If you know you’re going to need one or more of the following big ticket items in the next year or so it may make sense to budget and plan to make all the purchases in one year to make the most of a Costco membership fee, which starts at $60. If you’re planning any of the following seven purchases in the next year, you may as well consider your membership paid for.
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After you cover the membership fee with one or more large purchases, stock up on smaller items such as gift cards and movie passes that you will use this year and the next in order to maximize your savings in the year you purchase a membership.
Read more: Can a Costco membership save you money?
Big-ticket purchases that will pay for your Costco membership
1. Electronics. A friend saved $200 on a computer, compared with all other options. The same goes for televisions and other electronics. Obviously you will need to shop around. Costco also extends the manufacturer’s warranty to two years for electronics, TVs and major appliances.
2. Tires. Costco came in only a few dollars more than the lowest price I found at a shop in the suburbs, so Costco should always be in the mix when you’re shopping for tires. And your savings increases with Costco’s tire installation including rotation, balancing, nitrogen tire inflation and more. It also includes a warranty for mileage, road hazard and manufacturer’s defects.
3. Eyeglasses and contact lenses. The Costco Optical Department is highly rated by Consumer Reports. When I had new glasses made several years ago I saved $300 compared to other options I researched. They also made a mistake on the lenses (which had to be remade) and gave me a $50 cash card for my trouble. Another friend joined Costco exclusively to save money on contact lenses and that savings covers her annual fee every year.
How to save money on eye exams and eyewear
4. Carpet and flooring. One Living on the Cheap editor found that Costco’s price to carpet her home was cheaper than anywhere else in town, even before she got an additional Costco rebate based on her top-tier membership. Costco works with local carpet and flooring stores to provide the products and installation.
5. Furniture. I searched everywhere for a reasonably priced leather ottoman with storage. All other options were $1,000. Costco was $275, including tax and shipping. The first one arrived with the box damaged so I sent it back (they emailed a prepaid label). They sent me another one and gave me a $25 credit for my trouble (I tried for $50).
6. Parties. If you have an anniversary or graduation party coming up, you will find the bulk quantities sold at Costco can be a very good deal when you’re cooking for a crowd, particularly steaks (they sell prime beef that you can’t get at the grocery store) and seafood. Julia Child bought her meat from Costco.
7. Wine and beer. Costco is the largest purveyor of fine wines in the United States. Availability will vary but you can get some great deals. A friend who is a beer enthusiast tells me the beer prices and selection are excellent also. Again, if you have big party coming up, a big Costco booze purchase may make sense.
Other purchases to make after you’ve recouped the membership fee:
Gas. I don’t use much gas and driving over to the nearest Costco would erode any savings but per two people I know who fill up weekly Costco gas is 10 cents to 20 cents less per gallon and almost always the lowest price around. Non-members can fill up if they use a Costco gift card.
Gift cards. Every local Costco offers a different mix of discount gift cards for restaurants, usually at least 20% off.
Movie tickets. If they are available you can save 20% or more depending on how much movies cost in your area.
Rotisserie chickens and pizza. I’ve eaten both and they’re excellent. Both are less expensive than at grocery stores and as good or better.
Food Court. It’s $1.50 for a decent hot dog and a 20-ounce Pepsi product or $1.99 for a slice of pizza. You can’t beat that for a cheap meal. And you don’t have to be a member to eat at the food court if it is located outside the warehouse.
Surprises. Costco turns over its entire inventory 12 times per year. Every trip is a treasure hunt for deals. Keep a list of things you need or that will need to be replaced soon and take a spin through the aisles when you’re there. Of course, never buy anything you don’t need regardless of how inexpensive it is.
I’m sure there are more things that I am forgetting. If anyone has any ideas for what to buy at Costco, leave a comment. Thank you and enjoy your savings!
More ways to save money at warehouse stores:
You don’t have to be a member of costco to use the optical or RX departments
Cars! – Costco helps you buy a car at a good price.
We also use the Costco Travel services for rental cars and always save compared to all of the travel sites. Example: rented a top end, fully loaded suburban to travel to Texas from Colorado (wanted room for 6 people to stretch out) for a week and paid $475 total (with taxes and everything)! Everywhere else wanted over $1,000 for the same vehicle for the same time. When we fly we’ve saved over the travel sites by booking the car separately because Costco has always been a much better deal. Easy too–tab on the top of the main Costco web site.
Yes you can get an eye exam at the Costco optical department but you cannot have glasses made or purchase contacts. You can get an RX filled at Costco without a membership also.
Wow I did not know that. I’ll have to look into that. Thank you.
I never rent cars when I travel so I’ve never used it but readers please take note. Thank you.
I found a package of two very good king size pillows for $20 at my local Costco. (It was one of those “surprises.”) Since I’m picky about my pillows, I probably would have paid $40-$50 – if not more – for two. And that’s even shopping at the off-price retailers.
Now that I think of it, I wish I had bought a few extra. :)
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