So, almost a year ago, I took advantage of a discounted deal on a Sam's Club membership for $19. It will renew automatically on July 8 for the full price of $50, unless I cancel it before then. I also have had a Costco membership for almost a decade, so this raises the question of whether I need to keep both, or if not, which to drop. In analyzing how I use each membership, I'm finding the equation is anything but straightforward.
The first question of cost for the membership itself would seem a 'no-brainer', in that the Sam's membership is $10 cheaper, but having had the Costco membership longer, I am slightly more invested in that ecosystem because I also have a Costco Visa card, which earns me more than enough cash back--even on my Sam's Club purchases--to cover the price of my Costco membership and then some. While I could get a similar Sam's Club card, the hassle of switching over, considering all of the automatic charges tied to the Costco card, makes this less than appealing. The advantage going in definitely belongs to Costco.
The second part of the equation is what I buy at each store. There are many items available at both stores, and at comparable prices. It's mostly a matter of convenience or which one has it on sale. Of course, there is also packaging to consider. Costco, for instance, offers most of its canned goods, in normal sized cans, shrink wrapped together in cases of six or twelve, depending on the product, while Sam's offers most of its canned goods in restaurant-sized no. 10 cans that are simply not practical for home use. Costco also seems to offer better quality in the form of more organic and gourmet selections than Sam's does, meaning that there is often more stuff I want to buy at Costco. In recent years, I have made Costco my go-to for tires and car batteries, although my most recent tire purchase was at Sam's, which was able to provide a slightly better turn key price. Having the tires from Sam's raises the concern over their warranty, which would instantly evaporate, should I decide to cancel that membership.
Part of my motivation for pulling the trigger on the Sam's Club membership was for a couple of specific items that are not offered at Costco, but is it enough to justify paying for that membership? The number of items in question is fairly small, and I often question whether I would be better off in the long run, using the price of the membership fee to buy those items elsewhere, albeit at a somewhat higher unit price? I have to keep in mind that sometimes, the unit cost of items at Sam's or Costco is not as competitive as it might seem on the surface.
Another sub-part of this question is how often I shop at each location. I tend to go to Costco about once a month, not including gasoline purchases, while I only go to Sam's every two months, on average, and seldom purchase gasoline there. Both stores use discounted gasoline as a loss leader, and fuel prices are comparable at both places. I will buy gas at either, if I need it, but the lines at both are enough of a hassle to keep me from going out of my way to buy fuel there, unless I'm in the neighborhood, which brings up the question of convenience.
In my city, the two stores are located almost directly across the road from one another, so they're equally (in)convenient for me. Both have congested parking, although Costco does have a bigger lot, so one can always easily park a little distance from the warehouse, saving time and fuel, as opposed to continually circling to find a spot. The latter is sometimes the only option at Sam's, which has a smaller lot.
Of a more esoteric nature is Costco's reputation for treating their employees well, which is evidenced by their low turnover rate. I see the same faces wearing red Costco vests year after year, and thus it is quite difficult to get hired there, as friends who have applied there have attested. But that makes me feel good about shopping there. On the other hand, Sam's Club is a subsidiary of Walmart. Make of that what you will.
So, in the final analysis, a couple of conclusions have bubbled to the surface: For the reasons above, I am not considering canceling my Costco membership, and of the two, Sam's Club is the one I can more easily do without, but will I cancel it? I'm leaning toward keeping it and reassessing in a year whether I'm getting $50 worth of value from it. The membership was certainly worth the $20 I paid for it this year, but $50 will definitely be a much harder sell.