Study: Costco Customers Are Irrational

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I like Costco I do save money!

Mary of MA 6:32AM October 28, 2011

Dear Harvard - You must be in walmart's pocket. Basic items alone will save you a bundle. Example Milk sold in gallon containers, we use 108 gallons per year at an average savings of 50 cents a gallon. Membership paid for. Costco meat is USDA Choice, whats walmart's. If you have school age children its a no brainer. People today are shopping for bargains. My detergent, ALL I paid 8.49 for 120 loads. Maybe you should include BJ's which is on your doorstep. Shopping at the Club stores pays.

F. Corbett of NC 5:35PM October 27, 2011

It sure sounds like they are. Who takes the time to put put a defense letter like the "It depends" letter. Give me a break. If it isn't Costco it is someone who was hired by them. Nice touch about being Russian though that really sold me.

Earl Eiben of FL 9:17AM April 09, 2011

ATTENTION, Dog and Cat Parents! COSTCO is still selling lethal Dog food 2 years after tens of thousands of Dogs and Cats were murdered by chinese melamine-laced lethal food!

"Gotlife of IL": The reason the costco Dog food almost killed your beloved Golden, is because they still stock LETHAL Pet food in all the stores. It is still made in china which distributed per foods that in reality killed TENS of THOUSANDS of Dogs and Cats in 2007. (big media coverup of these facts.) We will NEVER again buy any product made in china for our Golden child, or ourselves.

We are canceling our membership. Costco was once a good store. Those days are long gone. We do not want to help support a compnay who knowingly helps kill Dogs and cats

JJ of FL 7:12PM November 24, 2009

Costco has gone to hell. Their prices are higher than hell now, and not a dime cheaper than walmart, publix, etc. They flagged my account and harass me whenever I try to return something I did not want, or something defective. I have returned 7 items out of 267 I bolught this year.

Gotlife of Ill: The reason the costco Dog food almost killed your beloved Golden, is because they still stock LETHAL Pet food in all the stores. It is still made in china which distibuted per foods that in reality killed TENS of THOUSANDS of Dogs and Cats in 2007. (big media coverup of these facts.) We will NEVER again buy any product made in china for our Golden child, or ourselves.

We are canceling our membership. Costco was once a good store. Those days are long gone.

JJ of FL 7:06PM November 24, 2009

We buy detergent, toilet paper, paper towels etc. only at Costco or Sam's club. We don't shop there for food very often though. I like to buy organic frozen berries for kids - huge price difference, comparing to regular supermarkets, and other great food they have. Books, electronics, mattresses and many other things for houshold we buy there. And trust me, we are very frugal. Also Costco has a very good return policy. Not to mention their foodcourt hotdogs hahaha! So, I suggest, before buying membership, just calculate, if it will be beneficial for you and how much money you may save. Sure it will save money fore some families and or businesses and will not worth it for others. And hey! If you make unplanned purchase - that's not Costco's fault. That's about you, my friend, willing to live beyond your needs LOL. After all Costco is here to SELL.

PS I apologize for my English - I'm russian:)

Irina of SC 11:43AM August 02, 2009

I am a regular Costco shopper & love everything about them. Buying in bulk has it's advantages & disadvantages; however, so does the discount retailer, too! I purchase Costco produce for any and all produce because of the quality & how long it lasts. I can buy produce at a discount somewhere else, but it's just going to go bad before I have a chance to eat it. If Costco's goes bad, take it back, they'll refund your money, no questions asked!

When I got married, prior to them offering their new service, I special ordered all my flowers to take to a florist to have done. Their flowers are by far the prettiest, most cost effective, and made my special day spectacular. When I am having a day where I need flowers, I go in there & pick them up for my pick me up. Oftentimes, they last two or more weeks. At Valentines Day, they are the ONLY place I've encountered that doesn't raise their prices just because they can take advantage of John Q Public.

I do not agree with this article one bit! When I was hit by Hurricane Ike last year, the first place I turned to for repair materials was Costco. It turns out I saved over $1000 by purchasing my Bamboo Wood Floors from them vs. Lumber Liquidators! Not to mention the carpet replacement, blinds, windows, and gutters. All those savings saved me thousands of dollars with the great customer service to back it up.

Cathy of TX 2:38PM July 31, 2009

We shop at Costco all the time. We still save a lot of money though it is just her and I. Buying products like toilet paper, paper towels pays off in the end. The meat is so much better than Safeway, Albertsons etc. Using the seal a meal pays off in the end. Large quantities? We save money on clothes, medicine, etc. We still save by shopping around at other stores than that we think the card is worth the yearly fee at Costco.

Tim M of WA 1:21PM July 31, 2009

When talking with a Costco store manager I was told that 60% of their sales are 'unplanned' sales -- customers coming in and picking up extra items that they had not planned on buying.

And it seems to be true when I look at my cart when I check out!!

Buck of TX 12:24PM July 31, 2009

We don't have a Costco in my area. I wish we did.

We are a family of six, so we do, often use large quantities so we shop at Sam's. Since we started shopping there, I've gotten spoiled by the quality meats (I, like others who have commented, break the meat down in to smaller packages and freeze it) and not having to buy paper and cleaning products constantly. It's also nice not to have two hundred little packages of things to haul into the house and put away.

We rarely buy perishable items that we don't use quickly and can't freeze and some items just aren't a good deal -- soda for instance.

I'm not saying I'm rational. But wider isles, better quality products, shorter check-out lines, and the convenience of having to not buy things as frequently are important to me, even if every product is not always cheaper.

Heather of IN 12:00PM July 31, 2009

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Alpha Consumer

Alpha Consumer

Kimberly Palmer, senior editor for U.S. News & World Report, is the author of Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back. Send her your personal finance questions.


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