Why I Won’t Pay a Fee to Shop at Costco

My husband loves Costco. Many of our relatives love Costco.  Our friends often tell us they are about to go out “on a Costco run.” I think I may be the only person in this neighbourhood who doesn’t “get it.” I think Costco is ok but I won’t pay a fee to shop there.

At the end of this month our Costco membership is expiring. We bought the membership last year so that I could get snow tires I liked, in stock, at a good price, and installed for our new Camry. The savings more than paid for our annual fee (especially since I had a promotional rate for a new membership.) This year, though, we don’t need anything that could generate a similar saving so we’ll be letting our enrollment lapse. Today I’ll make one last tour of the store to see what I’ll be missing.

Why Costco Doesn’t Work for Me

This is all about me. I realize it may be very different for you!

Costco Every Day Low Prices are Not Quite Low Enough

I’ve been a pricing cycle shopper since the university days when I had to budget to the penny. I am basically at the point where I can sense whether it’s facial tissues or bagels that will be coming on sale this week and at which stores. Because we have the luxury of extra money in our budget, I can afford to pre-buy enough staples and dry goods to last from one sale till the next.

So why would I want to buy canned soup, flour, cocoa powder or tissues at Costco? While their prices are good compared to smaller stores regular (read: high) prices, they are no better than those same stores’ sale prices. In fact, Costco’s prices are often higher than the sale prices I pay at the regular grocery stores.

Costco Bulk Packaging Is Too Large

I like some of the buns Costco bakes. Unfortunately, no one else in my immediate family does and none of my extended family lives very close. So I can buy a package but I then either have to freeze several dozen buns, or throw the stale ones out. Neither option appeals to me. (I did give extra buns to neighbourhood friends several times but it feels strangely awkward wandering around offering half-bags of buns or quarts of strawberries.)

Other items are just ridiculously large. Why would I want 4 boxes of baking soda? It takes the rind and juice of one lemon to make my lemon loaf, so why would I want a bag of lemons? I looked at aluminum foil today and tried to think how long it would take me to use 300 feet. (Especially since I ask myself every time I reach for foil whether this use justifies the strip mines for bauxite in South America.)

Costco Photos From Our Location Didn’t Match Walmart for Quality

Admittedly I haven’t tested photo prints in over a year, so I probably should send a few again to check if anything has improved. But just over a year ago I needed quite a few prints of the same few photos. So I sent a batch online to Costco and a batch online to Walmart. I selected Glossy for both stores. The Walmart prints were noticeably crisper and brighter than the Costco ones. The price was the same.

I’m sure the photo equipment probably varies from store to store. This information likely only applies to my closest Walmart and my closest Costco.

Our Costco Has a Terrible Cash Register System

I think it’s just our Costco but anytime I’ve shopped there I’ve always had to line up for at least 10 minutes to get to a cash register. That includes weekdays and weekends, daytime and evening. That’s just sad.

Again, that doesn’t mean it’s like that at other stores. But I’m not basing my decision on whether to renew or not on whether people in, say, Kingston can get through the checkout in two minutes.

I’m a Brand Buyer and Costco Often Does Have What I Use

As someone who has shopped for a family for over a decade, I’ve fallen into buying patterns. There’s a soap I buy because it doesn’t cause skin irritation for two of us. Costco has products by the same company, but not the version I find works best. There’s a kind of boxed soup stock I like to use when I’m in a hurry in my Minestrone recipe. Costco again has the same brand, but it only has the 0% salt version, and I prefer the 30% salt one. (Er, 30% of the amount of salt used in the original version of the boxed broth; it’s not actually 30% v/v salt!) The same story repeats for shampoo, cocoa powder, and honey.

Sometimes Costco even stocks the exact brand and formulation I want. That’s great; until I go back to get more and they’ve sold out and aren’t replacing it.

It’s just a nuisance that I prefer not to deal with. By shopping at other retailers I can get exactly what I want every time I walk into the store.

Reasons Why I Would Shop at Costco If There Was No Annual Fee

There are many things I like about Costco. It’s just the $55 that bothers me.

Costco’s Return Policy is Great

I agree that Costco has a great return policy. As a very careful shopper, though, it’s extremely unlikely that I would buy something anywhere that cannot be easily returned.

Costco Has Some Very High Quality Exclusive Offerings

I agree that some items Costco sells are not available elsewhere and for some of them it’s worth paying a premium. For example, I have relatives who can get great steaks at their Costco every time they shop there.

Costco Has Good Pharmacy Pricing

Luckily, I don’t really know this first hand as, touch wood, we haven’t needed any prescriptions and so on in years. However, I’ve read many places that Costco has very good prices for prescription and even over-the-counter medications. If I’m wrong about that, please leave a comment.

Costco Pays a Living Wage

Again, I only have this information anecdotally so it could be wrong, but I’ve been told that Costco pays its staff a more reasonable wage than many retail stores. That counts as a positive for a store for me.

Related Reading

Join In
Are you a member of the Costco cult? Or is it just another retailer? Please share your views with a comment.

Using the Message Centre Secure Email Function to Contact RBC Direct Investing in Writing

UPDATE: This article is historical, from 2013. I no longer invest with RBC Direct Investing.

I’ve used a variety of online discount brokerages and I’ve found that even though they all seem to offer the same products and allow you to do the same things there are small differences. So before I try certain investments for the first time, I like to clarify the details with the brokerage. I prefer to do that in writing. Then I can review exactly what they said and not just assume I heard something they never actually stated. RBC Direct Investing allows me to contact their support team using a secure email system; I can send them a message from within my RBCDI account and they reply within that system.

Do Other Online Discount Brokerages Offer a Secure Email System?

BMO InvestorLine offers a similar secure email system called MyLink.

CIBC does not offer a secure email system. You can write to them with general questions at their listed email address but they will not answer questions that they feel require more security. Instead you’ll wait for their email reply which will just tell you to phone them!

How to Use the Message Centre to Send a Secure Email to the RBC Direct Investing Support Team

  1. Sign in to your RBC Direct Investing account.
  2. Click on the My Home tab.
  3. Under the Your Communications bar, click on the appropriate phrase.
    For example, I click on: You have messages
  4. Under the Bar called RBC Direct Investing – Need Help?
    Click on the middle link: Send Secure Email
    OR
    Click on the Customer Support link in the top right side of the screen.
    Scroll down to the Send us a secure e-mail heading and click on the link to the Secure Message Centre.
  5. From the drop-down To: list select
    RBC Direct Investing
    (or RBC Royal Bank; RBC Dominion Securities; RBC Wealth Management)
  6. When you select RBC Direct Investing you will get another set of choices.
    In the Subject: box, select the radio button beside one of the following:

    • Account Opening
    • Transfers
    • Trade Inquiries
    • Fees & Commissions
    • Account Maintenance
    • Other Inquiries
  7. In the Message: field, type your question. There is a limit of 3000 characters.
  8. The system will automatically add your name and the date before sending the message.
    (It was interesting to me that it does not add your account or client number. BMO InvestorLine’s SecureLink adds your account number.)
  9. Click on the Send link.
    Your message will be saved.

To See Your Sent Messages

  1. Click on the My Home tab.
  2. Click on the You have messages link.
  3. Your Sent Messages are listed in a table. You can sort them by date, subject, type and to (who you queried) by clicking on the appropriate arrowhead.
  4. If your query was important, you may wish to copy it into a document and save it for further reference. I am not sure how long messages are stored online in the RBC DI Message Centre.

I found it amusing that if I I’m in the Message Centre screen and I click on the link Learn More About the Message Centre, I get an error message instead of more information. (I was hoping to find out if messages are automatically deleted after a certain amount of time. At BMO InvestorLine messages are deleted after 90 days so you have to cut and paste them into a document and save it elsewhere if you need them longer than that.)

To Read Your Responses from RBC Direct Investing in the Message Centre

  1. Click on the My Home tab.
  2. Under the Your Communications bar, click on the link: You have new messages
  3. The Message Centre will open.
    It is Divided into sections including

    • New Messages
    • Viewed Messages
    • Sent Messages

    Click on the Subject line for the reply you wish to read.

  4. You can sort messages by date, subject, type and to (who you queried) by clicking on the appropriate arrowhead.

Related Reading

Join In
Have you used the Message Centre? Did you find it did the trick quickly and easily? Please share your experiences with a comment.