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If you think you're saving money at Costco, you're probably wrong.

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Why it worked

The video provides a contrarian take on a widely popular brand, using relatable examples and simple math to challenge the viewer's perception of value.

Summary

The creator explains why shopping at Costco might not actually save consumers money due to the membership fee and the tendency to overbuy bulk items. He breaks down the math of the break-even point for a standard membership compared to shopping at a regular grocery store.

Structure

1Hook stating Costco might not save money
2Explanation of the psychological tricks used by Costco
3Breakdown of the membership cost vs. savings per item
4Discussion on the pitfalls of bulk buying
5Conclusion on the average spend per trip

On-screen text

If you think you're saving money at Costco, you're probably wrong. These free samples the $1.50 hot dogs and the bargain prices Are all just tricks to make you feel like you're saving more money than you actually are. Here's why. Costco membership is $65. which means you're betting that you can save more than that amount in shopping in a given year. But compared to Walmart when you're buying common groceries like eggs, milk or meat. You're only saving about $1.15 per item, meaning that you have to buy about 57 items per year to just break even. And that's if you actually finish everything that you buy. Since everything at Costco is packaged in bulk, many shoppers end up buying way more than they actually need. Like who needs 5 pounds of lemons? Or 24 chocolate chip cookies? I do. In fact, the average Costco shopper spends about $150 per trip, and for like five items, that doesn't seem like savings to me.

Original caption

Think Costco always saves you money? 🤔 Not always. Bulk stores are amazing… if you actually use what you buy. Most people forget the real math: that $65 membership only pays off if you buy enough essentials AND finish everything before it goes bad. Otherwise you’re overspending without realizing it.