Should you spring for the Sam’s Club promotion?

Okay, so the recession has knocked many traditional retailers flat on their backs. But the so-called big-box stores like Costco and Sam’s Club are actually profiting from the downturn as more people seek bargains in bulk. So maybe we shouldn’t be surprised that Sam’s Club is now offering a special promotion for people who’d like to give warehouse shopping a try.

Here’s the deal: For three days starting this Friday, Sam’s Club will give you a 10-week trial membership for just $10, well below the usual annual fee of $40.

There are hitches of course...

For starters, you have to join in person at one of the 594 stores across the country; you can’t sign up online. And if you do the math you’ll see that the cost of this membership is – duh! – $1 per week, as compared to just 77 cents a week at the regular price.

But Sam’s is betting that the timing of the promotion – when people need all the discounts they can get – will help swell its ranks of members, already 47 million strong. “We’re also trying to bring something positive to people in this troubling economy, says Susan Kohler, senior manager of corporate communications for the Wal-Mart-owned chain.

Well, maybe. But we wondered, given that this is the second weekend in a row that Sam's has run the promotion, whether Sam’s archrival Costco plans to dangle any similar carrot. Sorry, says Richard Galanti, chief financial officer of the 398-store, 40-million-member chain. With business booming and membership renewals at an all-time high (87 percent), Galanti says the company already offers its customers ample bang for their $50 annual membership.

Which chain is better? In years of surveying readers about their shopping experience, Consumer Reports gives Costco the edge (see our latest head-to-head comparison of warehouse superstores). But Sam’s is no slouch either, and it offers a superior warranty for big-ticket electronics gear. So if you’ve got a Sam’s Club near you, and are inclined to try warehouse shopping, this might be the time to leap.

Comments

[dawn]

Actually when I signed up at Costco a couple weeks ago, they gave me $10 off. It was a promotion deal where technically you were supposed to have a friend refer you, but the nice membership woman just grabbed the first customer who walked by us and asked them to be my 'friend' for the sign up. We both got our choice of a $10 gift card, case of water, or a pizza.

TOD REPLIES: Hey, this is great. It must be like the credit card companies where you call, threaten to cancel your card, and they lower your interest rate or refund an annoying fee. Have others seen the same thing at the big-box stores or elsewhere? Let me know via a comment here or an email to "tightwad at cro dot consumer dot org" (and note the "org" -- we're a non-profit!). Thanks for the comment!

[BlueRaja]

Wait, which is it - $40 or $50 annually?

TOD REPLIES: Sorry, may have been confusing. Sam's is generally $40, and Costco is generally $50 -- though, as you can see from our post and the comments, the price is -- let's say -- somewhat elastic!

[Mel C]

Any comments regarding BJ's??? I would think it would also rank up there with Sam's and Costco, particularly since Costco's hours are notoriously awful.

TOD REPLIES: And Costco also (at least sometimes) has a policy where the "business" members can get in for longer hours than the regular members. Haven't checked BJ's but worth a look.

[TJ]

BJ's was very disaapointing when I went in with a friend. I like Costco, because it has better food/produce and usually sizes I can use in my home without waste. Sam's is good for a few big ticket, so this deal for a few weeks might be good, if you want to do a few quick big purchases. I also like that Costco has organic options, which I have not seen at any other warehouse store.

[Dave S]

Costco provides excellent benefits including health insurance and I believe an average wage of $17/hr. They have initiated some of the best food controls in the industry. They mark-up merchandise a maximum of 15%. In this day and age consumers should consider including how a company treats it's employees and community as a factor when deciding where to spend their money.

[Peter H]

We has a choice of Sam's, Costco or BJs.

The decision came down to the store that allowed us to buy a number of slowly used items in single sizes. We don't have 10 kids, so we would prefer to buy one 48 oz bottle of shampoo and not a 3 back of 48 oz bottles. We also wanted to buy one large unit of vitamin C instead of a 3 pack of the same vitamins. Sam's and Costco were the ones with the 3 and even 6 packs.

For us the Choice was BJs with the option to buy single club-sized units.

And as a techie, I found that BJs had the better and wider selection of HDTVs and other electronics than did Sams.

[Randall Fuhr]

I am a member of BJs "wholesale" club. Unfortunately, I cannot rejoin when my $45. a year fee reappears in December. There are several reasons. First, I can buy many items lower elsewehere. Travel to BJs is costly. Supermarkets are closer to home. Second, BJs doesn't carry all the items that I originally purchased when I joined last year. After talking the a manager my request for these items was ignored, i.e. kosher products. Finally, the checkouts are lengthy and time consuming. I prefer a local Publix to exasperating long lines. I also have not used their internet coupons. Little "real" values. Just excess paper to throw away. Thanks.