food court. Beyond being conveniently located past the checkout lines, Costco's food court offers an incredible opportunity to save money.
You may have heard about the $1.50 hot dog and drink combo, but there are actually several items on the Costco food court menu, most of which are also very economically priced. For example, you could pick up a slice of pizza for $1.99 — or even a whole pie for $9.95 — that's probably a lot less than you'd spend at a local pizza joint. You can also get a turkey Swiss sandwich for $6.99 or a chicken bake for only $3.99. And this is Costco, after all — don't expect wimpy portions. Any of these items could easily make a satisfying meal. There are also several drink and dessert options, including an ice cream cup for only $1.99 or a cold brew mocha freeze for $2.99.
Upgrade to an executive membership
Whether you're buying a Costco membership for the first time or have been a member for several years, you might want to consider upgrading to an executive membership. While this membership tier is more expensive ($130 per year compared to $65 per year for a standard gold star membership), it comes with perks that may help you save money in the long run.
One of the biggest perks is the annual 2% reward on eligible purchases. If you shop regularly, that 2% can add up quickly, and you could end up getting more than the $65 difference between the two membership tiers. So, you can decide whether you shop at Costco enough to make an executive membership worth it. If you spend an average of $270.83 per month at Costco, you'll break even and earn the $65 additional cost of the membership. Anything you spend above and beyond this would all be extra money in the bank — plus, you'll also be eligible to receive additional benefits on other Costco services.
Get the Costco Anywhere Visa credit card to earn cash back
Regular Costco shoppers may also want to consider applying for the Costco Anywhere Visa Card by Citi. With this card, you'll earn cash back on every purchase you make at Costco, helping to offset the price of your groceries every trip. Cardholders earn 2% cash back on most Costco purchases. Say you spend at least $300 per month at Costco: You'll earn a minimum of $72 back in rewards each year — this dollar figure will only increase if you spend more than $300 each month.
Cardholders also earn 5% cash back on gas from Costco, 4% cash back from other gas stations or EV charging machines, and 3% cash back from restaurants and travel. There are no annual fees or foreign transaction fees. The credit card will also have your membership information, allowing you to use it as your ID to shop at your local warehouse.
Don't assume everything is cheaper at Costco — or you'll use up the product before the expiration date
While many things are cheaper at Costco, there will always be exceptions to this rule. Before assuming a grocery product costs less per item/pound, do some quick math to make sure you're getting the best deal. Sometimes, you'll find that a sale at your local grocery store edges out even the bulk pricing from Costco.
The other thing to consider is whether you'll be able to use the entire item before it goes bad or if you'll end up wasting your money. While freezing certain items or splitting the cost with a friend or family member can often help prevent this, it isn't always possible. So, if you don't think you'll eat that entire carton of strawberries, premade salad, or rack of ribs, it won't actually be such a great deal. You won't end up saving money in the long run if you end up throwing out half of the item because it spoils before you can eat it — plus, you'll be wasting food.