Don't Fall for These Costco Savings Myths: Here's What Works

With millions of members chatting about Costco, it makes sense some myths and rumors would circulate. But when those myths start affecting your personal finances and costing you money, they need to be set straight. I'll tackle some of the worst offenders.

Myth: Everything is a bargain!

Costco fans are always raving about the great deals they get from Costco, so everything must be a great deal, right?

The real story

You will very often get a great deal on items you buy from Costco. The prices are definitely competitive on the majority of items. This is especially true if you're comparing the Kirkland Signature house brand with name brand products. The deals on gift cards can also be great bargains.

That said, as someone who regularly researches prices for various articles, Costco does not always have the best price on some items, particularly for brand-name electronics and small appliances (tablets, speakers, kitchen gear, etc. While it's rarely significantly more expensive, you may see the same price as you'd get from another retailer without a membership.

What works

Always comparison shop before making a large purchase, even if you think you've found a Costco deal. (I automatically shop around for anything over $50, but set your own limit.)

You should also annually make sure you're getting back the cost of your Costco membership in savings. It can take a lot of $0.50 deals to add up to a $60 membership fee.

Myth: You can only buy in bulk

If you watch one of those pervasive "Costco Haul" videos, you'll see a lot of things that come in gallons -- things you might not normally buy by the gallon, like mustard or icing. Then, you get to the store and see aisle after aisle full of pallets. It's easy to see why this myth is so believable.

The real story

While it's true that a lot of what you buy at Costco is sold in bulk, it's definitely not everything. Even then, "bulk" doesn't always mean "giant tubs."

Many items in Costco actually come in smaller containers, you'll just get a lot of them. For example, you can buy snack-sized bags of chips from Costco -- you'll just need to buy a box of 25.

At the same time, there are also plenty of items at Costco that come in whatever size and quantity you'd find it anywhere else. Looking for a new vacuum? Costco is happy to sell you a perfectly regular-sized vacuum, and you only need to buy one at a time.

What works

Buy bulk for what makes sense. Stuff that doesn't expire, such as toilet paper or maple syrup, can be great to stock up on. (If we took away nothing else from 2020, it's that you should always have some toilet paper tucked away.) Buying it in bulk is what makes the per-unit cost so great.

For everything else, be selective. Only buy bulk what you'll actually use up.

Not sure if you'll like something enough to buy 12 of it? Take advantage of samples to try items you're unfamiliar with. Alternatively, pick up a smaller quantity at the grocery store to try first. (If you really need to, you can also return something you really hated, but try not to make a habit of it.)

Myth: The return policy has no limits

If some of the Costco mythos is to be believed, you can return anything, at any time, for a full refund -- no questions asked.

The real story

This myth is actually almost true, but not quite. Costco's return policy is very, very generous. And yes, most items sold at Costco can be returned more or less indefinitely as a part of their satisfaction guarantee. You don't even need a receipt in most cases.

However, not everything qualifies.

There are exceptions to the return policy that includes major electronics, appliances, jewelry, and tires. Most of these can only be returned within a certain window. And some things can't be returned at all, including alcohol, tobacco, event tickets, gold bullion, special orders, and Shop Cards.

What works

Be familiar with Costco's return policy when making any major purchases. Otherwise, simply be reasonable about how often you take advantage of the policy.

There's no hard limit on how often you can make returns. However, Costco has been known to crack down on people it sees as abusing the policy. Excessive returns could get your membership revoked.

Bonus myth: It's always packed

If social media is to be believed, every Costco is swarming with people and carts around the clock.

The real story

If you're going during the most popular times -- weekends in the late morning and early afternoon -- you will definitely be in the swarm. (However, you'll also have the best variety and density of samples. Folks with sharp elbows may enjoy this time.)

That said, as with any store, there are definitely less-popular times you can shop to avoid the crowds. If you're not too bothered about getting a lunch's worth of samples, this is certainly an option.

What works

The best time to avoid crowds at Costco is generally in the evening during the middle of the week. The later, the better; the fewest crowds will be right before closing. Always be sure to leave yourself enough time to actually shop, though -- you don't want to be only halfway through when you get that 10-minute warning.

One neat way to gauge how busy a Costco location is going to be is to look it up on Google Maps. The listings generally include a "Popular times" chart that you can scroll through to see when the store is busiest (and when it's not).

While these myths may be loosely based on the truth, they're greatly exaggerated. Use these tips to avoid the traps and maximize your Costco savings.