3 Reasons Not to Shop at Costco -- Despite the Low Prices

Costco has excellent prices, but it won't always offer the best value for your dollar. Learn when you should avoid shopping at Costco.


Warehouse club store shopper browsing aisle with shopping cart

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Confession: I'm a loyal Costco member and buy most of my products there. It has its ups and downs (great prices; crowded on the weekends), but I've learned how to maximize my rewards and have been generally satisfied.

That said, I'm aware that Costco isn't for everyone. While it can be difficult for current Costco members to fathom why -- come on: look at those gas prices -- there are several reasons that could dissuade someone from enrolling in (or renewing) a membership.

Along with some of the most obvious (you don't live near a warehouse, for instance), here are three reasons you might not want to shop at Costco.

1. Buying in bulk could lead to wasted food

Costco has hard-to-beat prices when you buy in bulk. However, if you buy perishables the bulk purchases could end up being hard to eat.

Perishable items like vegetables, cheeses, meats, and produce could easily go bad before you've had time to consume them. Some of these you could freeze, true. But if you don't have the freezer space -- or defrosted cheese isn't appetizing -- the trash can might end up being their eternal resting place.

2. You can find lower prices at other stores (including other wholesale clubs)

Costco has affordable prices. But it doesn't always offer the best value for your money, nor does it have the best prices for everything.

For example, Trader Joe's sometimes has lower prices than Costco. For example, you can buy a liter of olive oil at TJ's for $10.99. Meanwhile, Costco sells three liters for $36.99, or about $12.33 per liter. Likewise, you might also find lower prices at discount grocery stores like Lidl and Aldi.

More often than not, Costco beats the competition, especially for household products. Take toilet paper. At Costco, you can buy 30 rolls for $23.49, while at Trader Joe's, six rolls cost $3.99. Costco's toilet paper has 380 sheets, while Trader Joe's has slightly fewer at 350 sheets. In square footage, Costco is cheaper: $1.60 per 100 square feet, compared to $1.80 at Trader Joe's.

On the other hand, you might find a better price at another wholesale club, like Sam's Club or BJ's. For example, Sam's Club sells 45 rolls of Scott toilet paper at 1,000 sheets per roll for $30.48. That comes out to $0.60 per 100 square feet. Its olive oil is also cheaper than Costco (and Trader Joe's) -- $29.98 for three liters.

Sam's Club doesn't always have a lower price, but it's worth comparing prices just in case you can charge less to your credit card by shopping there.

3. You don't cook frequently

Costco does have some frozen dinners and ready-to-eat meals. And the prices are generally low (such as the infamous $4.99 rotisserie chicken). But it doesn't have much variety, you still have to buy frozen dinners in bulk, and it might not serve you well if you have certain dietary restrictions, like a vegetarian or vegan diet.

In this case, you'd probably save more money by shopping at another grocery store, like Trader Joe's or Aldi. These stores typically have frozen meals with smaller portions at decent prices.

Again, not everyone is the ideal Costco shopper. If you're not sure, it might not be worth dropping $65 for a basic Costco membership. You might be better off shopping at your local grocery store, where you can buy products individually and not worry about wasting food or money.

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