subject: What Is A Warehouse Membership Club? [print this page] What Is A Warehouse Membership Club? What Is A Warehouse Membership Club?
A warehouse membership club is basically a retail store meant for wholesale purchases only. These no-frills clubs offer products at wholesale rates, making them very attractive to both small business owners as well as bargain hunters. There is, of course, an initial membership fee that customers may have to pay to join the club and get the benefit of wholesale pricing. Most people make the mistake of getting carried away by the discounts without bothering to consider the hidden costs that these clubs usually imply. Let's look at some of them:
Travel costs: Warehouse membership clubs are not located in every nook and corner. Unless you are lucky enough to be living next to one, the fuel and time costs of traveling to a warehouse membership club can add up to quite a lot over a period of time.
Product wastage and spoilage: While you may pick up the supersize box of cornflakes because it is 1 dollar cheaper, you may find that your family stops eating it after some time and throws it away, nullifying any savings that you may have made. In many other cases, products get wasted by being stocked beyond its indicated shelf life. In either case, you are either wasting or giving it away (which may make you popular) but does not add up to any real savings.
Buying without need: Warehouse membership stores are a little bit like regular salesyou often end up buying what you don't need just because it is available at a bargain price. This may appear to be saving at the time, but it is really extra expenditure in most cases.
Promotions at local stores: Given the huge number of brands that we have in almost all categories, there is usually some kind of promotion or price off on at least one of them. People can often get as much savings by using their coupons than traveling 100 miles out to a warehouse membership club.
Membership fee: If you also factor in the initial joining costs, it may not be such a great deal after all to justify that fixed investment; you may need to buy more than you really need.
In summary, warehouse membership clubs offer great savings but only if you need to purchase in large quantities and resell them to other customers. Large, extended families may benefit as well, but it is best to do the math before you pay up the membership fee. Grocery shops, business owners, or other people who are buying to resell should also work in all related costs before they decide to sign up. Once you have, you may want to shop around for the best deal available. Many warehouse membership stores offer a free trial period, which can be a great way to decide if it's of any real benefit.
