Is Costco’s $65 annual membership fee a bargain or a budget-buster? For many, it’s the difference between saving big and feeling ripped off. While Costco is famous for its bulk deals, that yearly fee can make frugal shoppers think twice. But here’s where it gets controversial: some items at Costco are so affordable, they practically pay for the membership themselves—even if you’re not buying in bulk. And this is the part most people miss: it’s not just about gas or giant packs of snacks. Let’s dive into the specifics.
A curious Reddit user recently asked fellow Costco shoppers: ‘What items, other than gas, make the membership worth it if you’re not a bulk buyer?’ The responses, combined with a deep dive by Business Insider, reveal some eye-opening insights. To figure this out, they compared Costco’s prices on everyday, shelf-stable items to those at retailers like Walmart, Target, and Amazon. They even used ChatGPT to estimate how much a two-person household might use in a year. The result? A ‘payback score’ that shows how much of the membership fee is offset by savings on a single item.
Here’s the kicker: A payback score of 100 means the savings equal the fee, while 200 means you’ve saved twice the fee. Ready for some surprises? Pet owners, take note: a 38-pound bag of Blue Buffalo dog food costs $65 at Costco—compared to $111 elsewhere. That’s a payback score of 713, meaning the savings cover the membership fee and six times the cost of the item. Talk about a tail-wagging deal!
Parents, this one’s for you: diapers and baby wipes have a payback score of 373. A jumbo pack of Huggies diapers is $50 at Costco versus $70 elsewhere. That’s the membership fee covered in less than four purchases. Baby formula? A large container of Similac is $55 at Costco, compared to $68 at other stores, with a payback score of 240. Even coffee lovers win big: Costco’s Starbucks Pike Place roast is $8.40 per pound, versus $12 elsewhere. If you drink 30 pounds of coffee a year, your payback score hits 166, canceling out the membership after just 18 pounds.
Cheese enthusiasts, rejoice! Tillamook cheddar is $4 per pound at Costco, nearly $3 less than other places. With a payback score of 102, it’s practically a no-brainer. Even toilet paper—yes, toilet paper—makes the cut. Costco’s 30-pack of Charmin is $1.10 per roll, 37 cents cheaper than elsewhere. Buy four packs a year, and you’re looking at a payback score of 67.
But here’s the controversial part: Business Insider notes this analysis assumes you’re only buying these items, which is unlikely. Once you’re in Costco, the temptation to fill your cart is real. In fact, studies show the average shopper spends about $1.75 per minute in the store, totaling $64.75 for a typical 37-minute visit. So, while these specific items make the membership fee seem like a steal, the real question is: Can you resist buying more?
Here’s where we want to hear from you: Do you think Costco’s membership is worth it, or is it a trap for overspending? Let us know in the comments—we’re all ears!
