How does sams club work

Discount retailers like Walmart Inc. Meanwhile, Costco and Sam's Club can offer even lower prices per item by selling goods, such as toilet paper, in bulk. The caveat is that you either need a large family to eat all of the food and use all the supplies you buy, or a method to preserve it canning or freezing.

Through the years, these bulk retailers have expanded and started to offer several other items, including electronics, vehicles, and vacation packages. These two retailers generate revenue from merchandise and product sales and membership fees. These memberships get you into the store and allow you to shop at the discounted prices online.

More importantly for Costco and Sam's Club, these memberships help create store loyalty. If you're paying to be a member somewhere, you're more likely to go.

In this article, we'll look at how the business models of Costco and Sam's Club are similar, but also breakdown why they are also very different, including prices, locations, and brand selection. Costco is considered the original bulk retailer, opening its first location in San Diego in Since then it's been selling bulk goods through its warehouse-style stores, cornering the market in many states.

Costco had stores as of the end of the fiscal year ended Aug. The company has been aggressively opening new warehouse stores over the years. In the fiscal year , Costco opened 16 stores, while it opened 25 in both and In terms of states where Costco is concentrated, it has stores in California, almost four times its number two state—Texas with Meanwhile, the state of Washington has 32 Costco stores.

Costco also has stores outside the U. This includes stores in Canada, Mexico, Japan, China, and other countries. Costco's U. Gold Level Executive members also get other discounts and benefits and the Costco Connection magazine. It's worth noting that Costco also offers a business-focused membership.

This includes two tiers as well: Business and Business Executive. One of the key benefits and perks of Costco's memberships is access to its fueling stations which often offer lower prices than other fuel stations , pharmacy, photo center, and rental car options. For business customers, Costco offers partnerships with payment processing, health insurance, bottled water delivery, and check printing services. Costco also has a co-branded credit card for members. The card, which offers tiered cashback, is considered a solid credit card for those that shop at the retailer.

The co-branded card offered by Costco and Citi can be used anywhere credit cards are accepted. Finally, it's worth noting that Costco sells more private branded goods than Sam's Club. As a shopper, you'll likely find more brand-name items in Sam's Club.

However, Costco offers its popular private brand Kirkland in its stores. Costco's private brand products, such as Kirkland, are cheaper than name brand products but are made by many well-known companies, such as Starbucks for their coffee and health care products company Perrigo for their formula.

Costco is a publicly-traded company under the ticker symbol COST. It has several smaller subsidiaries , such as Costco Travel and Kirkland brand products, but aside from that, the company has not branched out into a broad range of other brands and stores.

Financial positioning-wise, Costco is well-positioned. As far as business models, they're very similar—both sell memberships to a store where customers buy bulk items. One key difference is that Sam's Club did not expand to the same areas and product categories as Costco. Sam's Club operates stores across the U. Unlike Costco, which has been aggressively opening stores, Sam's Club has kept its store count relatively steady over the last few years. Its store count has been relatively stable over the last couple of years after closing 60 stores in fiscal Its state with the largest store concentrations are Texas with 82 stores, Florida with 46, and California with Like Costco, Sam's Club offers two membership levels.

The Club level includes access to all its warehouse clubs, as well as the ability to add additional cards. Overall, both of Sam's Club's membership tiers are cheaper than what Costco offers. Key benefits of a Sam's Club membership include access to its stores, as well as its fuel stations and tire and battery centers. Sam's Club also offers a credit card as well. Her byline has also appeared in Good Housekeeping and Marie Claire. How much is a membership?

And what are the different kinds of membership levels? Does the membership extend to SamsClub. Can I shop at the club without a membership? About your guide. About Sam's Club membership Why become a member? As a member, enjoy exclusive members-only pricing and special perks. Save on groceries and other essentials in bulk, as well as discover other extra special finds.

Connect with the club wherever you need it. See terms and conditions. Fuel savings - get member-exclusive prices on fuel at select clubs. Tire and battery center - stay safe on the road with free flat-tire repair, battery testing, and wiper blade installation. Add-on memberships - share your savings with up to eight additional members. Free shipping - get what you need straight to your doorstep , no minimum purchase.

Early shopping - get in before the crowds at select clubs. Free select prescriptions - feel better for less. Maximize your savings by taking advantage of these additional membership perks Pickup - select Pick up in club when you shop online, choose your pickup time and check in on the Sam's Club app when you arrive.

Your items will be ready and waiting for you. Need to stock up on ice cream or frozen veggies? Stock up on groceries, or refresh your space with curated picks for home and the outdoors.

You can also manage your membership, and check in for your Club Pickup orders, all with a tap. Travel savings - access exclusive discounts on movie tickets , major shows and events , and theme parks in all of the hottest destinations.