Originally Posted by kf5nd
I shop at Costco too, using my car, but...
If you buy $100 at Costco, and you figure you save, what, 10% over the grocery store ? That's a sheer guess. OK, let's go with it, let's say you save $10.
You'd BETTER have driven less than 20 miles RT to go there. At 20 miles you're at breakeven, because the car costs you, on average, 50 cents per mile (2007 IRS mileage allowance for businesses is 48.5 cents per mile).
So what are you REALLY saving, after you blend in the cost of motorized transportation?
Note - if you think you save more than 10%, and you live closer to COSTCO, then the math changes accordingly.
My general observation is that you don't save much at all at the "wholesale" clubs. We have a Sam's club that I have gone to on occasion. I maintain an excel data sheet in my hand held with prices of staple goods at the various places I shop. Typically Sam's was near the top of the list in higher prices, mainly on things like coffee, sugar and paper goods. Most people have been brainwashed into thinking just because it is in a big package it is a good deal. You also have to take into the consideration; are you going to use all of the bulk product you saved all that money on? Or are you going to be throwing part of it out because it goes stale? My lovely wife loved to buy the huge boxes of Honey Nut Cheerios, total savings over the small box might have been $0.25 or so. But typically the last 1/4 of the box would be stale and have to be tossed...no savings there. My time is also worth something. I can ride my bike 1.5 miles to the nearest grocery store, do my shopping and be back home in under 45 minutes. The trip to Sam's club requires the car and at least 1.5 hours for driving and shopping.
Aaron
