Yahoo Finance Is a Costco Membership Worth It for a Single Person?
The benefits of shopping at Costco are pretty great for a family or group of people living together. But what about for a single person? Can you still save money?
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While a single person may not need to purchase so much in bulk, Costco’s membership prices haven’t increased much over the years, making it still quite affordable. Currently, it’s $60 for an average annual membership, which gives you access to Costco locations all over the country and in a few other countries, including Mexico, Canada and Spain to name a few.
Better Unit Prices
You can often get better unit prices at Costco, said Julie Ramhold, consumer analyst with DealNews.com.
“Very often because of the bulk amounts at Costco, you’ll actually get a better unit price compared to shopping elsewhere. If you’re being very granular with your budgeting, this can really help you to pinpoint how to save even if the face value of the product is higher because you’re purchasing more upfront,” she explained.
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Fewer Trips to Multiple Stores
Additionally, buying in bulk means fewer trips and spending less overall.
“Because single people will theoretically go through items slower than full households, shopping in bulk may seem unnecessary but the truth is that depending on the item, it just means you have to buy something far fewer times than if you were to shop at grocery stores or big-box retailers,” Ramhold said.
Cutting down on the number of shopping trips you have to make can also lead to less spending overall because you aren’t dealing with impulse buys or the need to add more to your cart to make your trip worth it, Ramhold said. Not to mention, less driving means buying less gas.
Competitive With Local Grocers
For single people looking to save on home essentials, groceries and clothing, a Costco membership can provide substantial savings, according to Jeanel Alvarado, retail expert, founder and CEO of RetailBoss.
“Depending on where the person lives, it can be much more affordable than local grocers,” she said.
Inflation-Proof Pricing
Costco prices have remained stable despite inflation, as well, Alvarado said.
“For example, cashews can cost $30 for a regular size in rural areas, while at Costco in the same area, you’ll find it at $19.99 for a family size,” Alvarado added.
Annual Rewards With an Executive Membership
For people who upgrade to the $120 per year executive membership (and Costco will prorate this if you upgrade at a later point in the year), you can earn 2% cash back on qualifying purchases.
Small-Business Services and More
Beyond the competitive pricing, Costco’s business centers cater to small businesses, which can offer more options for single individuals who run their own businesses, according to Nick Drewe, founder and CEO of Wethrift.
Wide Range and Name Brand Products
Additionally, the products are often high quality and sourced from name brands, promising a superior shopping experience, Drewe said.
Lastly, there’s the vast range of products. How many places can you shop in one location and find everything from home electronics to fresh produce? Drewe said this can cut down shopping time and fuel costs related to visiting multiple stores.
“Despite the common perception, a single person can indeed harness the benefits of a wholesale shopping model like Costco,” Drewe said.
Kirkland Signature Brilliance
Don’t forget that while Costco does sell many name brands, its signature Kirkland brand is a game-changer for single shoppers, according to Martha Pestarino, a shopping expert and founder of The Goodbye Company.
“Offering quality products at unbeatable prices, opting for Kirkland Signature can help you save big on everything from groceries to household essentials.”
Discounted Gasoline
If you’re a driver, Costco’s discounted gasoline can be a lifesaver, Pestarino said.
“Every penny saved at the pump adds up, contributing to your overall financial wellness.”
If you upgrade to a Costco credit card (by Citibank) you can earn 4% cashback on qualifying gas purchases up to 7,000 miles and then 1% thereafter.
Access to Discounted Services
From travel packages to insurance and automotive services, Costco memberships often come with access to a range of discounted services, Pestarino pointed out.
“These perks may not be directly related to shopping, but they can provide substantial savings and convenience.”
Prescription Savings
Costco has even gotten into the healthcare game.
“Managing prescription costs can be a burden, but Costco’s pharmacy offers competitive pricing, even for those without insurance,” Pestarino shared.
This can lead to considerable savings for single individuals.
Resale Opportunities
For the entrepreneurial-minded, Costco’s bulk quantities present opportunities for resale, Pestarino said.
“By purchasing certain items in bulk and reselling them individually, you can offset the cost of your membership or even turn a profit.”
In short, for just $60 per year, a single person can get a lot of benefits from a Costco membership for almost every area of your life.
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This article originally appeared on GOBankingRates.com: Is a Costco Membership Worth It for a Single Person?
