Here are some personal accounts as to why Costco is the best.
Coffee Machine Discount. This one blew me away. I bought a very expensive coffee maker for the office from
Costco.com. It was $900. A month after i bought it, they sent me an email telling me the price had been reduced by $100 and they have credited my credit card. Are you kidding me... they just gave me $100 back without me asking. Who does that? Why don't they publicize that? What a great feature.
They have the broadest return policy in the market. They will take almost anything back, but there are now limitations on electronics (must be returned within 90 days) because some people have REALLY abused Costco's generous return policy.. you know who you are! But even with people abusing their return policy (like bringing back half empty bottles of Gin and brooms that are worn down to a nub and used toothbrushes... yes i've seen all of those things on the return rack) i think it sets the right corporate culture (the customer is always right) and that culture actually generates more sales. For example, when i shop there, i will throw things in the cart because i know i'm getting a good value, but also because i know if i don't like it I can bring it back. So i shop with a reckless abandon when i'm there and that generates far greater sales than the small amount that i have actually ever returned. Bravo on the return policy and i hope you keep it up.
Examples of shopping with reckless abandon:
Fourth of July 2002. I went to Costco to buy some beer for a BBQ. I walked out with 2 ocean kayaks. True story. I still have both ocean kayaks and to this day they are one of my best value purchases. Only $300 each and they came with their own paddle and seat. Disclaimer, i broke paddles in heavy surf so i had to go to REI and buy new ones at $150 each, but all in all great value because a comparable kayak at REI would be $700 just for the kayak. These impulse purchased kayaks have provided me and my friends hours our recreation and exercise that i would have never experience if it weren't for Costco.
Roomba. I was there buying something else, i saw it, and bought it. (this is the little vacuum robot that automatically goes around your house). I figured since it was at Costco it must be good. Problem was, my house soooooo small that I never even took it out of the box. When people would see the Roomba sitting in the box at my house, they knew it was a Costco purchase.
Beach Gear. I currently have 4 foam surfboards, 2 boogie boards, 2 skim boards, 3 umbrellas and 20 towels at my house just waiting for Summer to get here. Do i need all that... hell no... but at those prices, i felt like Costco was paying me to buy that stuff. And i hope my friends enjoy it when Summer hits.
The Food (dining there): After reading some of the comments below i realized i missed a HUGE positive of the Costco experience... the food.
Samples: When i was in law school, on a very tight budget, i used to head to the local Costco, take a couple of laps, and call it lunch. I'd just load up on some of the samples and camp out in front of the TVs. Lunch and entertainment for free... you can't beat that.
The Cafe: I'm not sure if you can really call it a cafe, but i will. You can get whole pizzas for $10, delicious vanilla ice cream bars hand rolled in chocolate and almonds for cheaper than a Haagen Dazs bar from the gas station, but best of all the hot dog and drink combo. They sell a 1/4 pound all beef hot dog (with a tasty egg bread bun) and a fountain soft drink for $1.50. That is the best lunch deal in town, hands down. And even though they don't advertise it, you can just get the hotdog for $1.00 if you aren't thirsty.
Costco American Express Card:(I am writing this paragraph because i was inspired by the comment below by @
robertrogoff) I was turned on to this credit card by @
gcm310 so he deserves some credit for this. But as the comment below states, this is the best card out there. They have 2 different options, but the rewards on this far out pace anything that is offered by any other credit card I have seen. You get cash back for rewards in the following amounts for purchases made anywhere... not just at Costco. Gas 3% cashback; Restaurants 3% cashback; Travel 2% cashback; Everything else (including Costco) 1% cash back. (the business version of this card is even a little better) To put this in perspective... if you compare this to traditional reward cards where you get 1 frequent flyer mile for ever dollar you spend that calulates to about 0.5% cashback due to how the value of frequent flyer miles have decreased recently. I should make a data point on this credit card.
Additonally, this card serves as your Costco membership card as well, so you can eliminate one card in your wallet!!
Negatives:
Now i have noticed that not everything is perfect at Costco. I don't understand why they aren't willing return things without the receipt. They know exactly when i bought the item and how much I paid for it because it is in my membership transaction records, but they seem to just want to make the process a touch more difficult than it needs to be. I can understand the desire for them to put up a slight barrier to returning something, so overall I'm very satisfied with this retail experience.
1) Lunch - If I'm ever in the area of a COstco around lunch time, I pop in for an inexpensive meal. Giant hot dog and fountain drinks for $1.50. If I'm really hungry, a large slice of pizza is $1.99.
2) Batteries - the Kirkland brand batteries are very good. You can also get Eneloop rechargeables. I even got a great set of Sony batteries with a small smart charger. Awesome for the digital camera.
3) Energy bars - why pay $$$ at a sporting goods store. Clif bars are way cheaper at Costco. They also have several other brands of bars to chose from. Various amounts of protein and other ingredients to keep you going during a long bike ride or fitness run.
3) TVs & computers - the 90-day no-questions-asked return policy is a deal-maker. Far less hassle than Best Buy if you are unhappy with the product. No restocking fee, either. They carry many different models in the store compared to what you can order on the web.
4) Random-osity - Wandering through the aisles, you never know what you might find. There are always surprises. Beware, though, you will almost always leave with more than you came for.