My personal Costco Effect

[audreyh1]

I was looking through our YTD expenses lately, and I noticed something interesting - our dining out budget had dropped quite a bit. We are eating out only about half as often compared to last year.

Now normally, when we don't eat out much, our grocery bill increases noticeably, but that hadn't happened either. In fact, it dropped slightly.

I realized that this was a "Costco Effect". Costco opened in Pharr TX in March of 2012. We had friends who were diehard Costco fans, so it didn't take long for us to "get with the program". It turns out, that because Costco sells larger quantities of the high-quality groceries (which means the prices are so attractive), we were staying home to eat up the "more food" we were buying. Yet because of the discounts, our grocery bill still was slightly lower. We were going to our regular grocery store half as often and not buying as much. We seem to be spending about $100 less a month on average on groceries.

DH and I are serious foodies. Some might even call us food snobs (fair enough). We've really been delighted at high quality of the produce, fruit, greens, seafood, meat etc., available and yet many a true bargain. It's hard to find a one pound box of organic salad greens for $3.99 most places. The fruit has been amazing.

We don't have a stringent food budget. We enjoy good food and wine, and so this is an area we are allowed to "splurge" for quality of life reasons . So, I have been quite surprised that our expenses have dropped so much. That is our personal "Costco Effect".

 

[Midpack]

Wow, that would be a 21% reduction in our actual YTD grocery expenses. We've looked at Costco several times, but never joined - yet.

We're foodies too, though we 'restrict' ourselves to dinner out twice/week on average, plus the occasional breakfast, brunch/lunch. May be TMI, but our grocery expenses are only 24% more than dining out expenses.

 

[FUEGO]

We experience the same thing. Except we're a little less foodie and more low brow. It's called the "Aldi Effect". Dirt cheap produce and vegs that are generally of very good quality. It makes eating healthier easier.

I know what you mean - we try to eat up whatever is in the fridge, so we rarely have a time when the fridge is nearly empty and we say "there's nothing to eat, let's go out". I also like Aldi over Costco because you can buy in small portions usually. Allows more variety without waste or the feeling of delicious food fatigue ("ugg we are only 1/4 the way through this three pound tub of delicious hummus").

 

[audreyh1]

Wow, that would be a 21% reduction in our actual YTD grocery expenses. We've looked at Costco several times, but never joined - yet.

We're foodies too, though we 'restrict' ourselves to dinner out twice/week on average, plus the occasional breakfast, brunch/lunch. May be TMI, but our grocery expenses are only 24% more than dining out expenses.

I got their AMEX reward card, and when I first used it, I got a credit that matched the Costco annual fee. Was that by design? I have no idea. Still - this year's shopping is membership fee free.

I am not a "warehouse shopper" by nature, but I find the Costco environment just fine - especially now that I know where everything is. It's good to avoid on the weekends though. Excellent, excellent, excellent butcher shop.

Get a buddy that has a membership to take you in and see. And you can pay for stuff yourself (AMEX, debit card or cash) on your friend's membership card. That's why they let my cousins do.

 

[Midpack]

I got their AMEX reward card, and when I first used it, I got a credit that matched the Costco annual fee. Was that by design? I have no idea. Still - this year's shopping is membership fee free.

I am not a "warehouse shopper" by nature, but I find the Costco environment just fine - especially now that I know where everything is. It's good to avoid on the weekends though. Excellent, excellent, excellent butcher shop.

Get a buddy that has a membership to take you in and see. And you can pay for stuff yourself (AMEX, debit card or cash) on your friend's membership card. That's why they let my cousins do.

We've been several times, they allow visitors (you have to listen to a spiel, but I have no problem with 'no, thanks') and DW has a Costco card thru work, though it's not supposed to be used for personal (and we don't, even though we could). Our local Costco is nice enough, but the quantities are just HUGE for 2 people. I can certainly see how it would be even more appealing for a (large) family.

They also have a reasonable selection of wines at ours, that surprised me. Maybe one day. We've always thought we'd join when we have a major purchase and can make back the upfront fee ($50-100 IIRC) with our first purchase, but we haven't found a major item there we'd actually buy otherwise -yet. Thanks...

 

[HFWR]

I'm a foodie, if by that you mean I "eat food"...

I buy mostly coffee, frozen fish, fish oil, and paper goods from Costco. Well, and motor fuel...

I do not wish to deal with large quantities of fresh food, so I don't buy produce there. Their meat is good, but I'd be more likely to buy there if they carried grass-fed. Pizzas are a great bargain, but I prefer very thin crusted pizza.

Plus, the local Tom Thumb grocery where I usually shop is on the route to/from w*rk, and it's much easier to grab a few things and be in and out in a few minutes, versus fighting the crowd at Costco.

 

[MichaelB]

If Costco carried more organic options they would clean up. When we grill for a group we get their lamb chops or whole tenderloin and there is never any food left over.

 

[Midpack]

If Costco carried more organic options they would clean up. When we grill for a group we get their lamb chops or whole tenderloin and there is never any food left over.

WholeFoodsCo

 

[audreyh1]

If Costco carried more organic options they would clean up. When we grill for a group we get their lamb chops or whole tenderloin and there is never any food left over.

We are nowhere near a Whole Foods - actually the closest one is ReWahoo's! 250 miles away in San Antonio. But between Costco, HEB and Sprouts I do OK.

HEB has an excellent line of high quality, "natural" meat and they also carry organic meat. I love their lamb (US sourced), but it's super $$$$. Costco carries Australian lamb that is outstanding quality (and really, Australian lamb is raised by strict standards) and is waaaaay cheaper than HEB lamb.

Costo has organic chicken (whole and breasts) and ground beef.

 

[FIREd]

I can't really shop at Costco even though it's down the street from me. I don't have room to store large quantities of food or other products. So I walk to Wholefoods several times a week and buy only what I can carry back home.

 

[W2R]

We are getting our first Costco in the New Orleans area sometime in the next year or so. Construction on the (fairly modest sized) building has begun, about four miles from my home.

[...]the local Tom Thumb grocery where I usually shop is on the route to/from w*rk, and it's much easier to grab a few things and be in and out in a few minutes, versus fighting the crowd at Costco.

Because of the neighborhood where our new Costco will be located, we expect it to be completely jammed/overwhelmed with gigantic crowds most of the time. Maybe we can go there early on a Sunday morning sometime when it is not as crowded. I am curious about Costco and would love to check it out.

Audreyh1, glad to hear that your food expenses have gone down, while maintaining your usual high standards! That is always so nice.

 

[rodi]

If Costco carried more organic options they would clean up. When we grill for a group we get their lamb chops or whole tenderloin and there is never any food left over.

Our costco carries a HUGE amount of organic food. Both in the meats and in the more processed food. (by processed I mean food that is in a carton or box.) Examples: organic granola, organic quinoa, organic chicken broth)

We regularly buy organic chicken roasters at 99c/lb. And their organic hamburger is awesome.

Now our costco is probably a bit different than ones elsewhere - we have a test kitchen so there are a lot more "food samples" as you shop. It's the original "Price Club Warehouse" (Price club merged with costco in the late 80s early 90s... )

If you're including booze in your grocery budget - costco will *definitely* have an impact on the bottom line.

We're a family of 4 - 2 growing pre-teen boys who love fruit and salad... I have *no* trouble moving the volume of food through.

 

[audreyh1]

We experience the same thing. Except we're a little less foodie and more low brow. It's called the "Aldi Effect". Dirt cheap produce and vegs that are generally of very good quality. It makes eating healthier easier.

I know what you mean - we try to eat up whatever is in the fridge, so we rarely have a time when the fridge is nearly empty and we say "there's nothing to eat, let's go out". I also like Aldi over Costco because you can buy in small portions usually. Allows more variety without waste or the feeling of delicious food fatigue ("ugg we are only 1/4 the way through this three pound tub of delicious hummus").

The volume is a little challenging for a 2 person household. So we don't go that often . About every 2 to 3 weeks, especially if we need to fill the gas tank.

Since Costco is based in Seattle, they often carry some of my favorite goodies from the Pacific Northwest - fruit, seafood, etc. A couple of weeks ago, there was a bag of gorgeous d'Anjou pears from Yakima WA. They were in perfect condition (Costco really knows how to handle fresh fruit and maintain it in prime condition) and just a few dollars so we had to buy it. We ate a few, then I had to make a pear almondine tart, and then we had to make a chocolate pear tart, ate a few more, and the last one made it into some sangria. Whew! There must have been a dozen large pears for the same price of 3 or 4 in a regular store.

 

[audreyh1]

Our costco carries a HUGE amount of organic food. Both in the meats and in the more processed food. (by processed I mean food that is in a carton or box.) Examples: organic granola, organic quinoa, organic chicken broth)

Now our costco is probably a bit different than ones elsewhere - we have a test kitchen so there are a lot more "food samples" as you shop. It's the original "Price Club Warehouse" (Price club merged with costco in the late 80s early 90s... )

I see quite a few organic fruits and veggies in ours.

 

[audreyh1]

Audreyh1, glad to hear that your food expenses have gone down, while maintaining your usual high standards! That is always so nice.

Actually, my home food quality standards have gone up quite a bit! It was quite good before, now it's excellent.

 

[MichaelB]

We are in the heart of Whole Foods country. Around here it's also known as Whole Paycheck.

Last week we bought a pecan pie for Thanksgiving. We have had one from them many times in the past. This year they added a new ingredient - corn syrup. They have carried out an amazing transformation from a small, premium-priced grocer focused on organic, healthful products to a large scale grocer focused on marketing a healthful foods image with a mix of organic and healthful foods and the same stuff everyone else sells but with different packaging. Their branding effort has been very successful.

 

[audreyh1]

We are in the heart of Whole Foods country. Around here it's also known as Whole Paycheck.

Ha ha! You can't argue that. We used to live in Austin TX (headquarters for Whole Foods) and shopped there for years before they launched on to the national scene. And we also called it Whole Paycheck. After years of full-timing I got used to not having a Whole Foods all the time, otherwise I might not have been able to settle down here!

But it's good to know Chicago is a major Whole Foods city. It's really an amazing store, and I'm glad they've been wildly successful. Actually, the TX HEB chain is so great because they have to compete with Whole Foods Market.

I suspect my grocery bills were the highest when I lived in Austin........

 

[W2R]

We are in the heart of Whole Foods country. Around here it's also known as Whole Paycheck.

Yes, here, too! The Whole Foods in my area opened up in 2004, and is located close to my house (between my house and F's, so I pass it frequently). Before it opened up I thought it would be wonderful and that I would be their best customer. After seeing the prices, well, I haven't been back since 2004. I am sure people get what they pay for at Whole Foods, but it is not for me.

 

[Sarah in SC]

Michael that sounds about right for the wholepaycheck here, too. I wander around in there infrequently and am astonished that they aren't really selling all that much healthy stuff.

I keep resisting the Costco membership, but we have friends who are crazy for that place. But I am of the opinion that at least for us, not seeing stuff you want to impulse buy is the best way for me to curtail extra expenses. If I never see the xyz product on display there, I won't want it. I'd like to think I was better than that, but history suggests a different story.

 

[audreyh1]

They also have a reasonable selection of wines at ours, that surprised me. Maybe one day. We've always thought we'd join when we have a major purchase and can make back the upfront fee ($50-100 IIRC) with our first purchase, but we haven't found a major item there we'd actually buy otherwise -yet. Thanks...

They do have a great wine selection, I think they are famous for it. And they have a group of wine buyers that do a lot of tasting for their selection. It's the only place here that I can even find a reasonable selection of WA and OR wines. But since I can order my favorites directly from the winery, it's not such an issue for me anymore.

 

[rodi]

We are in the heart of Whole Foods country. Around here it's also known as Whole Paycheck.

Last week we bought a pecan pie for Thanksgiving. We have had one from them many times in the past. This year they added a new ingredient - corn syrup. They have carried out an amazing transformation from a small, premium-priced grocer focused on organic, healthful products to a large scale grocer focused on marketing a healthful foods image with a mix of organic and healthful foods and the same stuff everyone else sells but with different packaging. Their branding effort has been very successful.

Corn Syrup? That is a big change for whole foods. Is there corn syrup that isn't from GMO corn?
(It's one of the reasons I bake my own pecan pies... pie crust from organic butter (vs shortening) and I use brown sugar rather than corn syrup.)

Oh - that's another organic ingredient we get at costco - organic butter. And when we do a lot of pies (like at thanksgiving) organic heavy whipping cream (for the "real" whipped cream.)

 

[kevink]

For us the full "Costco Effect" can only be had when one lives in a city that has both Costco and Trader Joe's. It saves us enough money that both stores being present are now part of our retirement destination requirements when/if we return to the U.S. (we're currently full-time in Mexico). At Costco the savings on olive oil, organic chicken and real (Reggiano) parmesan alone more than pay for our membership, while at TJ's the wine, beer and chocolate (see, I've covered all the essential food groups) probably save us 40-50% over all other options.

As for Whole Foods, the company I worked for got bought by them and Michael B's assessment is spot on.

 

[audreyh1]

Oh, right, I forgot about the cheese! Awesome cheese.

We found that cutting the big blocks of cheese in say four pieces, and then vacuum packing three of them, the vacuum packed ones last for up to the sell-by date if not longer. That's how we handle the larger quantity.

And, yes, the parmesan is incredible.

 

[Midpack]

We are in the heart of Whole Foods country. Around here it's also known as Whole Paycheck.

Last week we bought a pecan pie for Thanksgiving. We have had one from them many times in the past. This year they added a new ingredient - corn syrup. They have carried out an amazing transformation from a small, premium-priced grocer focused on organic, healthful products to a large scale grocer focused on marketing a healthful foods image with a mix of organic and healthful foods and the same stuff everyone else sells but with different packaging. Their branding effort has been very successful.

We shop at Whole Foods on an exception basis, though mostly due to distance from home. We've never bought anything other than food items there, the personal care items have always been outrageously priced. But I'll have to look more carefully next time (probably this Sat on the way home from Oakbrook), I hadn't noticed the transformation that's taking place...thanks for the heads up.

 

[marko]

Corn Syrup? That is a big change for whole foods. Is there corn syrup that isn't from GMO corn?
QUOTE]

You do realize that corn itself is the first and original 'genetically modified' crop, right?

If it wasn't for massive human-involved genetic modification/coercion, there would be no corn at all, it would just be grass.