MESA, AZ - If you're like millions of Americans, in your wallet right now is a membership card to a warehouse club.
The three major chains, B.J's Wholesale Club, Costco and Sam's Club, are seeing a spike in membership. But are you really saving money or getting sucked into spending more than you intended?
"My pantry is full most of the time," said warehouse club shopper Jessica Turner of Mesa.
Her pantry is already stuffed as she makes even more room for her next trip to Costco.
"At least once weekly," Turner explained when asked how often she shops at Costco.
In fact, Turner calls the Costco just two miles from her house her neighborhood grocery store. She stocks up once, sometimes twice a week on a variety of items including paper towels, produce, even gas.
"You're going to pay about 10 cents less than you would at another gas station," smiled Turner.
Buying in bulk can be a bargain and the three warehouse chains are cashing in. According to a recent AARP study, Sam's Club, Costco and BJ's sold more than 128 million memberships last year. That's up from 122 million in 2008.
Nearly half of each company's net worth comes from annual membership fees.
Turner is spending $100 a year after being persuaded by a Costco employee to upgrade her basic membership to the executive program. As an Executive Member, Turner is now entitled to a rebate of 2 percent on her total yearly purchases.
"Last year I think we got back over a $100," Turner explained.
Turner is hoping to double that this time around, but she'll have to spend $5,000 this year just to break even.
When Turner was asked on average what she spends at Costco she said, "Weekly if you round up it's going to be about $100. At the end of the month it's going to range between $375 and $400."
Turner, a high school teacher, showed us the receipt from her last trip to Costco. She spent almost $95 on less than 10 items. Just three days later Turner went back to Costco and this time her bill was just under $184. She spent nearly $300 in three days.
"I realized I eat five to seven servings of fruit and vegetables daily so I will consume a lot of it," Turner said.
"I'm an economist and I have a Costco membership," laughed economist Jim Rounds. "It's great if you're going to buy a television and you save $300 off the TV compared to say another competitor. That will pay for your membership 3, 4, 5 years depending on the level of membership that you have."
Rounds says there are some good reasons to club shop, but warns about the so-called Costco effect.
"I'll go there with my wife and she might go and check out the produce and I go and look at the hardware and I end up buying something and spend $300-$400 bucks on things you don't need," Rounds said.
Turner says she needs 30 rolls of toilet paper, a 6 month supply of deodorant and a huge container of peaches.
When asked if Turner thinks it's worth it she replied, "I certainly do think it's worth it."
There are some items that may be worth buying at a shopping club. Consumer Reports says eyeglasses are discounted 20 percent for members. Plus, prescription drugs are discounted and you don't need a membership to use the pharmacy at Sam's club and Costco. And the AARP report says wine and beer can cost 35 percent less than at a liquor store.
7 Ways to Save at a Shopping Club:
If you're an undisciplined shopper, economists say don't stray from your list. Plus, AARP recommends the following rules for saving when you join a warehouse club.
1. Take only what you can use: A 61.9-ounce box of cereal might sell for less than half the supermarket equivalent, but good luck finishing it before it goes stale. A small household might take a year to use a large container of detergent. Also, make sure you have space to store items.
2. Divide to conquer: Shop with friends or family members, splitting apart the big packages to share.
3. Buy before it flies: Product lines change frequently, so stock up if you see an item you really need.
4. Don't swear off your local supermarket: Weekly store promotions at traditional grocers can offer bargains on staples, such as cereal and laundry detergent, that rival those at the clubs, a 2007 Consumer Reports study found.
5. Look beyond the tag: Don't compare appliances or electronics by price alone. These products can be tailored to specific retailers, which offer "unique" models with different features like extra computer memory.
6. Check out the checkout policies: Costco accepts only American Express credit cards; if you don't have one, bring a debit card, a checkbook, or cash. Sam's Club and Costco do not accept manufacturers' coupons; BJ's does. Return policies are generous, but they vary; BJ's requires most items to be returned within 30 days. Sam's Club and Costco have a 90-day return policy for most electronics.
7. Sum it all up: Calculate how much you spend at a warehouse store. If it's more than $2,500 a year, consider springing for a more expensive membership level - you'll
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