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We shopped at Costco and Sam's Club to see which is better - and there's a clear reason why you should join one over the other

Mar 7, 2018, 00:55 IST

Business Insider/Jessica Tyler

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  • Costco and Sam's Club are very similar membership-based warehouse stores that offer a huge variety of products and services from eye exams to photo printing.
  • The only significant difference between the stores is the cost of membership, with Sam's Club costing $15 less annually than Costco.
  • I went to a Costco and Sam's Club in Westchester County, New York, and found that the cost and quality were comparable enough that the deciding factor between the two stores might just be how close you live to each one.

Costco and Sam's Club are membership-based warehouse stores selling groceries, clothing, furniture, and everything in between. Both stores offer eye and ear exams, a pharmacy, one-hour photo services, and a food court at affordable prices. Even the return policies are similar, with both stores accepting most items with or without a receipt.

After visiting both stores in succession, I found there was only one major difference between them: the cost of membership. Costco charges $60 annually for a basic membership and $120 for an executive membership, while Sam's Club charges only $45 annually for a basic membership and $100 for a premium membership.

According to a grocery-store ranking from Consumer Reports, the higher membership costs at Costco might be worth it - it ranked higher than Sam's Club in cleanliness, meat and produce quality, customer service, store-brand quality, and prices of organic items.

To see for myself which store offers a better deal, I went to Costco and Sam's Club stores in Westchester County, New York. This is what I found:

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First, I went to Costco. I got there about five minutes after it opened, and I was surprised by how many people were there so early. Even though it's a members-only store, no one was at the door checking for memberships.

At the front of the store was a one-hour photo station.

There were rows of TVs ranging in price from $500 to $2,000.

There was a pretty big tech selection with a variety of products and brands.

As I walked further through the store, I was greeted by a seemingly endless selection of bulk-sized snacks.

You could buy a month's worth of just about any snack for under $10.

The same went for most things that were in the store — a four-pound box of Frosted Flakes was $7.49. At stores like Walmart and Target, a box half this size is only $2 less.

A five-pound bag of clementines was only $5.99 ...

... and you could get almost two gallons of orange juice for $10.99.

The warehouse had its own liquor store that was outside of the main store. You either have to go before or after shopping at Costco, meaning you have to wait in two lines and make two separate transactions.

Everything at the store seemed to be randomly arranged. Rugs were in the middle of the produce aisle, and on the other side of this display, there was golfing equipment. It's definitely a challenge to shop here if you've never been.

In the middle of the store, there were a ton of books and magazines stacked on tables ...

... piles of clothes all over the place ...

... and furniture displays in the middle of it all.

There was a wall of discounted gift cards for everything from restaurants to movie theaters. It even had discounted lift tickets for local ski mountains.

The front of the store was a complete mess. I think this was where returns are processed, but it wasn't labeled anywhere. Costco has a pretty liberal return policy, allowing members to return anything (including a membership) at any time for a full refund. The exception is electronics and major appliances which have a 90-day return policy with receipt.

Because of how early in the day it was, most of the registers were closed. The lines were pretty long, and everyone had completely full shopping carts.

The food court by the exit was insanely cheap, selling hot dogs and a soda for $1.50 and giant churros for $1.00. People were already eating in the food court at 10 a.m.

See our review of the Costco food court »

The last thing I saw before leaving the store was the membership desk. The standard price is an annual fee of $60, and there's an executive plan that costs double that. Even though the store was a mess, it carried just about everything and accepted returns on anything, making it a convenient place to shop.

Next, I went to Sam's club. No one checked my membership here either.

When I walked in, it looked almost identical to Costco, and the layout was essentially the same.

As with Costco, the TVs and computers were at the front of the store, and the prices were in the $500 to $2,000 range.

As was the case at Costco, walls of bulk-sized snacks for under $10 lined the store.

The same five-pound bag of clementines was only 50 cents more at Sam's Club than at Costco.

One advantage here was that beer and wine spritzers were sold in the actual store, not in a separate building, which was definitely more convenient than having to go to two separate stores and wait in two lines. However, it didn't carry hard liquor at all in the store.

Sam's Club was the more organized of the two stores, but it wasn't perfect. The aisles were more clearly labeled ...

... but the middle of the store was still a free-for all. There was clothing ...

... jewelry ...

... books and magazines ...

... and a random selection of playground sets and outdoor toys. Again, I can imagine it's a challenge to shop here if you don't already know exactly where everything is.

The front of the store looked identical to Costco, and the lines were just as long.

The food court was very similar too, matching Costco's low prices on items like the hot dog and drink combo and pizza, though fountain drinks were slightly more expensive.

Next to the exit, there was the member services desk. The returns at Sam's Club are very similar to Costco, accepting returns on any items with a 90-day limit on electronics and appliances. After shopping at both stores, I found that they offer almost identical services for members. Even though Sam's Club is less expensive to become a member, ultimately it may come down to which store is closer to you.

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