Don Grady is a CPA and Professor of Accounting at National Louis University, Chicago.
For the longest time now, our neighbors have encouraged us to become members of Costco. I had resisted becoming a member because I didn’t want to pay the annual membership fees to shop at a place where you buy everything in bulk. Costco was for very large families that need bulk quantities of food and toiletries. With just Sue and I at home, how would we ever justify buying 36 rolls of toilet paper? Or three dozen eggs? Or why would we buy 25 to 30 chicken legs at one time? Besides, at those low prices, the quality must be pretty low.
Well, we were recently invited to our neighbors’ home for dinner and got to sample some of the gourmet desserts they had purchased at Costco. They were excellent. We were once again encouraged to give Costco a try. They raved about the quality of the Kirkland brand of products – Costco’s private label. They acknowledged that they purchased products in bulk but broke down the products into smaller quantities to servings for two and stored them in the freezer. We were also encouraged to visit the in-store snack bar and try their hot dog special.
Sue and I decided to give Costco a try. We were greeted at the entrance and directed to the membership desk, where we were afforded guest passes to tour the store. We were impressed by the number of “sample” stations located throughout the store. The Costco employees who served the samples were very welcoming and could answer any questions about the products.
Yes, the products were sold in bulk, but on a per-unit basis, the prices were very competitive. Not only were they selling their own Kirkland brand, but they were selling other brand products that we recognized as excellent quality. To our surprise, they sold our favorite wine at the lowest price per bottle we had ever seen – 10 percent lower.
We finished the tour and became members. I think we recovered the membership fee in savings at that first visit. Before leaving, we had to visit the snack bar and try the hot dog special. You get a large hot dog with all the condiments you want (including sauerkraut) and a beverage with free refills. Sue and I each got a special. The hot dogs were very tasty – perhaps the best dogs in town.
When we paid for the specials, the cashier said the cost was $3.23. I reminded him that we had purchased two specials. I was shocked when he said “Sir, that is the price for two.” Upon leaving the store, we were able to top off our gas tank at the Costco gas station. The price per gallon was ten cents lower than the surrounding stations.
Needless to say, we had a great Costco experience. My earlier hesitations of shopping at a “members only” bulk re¬tailer dissolved. I became a very satisfied, loyal customer.
• Send in your questions and ideas to: Sun Day, Frugal Fo¬rum Column, P.O. Box 7505, Algonquin, IL 60102, or, by email to: thefrugalforum@gmail.com.
