5 Things That Are Overpriced at Costco

You may want to steer clear of these items.

Feeding my family is by no means an inexpensive endeavor. And that's why we shop at Costco once a week. By loading up on milk, cheese, and bulk produce at a lower price point, we're able to keep our credit card bills to a minimum without having to skimp on the things we want.

But one big myth you'll hear about Costco is that its prices are always the cheapest around. Not so. There are certain products that will generally cost you more money at Costco, so you're better off buying them at the grocery store instead.

1. Pasta

Pasta is a staple item in many people's pantries -- certainly in mine. But be careful when buying pasta from Costco in bulk, because you may end up spending more money than necessary.

Pasta is one of those items that supermarkets tend to discount. And sometimes, those discounts can be substantial. In my area, it's not uncommon to find a one-pound box of pasta at the grocery store for $0.89 or less when it's on special. But even at Costco's bulk price rate, it's hard to find pasta for less than $1 per one-pound box.

2. Cereal

Costco offers year-round deals on many cereal brands. But if you're willing to be patient, you're likely to find a better price at the supermarket once your favorite cereal goes on sale.

Not only do supermarkets tend to discount different cereal brands on rotation, but you might be able to stack a coupon on top of that for a much lower price per ounce. Furthermore, some supermarkets sell a store-brand version of common cereals that are discounted to begin with. Costco's Kirkland brand doesn't produce a lot of imitation cereal, so you're generally looking at buying a bulk box of a name brand at your local warehouse club.

3. Avocados

Avocados are expensive to begin with. But over the past year, Costco has raised its price on its bulk pack of six. In my area, you'll now pay about $10 for a half-dozen avocados, or $1.67 apiece, whereas if you wait for them to go on sale at the supermarket, you might pay just $1.25 apiece.

Furthermore, avocados happen to be a tricky thing to buy in bulk because that often means having them all ripen at the same time -- which, unless you're making guacamole for a crowd, is probably not what you want. You may be better off buying a couple of on-sale avocados at the supermarket at the start of the week, and then replenishing with another two at the end of the week.

4. Books

Costco can be a great source for gifts, including books. But don't expect to find the most competitive prices there -- or the best selection. Often, you can find books at a lower cost at Amazon or Target, and that includes boxed sets.

5. Bread

Costco's bakery has some delicious bread items that may be cheaper than what your local bakery charges. But packaged/sliced bread isn't such a great deal at Costco. Where I live, it's almost always more expensive than the store-brand version at my local supermarket. And since my kids don't care what sort of white bread their sandwiches are made on, there's no sense in me paying extra.

Do your research

While there are plenty of bargains to be had at Costco, don't just assume that all of its prices are the cheapest. Instead, spend some time comparing prices, especially if you're on any sort of a budget. You may find that while Costco is the right choice for the majority of your shopping, you can save money by purchasing a few key items elsewhere.