I shop at Costco on a weekly basis. This is necessary for my household, since we’re constantly running out of products like milk, produce, and snacks (especially, ahem, the snacks).
But I like to time my Costco runs strategically to when my minivan’s gas tank is getting low. Buying gas at Costco commonly saves me money compared to the cost of filling up elsewhere. So it makes sense for me to buy gas when I’m already there to do other shopping.
But buying gas at Costco isn’t always your best move. Here are three reasons not to do it.
The Temptation of Unplanned Purchases
When you visit Costco with the aim of just refueling your vehicle, the sprawling store layout and vast inventory can easily lead to impulse buys. The environment is designed to trigger consumer behavior that favors spending. From seasonal displays to strategically placed bestselling items, every aisle might tempt you with products you hadn’t planned on purchasing. This is a classic example of retail psychology at work, where the store’s setup encourages additional spending beyond what was originally intended.
Managing these impulse spending habits requires discipline and planning. Before entering Costco, it’s wise to have a clear and specific list and stick to it rigorously. However, the sheer variety of items and the potential savings on bulk purchases can make sticking to your initial shopping list a significant challenge. It’s beneficial to remind yourself of your financial goals and budget control strategies before and during your shopping trip to help mitigate the risk of unplanned expenses.
- Make a shopping list and adhere strictly to it.
- Avoid wandering through non-essential aisles.
- Set a spending limit before entering the store.
- Shop with a clear mind and full stomach to avoid impulse food purchases.
- Consider shopping at less busy times to reduce browsing temptations.
Comparative Gas Prices Elsewhere
While Costco often offers lower fuel prices as part of its membership benefits, it’s prudent to consider economical choices by comparing prices at different gas stations. Tools like GasBuddy can be invaluable in this process, allowing you to check which nearby stations offer the best deals. Some stations might offer significant cash discounts for paying directly with cash instead of using a card, which could offer more budget-friendly options than Costco’s prices.
The convenience of filling up while you shop is undeniable, but the actual cost savings should be calculated considering all factors, including the potential extra distance you might need to travel. Sometimes, a gas station closer to your home or along your regular commuting route could end up being more economical, especially when factoring in the time and fuel used to drive further to Costco.
Lack of Cash Back Rewards on Gas
One apparent drawback of purchasing gas from Costco is that these purchases do not qualify for the 2% cash back offered by their Executive membership. This exclusion reduces the financial incentives that typically come with this membership tier. If maximizing rewards on every purchase is part of your financial planning, this might be a significant consideration.
To counterbalance this, using a credit card that offers excellent rewards on gas purchases can be a smart move. Be strategic in selecting a credit card that aligns well with your spending habits and rewards goals. This approach ensures you are still capturing some value in the form of credit card perks, even when the store’s loyalty program doesn’t extend benefits to fuel purchases.