Sam’s Club lowers the sign-up fee, but consider these perks and savings at Costco

(NEW YORK) — Costco’s wholesale retail competitor Sam’s Club recently stepped up its customer retention efforts.

Both hypermarkets are known for offering high-quality items at low prices, giving shoppers an easy way to buy in bulk and save money.

To attract new members, Sam’s Club has now reduced its sign-up price to just $25 through the end of August. The new price is more than half the annual fee of its biggest competitor, Costco.

“By lowering the price of their membership, especially for new members, this is one way to get people excited about Sam’s Club’s offerings,” retail analyst Hitha Herzog told ABC News. Good morning America.

However, the wholesale giant also faced heavy criticism after removing an important benefit normally available to its Plus members.

Starting mid-August, free shipping will only be available on qualified purchases of $50 or more before tax.

“Over the past few years, shipping and logistics have become extremely expensive,” said Herzog, research director at H Squared Research. “Sam’s Club is trying to cut costs by not offering free shipping on orders under a certain amount, but adding other benefits for members.”

Costco’s Gold Star and Business memberships, on the other hand, cost $60 per year, while an Executive membership, which offers additional benefits such as travel rewards and roadside assistance, costs $120 per year.

Wholesale clubs also offer savings on more than just bulk purchases: from pharmacies to travel programs, other discounts can add up and help members keep annual fees more manageable.

“You get discounts on gas, medications and optical services,” Herzog said. “Overall, you may feel like you’re paying more for membership, but the perks give you additional discounts that make it worth it.”

Costco’s best savings tips

Whether you’re a new Costco member or a seasoned shopper, here are some easy ways to save money at the big box store.

Buy travel vouchers: Some airlines sell gift cards at slightly discounted prices, for example, you can get $50 off a $500 Southwest card.

Big savings are possible on everyday items: When it comes to savings at Costco, The joy at Costco Authors David and Susan Schwartz know a thing or two about the best-priced products thanks to more than five years of global research into Costco. They previously said GMA that two items are always at the top of their budget-friendly shopping list: “paper towels and toilet paper.”

Travel offers from rental cars to package tours: The Schwartzes have also encouraged their fellow members to rent cars from Costco. Costco partners with major car rental companies and offers 20% off their rates.

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