Costco and Sam’s Club have a number of similarities. Not only are their business models comparable, but both stores offer huge discounts on groceries and household goods. Additionally, both wholesale clubs offer a basic membership and an advanced membership with cash back on purchases.

But there’s already a price difference between Costco and Sam’s Club. And once Costco’s recent fee increases take effect on September 1, that difference will be even greater.

Currently, a Gold Star membership at Costco costs $60 per year, compared to $50 at Sam’s Club. On September 1, the cost of this basic membership at Costco will increase to $65, a $15 difference from Sam’s Club.

At the same time, the current Executive membership fee of $120 will increase to $130 in September, making the Upgrade membership at Costco $20 more expensive than the $110 Plus membership at Sam’s Club.

Given the price difference, you may be tempted to switch from Costco to Sam’s Club. But is that the right move? It depends.

It is a question of accessibility and convenience

Maybe you’re lucky enough to have both a Costco and a Sam’s Club store near you. And depending on your shopping needs, you may be able to get comparable savings at either store. If that’s the case, and there really isn’t a clear benefit to sticking with Costco, it might be worth switching to Sam’s Club to save on your membership fee.

However, if you are happy with your Costco membership and are used to shopping there, you may want to stick with it if you can afford the higher cost. And you should particularly Consider sticking with Costco if its location is much closer to your home than Sam’s Club.

The best way to get value from a wholesale club membership is to use it regularly. The more money you save on purchases throughout the year, the easier it will be to recoup your membership fee and then some. And if you have an upgraded membership that gives you money back, you’ll likely accumulate more money the more often you go to the store.

So even if Sam’s Club costs less, Costco is probably the better choice for that reason alone if the nearest big box store is 20 minutes away but Costco is seven minutes down the road. And even if it’s reasonable to drive 20 minutes, it’s OK to pay a little more for the convenience of driving less.

A reason for a change

All in all, if you’re happy at Costco and it’s more convenient, you shouldn’t necessarily be put off by the extra cost unless you can’t afford the membership fee. However, if you’re paying for an upgraded wholesale club membership, that’s a good reason to consider switching to Sam’s Club.

A Sam’s Club Plus membership gives you early access to the store. This used to be a benefit of the Costco Executive membership, but it’s no longer.

If you don’t like pushing through crowds, it’s well worth getting to Sam’s Club before it opens for general membership. That might be a reason to consider switching, in addition to the $20 difference in membership fees.

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