Paying a membership fee to join Costco (NASDAQ: COST) or Wal-Mart’s (NYSE: WMT) Sam’s Club makes it tempting to shop at the warehouse clubs as often as possible.
Since you have paid the price of admission ($55 a year for Costco and $45 for Sam’s Club), it seems logical to think that the more often you take advantage of it, the more you’ll save. Still, there are traps to avoid. Even though these clubs have good prices on most items, they are not the cheapest choice for everything they sell.