Sam’s ClubSam’s Club Sam’s Club, a rival to Costco, has implemented strategies to retain customers. Reduced Membership Fee Until August, Sam’s Club has lowered its membership fee to $25, significantly undercutting Costco’s $60 annual fee. Free Shipping Restriction Sam’s Club has removed free shipping for orders under $50, aligning with increasing shipping costs. Costco Benefits Costco offers tiered membership options with benefits such as travel discounts and roadside assistance. Other Savings Tips Costco Savings: * Purchase travel gift cards for discounts. * Take advantage of discounts on paper towels and bath tissue. * Book rental cars through Costco for savings. General Ways to Save at Warehouse Clubs: * Utilize discounts on prescriptions, eye care, and more. * Consider the cumulative benefits of membership fees to offset expenses.
(NEW YORK) — Sam’s Club, Costco’s big-box retailer, recently stepped up its customer retention efforts.
Both department stores are popular because they sell high-quality items at lower prices, making it easy for consumers to buy in bulk and save money.
Now, Sam’s Club has dropped its membership fee to just $25 through the end of August in a bid to lure new members. The newly reduced rate is more than half the annual membership fee at the retailer’s biggest competitor, Costco.
“By lowering the price of their membership, especially for new members, this is one way to get people excited about Sam’s Club offerings,” retail analyst Hitha Herzog told ABC News. Good morning America.
But the wholesale giant also faced criticism after it removed a key benefit normally only available to Plus members.
Starting in mid-August, free shipping only applies to qualifying purchases of $50 or more, excluding tax.
“Over the last few years, shipping and logistics around shipping have become extremely expensive,” said Herzog, chief research officer at H Squared Research. “Sam’s Club is trying to cut costs by not offering free shipping on orders under a certain amount, but they are adding other perks for members.”
In contrast, Costco’s Gold Star and Business memberships cost $60 per year, while an Executive membership, which offers additional benefits such as travel discounts and roadside assistance, costs $120 per year.
Warehouse clubs also offer discounts on more than just bulk items: from pharmacy to travel programs. The other benefits can add up and help members better understand the annual cost.
“You get discounts on gas, on prescriptions, on eye care,” Herzog said. “So overall, you may feel like you’re paying more for that membership, but the benefits actually give you additional discounts that make it worth it.”
The Best Costco Savings Tips
Whether you’re new to Costco or have been sampling for years, here are some easy ways to save money at the grocery store.
Buy travel gift cards: Some airlines sell gift cards at a slightly discounted price, such as $50 off a $500 Southwest card.
Daily necessities offer great discounts: When it comes to savings at Costco, The Joy of Costco Authors David and Susan Schwartz know a thing or two about the best-priced products thanks to more than five years of global research on Costco. They previously told GMA that two items always top their cost-effective shopping list: “paper towels and bath tissue.”
Travel deals from rental cars to vacation packages: The Schwartzes also encouraged their fellow members to rent cars through Costco, which partners with major car rental companies and offers 20 percent off rates.
Copyright © 2024, ABC Audio. All rights reserved.
