If you’re looking for serious savings, joining a club-based warehouse store is usually a good idea. But which one should you join? Is BJ’s better than Costco? What perks do you get with a BJ’s membership versus a Costco membership? For a deep dive into Costco vs. BJ’s, Bottom Line Personal spoke with Kevin Brasler, executive editor at the nonprofit consumer advocacy Consumer’s Checkbook.
Reality check: Before you decide which, if any, wholesale club to join, assess your needs and preferences. You’ll generally save up to 40% by unit price on groceries by shopping at a wholesale club…but it’s not really saving if you’re throwing half of it away because you’re buying in bulk when you shouldn’t be. It’s similar with the membership perks. Sure, discounted gas is great, for example, but is the club’s filling station conveniently located so that you’ll really use it? To inform your decision: Calculate your annual savings on everyday items, plus the value of the perks you’ll really use, and compare that figure to the cost of membership.
BJ’s basics
Like Costco, BJ’s sells its groceries at a steep discount to other stores. BJ’s prices usually are about 4% to 5% higher than Costco’s, but BJ’s offers a wider selection of name brands.
Memberships: A BJ’s basic annual membership costs $60 and gets you what’s called a Club card. Club Plus, which costs $120, is a higher tier of membership. Here’s what you get for each…
BJ’s Club ($60): The principal perk of basic Club membership (apart from being able to shop in the store) is free curbside pickup on orders of $50 or greater. BJ’s also touts its coupon combining, which allows you to mix store coupons with manufacturers’ coupons. (Many other stores also allow this, but taking advantage of it requires some work on your part.) At BJ’s, you just show both the store and manufacturers’ coupons to get the discounts. You also get one complimentary membership for someone else in your household and can have three other household members join for only $35 each.
BJ’s Club Plus ($120): With the higher tier, you earn 2% back on BJ’s purchases, with a $500 annual cap on rewards. You can add one supplemental household member for no charge, plus up to three more for the $35/year fee each. Another major benefit: You get an additional five cents per gallon off already-cheap gasoline at BJ’s stations. Plus-level members get two free deliveries per year and free curbside pickup on all orders. Note: The free curbside pickup perk should not, by itself, sway you to upgrade to the higher tier, since basic Club members also get free pickup on orders as long as they spend $50 or more…and how often would you use curbside pickup for orders less than $50?
Costco basics
Just like BJ’s, Costco has two membership tiers for individuals—the Gold Star ($65) and the Executive ($130). Benefits are similar in both tiers, but Executive members get 2% back on purchases, for up to $1,250 in savings per year. Executive membership also gets you discounts on some of the services that Costco offers by contracting with third-party vendors, such as insurance and home improvement.
Comparing the perks
Belonging to either Costco or BJ’s brings several other perks. Some are common to both stores, while others can only be found at one or the other.
Tires: Both BJ’s and Costco have tire centers with good discounts. At either place, they will rotate your tires for free if you’ve purchased them there.
Tech support: If you purchase appliances or electronics at either BJ’s or Costco, you get free technical support.
Extended warranties: Costco adds extra time onto manufacturers’ warranties on appliances and electronics. BJ’s sells protection plans instead.
Travel: Costco and BJ’s both offer discount vacation packages, car rentals, amusement park tickets and more through third-party vendors with which they have set up deals.
Pharmacy: BJ’s has no pharmacies in its stores. Costco does.
Vision: You can purchase frames and lenses from both stores, and most stores offer eye exams by independent doctors.
Hearing: Costco offers hearing exams and hearing aids, but most (though not all) BJ’s do not.
Car price shopping program: Only Costco has a car-buying service offering no-haggle prices from nearby dealers.
Gasoline: Both retailers have gas stations with discounted fuel for members. BJ’s gas prices tend to be lower than Costco’s…and BJ’s Club Plus members get five additional cents off per gallon.
Other considerations
In your BJ’s vs. Costco calculations, a few other areas could impact your decision, depending upon how much they matter to you…
Cost of online shopping: At BJ’s, there will be likely no difference in price whether you buy in-store or online. At Costco, you’ll pay slightly more when shopping online.
Scan-and-go: Only BJs allows you to scan items as you put them in your cart and use your phone to check out and pay.
Curbside pickup: Every BJ’s location has curbside pickup, but not all Costco sites do.
Food court: If a visit to the wholesale store is meaningless without grabbing a $1 hot dog or $10 pizza, that’s something you’ll only get at Costco. BJ’s has a full-service deli, and most locations offer rotisserie chickens and other premade hot items, but only Costco’s in-store dining can be called a food court.
