Costco is known for bulk purchases and special deals, but they use tactics you may not know about to get customers to spend more money.
Understanding these tactics is one of the best Costco hacks to save money rather than going over budget, because it helps you be mindful of savings instead of giving in to impulse buys.
Here are 15 clever ways Costco gets you to spend more money.
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Running limited-time deals
Running limited-time offers makes customers think they'll miss out on a great deal if they don't buy the item immediately. It leads to a sense of urgency and more impulse purchases each time you're there.
When you're tempted to snag a limited-time deal, consider whether you actually need it or if you're just being led into a quick decision.
Giving out free samples
Free samples are sometimes the only reason shoppers choose Costco for their purchases. It makes you slow down and have positive feelings about products you didn't consider before. Some customers may even feel required to buy the item once they've received their sample.
To avoid the temptation of buying, be mindful of how they affect your purchasing decisions as you enjoy the freebie.
Rotating inventory
Costco frequently rotates its inventory to encourage shoppers to try new things, and frequent customers know this, often worrying a new favorite won't be available for long. As you shop, stay on task and stick to your list. If something is overly tempting, ask yourself how much you'd truly use the item and if you need it.
Bulk selling
Selling in bulk forces customers to buy lots of product, even if they can't use it all before it expires. It feels like a bargain because the per-unit cost is lower, but it makes your trip more expensive.
When you need items that only come in bulk, choose ones with a long shelf life and make a plan to use them all up before it goes bad.
Seasonal Stock
Displaying seasonal items gets shoppers snagging them, no matter the cost. They only carry a limited amount of each item, and display the higher-end choices in a place you can't miss.
Instead of rushing to grab the trendy, often viral, seasonal finds at Costco, think of what you really need for these times of year. Consider the cost compared to how often you'll use it.
Minimal decoration
With a low-key presentation, like shrink-wrapped pallets and basic metal shelves, shoppers get the impression that they'll get lower prices by shopping at Costco.
It gives the impression that Costco sacrifices those things to offer lower prices on its items. That's not always the case, though, so check the price at other retailers to see which is a better deal instead of assuming you're getting wholesale prices.
Oversized carts
The oversized shopping carts at Costco are designed to hold the bulk items they sell, but there's more to it than that. With an oversized cart, it'll take more products to fill it, sometimes leading to you spending more. To avoid giving in to this tactic, don't keep filling your cart once you're finished with your list.
Impulse items near the checkout
Costco's tactics don't end when you head to the checkout. When you get near the checkout, you'll be faced with last-minute temptations on high-margin items.
Instead of grabbing snacks, magazines, and gadgets, remind yourself that those weren't choices you ever would have considered if they weren't strategically placed there.
Limited Choices
Costco doesn't offer as many brands of each item as you'd find at other stores. By doing this, they're making your decision easier, which makes it easier to choose, potentially making you more likely to put it in your cart.
The limited choices also sometimes push customers into buying more than they need when bulk choices are all that's available.
Membership exclusivity
Requiring a membership leads customers to shop there more often, even when the same item is available elsewhere. It's your (potentially subconscious) way of making the membership worth it. If you don't go often, consider dropping to a basic plan or sharing a membership with someone else to offset the cost.
Treasure Hunt Layout
Costco doesn't place its items in a way that allows you to grab essentials without seeing anything else. Forcing you to move around and search the aisles makes you more likely to buy things impulsively.
Before you know it, you're trying to fit a new kayak into your small car. As you pass these choices, keep a running total of how much you've spent.
Placing essentials in the back
Costco often places its essentials, like toilet paper, milk, produce, bread, and eggs, toward the back of the store, leading customers past items they weren't planning to buy. While they may want you to grab a few of the temptations, stay focused and remember you're only there for specifics.
Low-priced favorites
Costco is willing to lose money on items that customers come specifically for. They know that they'll make up for the loss when those customers buy other items once they're there. One item they do this with is their rotisserie chicken, keeping the price at only $5 even as grocery prices increase.
Placing expensive items in the front
The jewelry, electronics, and other high-priced choices are placed at the front of Costco. They use big sale signs to make people think they have to get them now.
Seeing high prices as soon as you enter the store entices you to buy more further in the store, because your brain starts viewing anything lower than the high prices up front as a bargain.
The food court
The food court draws people in with an affordable lunch. Or, if you went just for essentials, the food court may turn into an unplanned purchase after your shopping.
After you've checked out, if you head over for a quick meal or snack, you may see something in someone else's cart and decide to go back for it. Set a rule for yourself, so that you won't go back into the shopping area once you're in the food court.
Bottom line
Knowing these tactics doesn't mean you should avoid Costco, because they absolutely have great deals on some items. When you know what their intentions are, you'll be more likely to resist.
When you shop for essentials at Costco, you can also save money on groceries by paying with a cash back credit card for rewards.
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