Should You Shop at Costco Business Center for Your Small Business?

Costco members may not know that the warehouse retailer has a separate branch of Costco stores dedicated to small business owners. Dubbed "Costco Business Centers," these warehouses look and feel like a regular Costco warehouse but sell business merchandise you wouldn't find there.

If you have one of these Costco stores near you, you might be wondering if it's worth buying business merchandise there. Let's take a closer look at who these stores are designed for and what you can expect when you shop there.

Who should shop at Costco Business Centers?

According to Costco, it’s Business Centers might be ideal for the following small businesses:

• Convenience stores
• Hotel and motels
• Professional offices (such legal, medical, or accounting)
• Restaurants and catering
• Service stations
• Vending machine operators

But this list isn't exhaustive. For instance, if you own a fitness or yoga studio, you could give your credit card a break by buying sanitary and janitorial products in bulk. Even if you run a charity or nonprofit, you could benefit from shopping at a Business Center, especially during fundraisers or events when you need to feed numerous people on a strict budget.

You don't even need a small business to shop there. Anyone with a Costco membership -- Gold Star or Executive -- can buy goods at Business Centers. While you won't find certain Costco products -- particularly clothes, bakery items, toys, jewelry, and small domestic appliances -- you might find better deals on your typical grocery purchases.

What can you find at a Costco Business Center?

When you walk into a Business Center, it'll feel like your typical Costco warehouse, only slightly smaller and less crowded. You won't find a bakery or middle section with what my spouse calls "mystery items" -- seasonal products, clothes, sporting goods, and the occasional gazebo -- but instead industrial equipment like reach-in freezers, countertop fryers, and hot food serving tables.

On its Business Center page, Costco lists items from the following categories:

• Beverages
• Candy and snacks
• Commercial appliances
• Disposables
• Groceries
• Janitorial supplies
• Office supplies
• Restaurant equipment and supplies

Most of the beverages, candies, and groceries will be sold in massive quantities that would be too much for the average consumer, such as 50 pounds of pinto beans or three pounds of crushed oregano, but perfect for restaurants or restocking vending machines and convenience stores.

You can look through the Business Center's website or supply list to get a better idea of what these stores sell. But to really get the creative juices flowing, I recommend visiting one in person first, as you might not realize the full extent of what they sell until you see one for yourself.

Do the Business Centers deliver?

Most Business Centers will deliver to ZIP codes within the metropolitan area that it serves. Currently, these areas are limited to the following cities:

• Anchorage
• Atlanta
• Chicago
• Dallas
• Denver
• Houston
• Las Vegas
• Los Angeles
• Minneapolis-St. Paul
• Orlando
• Phoenix
• Reno
• Sacramento
• Salt Lake City
• San Diego
• San Francisco
• San Jose
• Seattle
• Tacoma

Keep in mind that Costco charges slightly more when you buy things online versus in store. For Business Centers specifically, you'll also pay a $25 surcharge for orders under $250.

Should you shop at a Costco Business Center?

It doesn't hurt to compare Costco's prices with whoever is supplying your small business right now. Even if you have a good deal on recurring expenses with your current vendor, it might be worth a $60 membership if you can buy restaurant or industrial equipment for a low price.