Sometimes, if a deal seems too good to be true, it is. Other times, if a deal seems too good to be true, it might just be part of a store's greater discount strategy.
There are some cheap products that shoppers might want to take advantage of to save money at Sam's Club. However, upon closer examination, these discounts may actually come with a catch. As a consumer, it's beneficial for you to be aware of these so you can make the best shopping decisions for your lifestyle and budget.
Here are 15 Sam's Club products that are suspiciously cheap, and there could be a catch.
Editor's note: Prices and availability are subject to change and may vary by location.
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Rotisserie chicken
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Price: $4.98
These days, purchasing a whole chicken costs customers upwards of $7 or $8. Yet Sam's offers its seasoned rotisserie chicken for just around $5. How do they keep the cost so low?
Some customers have cracked the code that this item is offered at such a discount just to get customers in the door to start spending money around the warehouse. And, the average Sam's shopper is spending $79.15 per visit, according to research by Numerator. Sam's then raises the price on other merchandise to make up for the losses.
Prescription medications
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Price: starting at $4.00
Sam's offers generic prescription medications at a discounted price for its members, utilizing an RX savings program. As a case study, common prescription levothyroxine is available at Sam's for just $10, while levothyroxine from CVS is priced at $29.69. The tactic here is that you have to go through a program that creates loyal, repeat customers who shop as they fill their prescriptions.
Gas station prices
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Price: $0.05 to 0.25 below average
With a 5-cent discount for members and prices well below competitors, the Sam's gas station is a hit for customers. For this type of deep discount, Sam's uses membership fees to offset the cost of gas. This convenient pricing also tempts customers to visit the warehouse for a few items, ultimately making up for any revenue lost on the low gas costs.
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Organic produce
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Price: $6.22 for organic strawberries
Sam's customers can snag two pounds of organic strawberries for just $3.11 per pound, while Whole Foods sells organic strawberries for $4.43 per pound.
The catch? Sam's direct relationships with farms cut out the middleman (distributors). This, combined with their buying power from their connection with Walmart, enables lower price tags on organic produce. Offering organic produce also serves to attract higher-income shoppers who might be willing to shell out more cash.
Shopping pro tip: This month's best deals
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July is in full swing, bringing the height of summer. That also means peak season for hot deals and unbeatable savings. Now’s the time to save big on:
- Grills, coolers, and outdoor living upgrades
- Travel must-haves for road trips and beach days
- Swimwear and summer fashion
- For grocery savings, grab seasonal produce like watermelon, peaches, and tomatoes
While you're enjoying the sunshine, retailers are quietly making room for back-to-school inventory. That makes July a prime opportunity to scoop up summer favorites while the deals are still blazing.
Member's Mark vitamins
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Price: $9.98
For customers who want to stay on top of their health, purchasing Member's Mark vitamins may be a good financial move. 500 vitamin C and rosehip tablets can be purchased for just under $10, rivalling competitors' pricing for a similar product at $17.95 for less than half the number of tablets. What's the catch? This product drives member loyalty and contributes to a growing number of customers who keep faithfully purchasing the same items at Sam's.
Food court hot dog combo
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Price: $1.38
If you find yourself shopping on an empty stomach, you might pop over to Sam's food court and grab a hot dog combo. This affordable option keeps members coming back to Sam's for dining and shopping alike. Although the cost margin for this offering isn't lucrative for the Club, it's worth it for their bottom line since it brings in more money in other places.
Member's Mark laundry detergent
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Price: $15.98
Coming in at just $0.13 per load of laundry (127 loads per container), the Member's Mark detergent leads in price savings across many detergent brands.
For comparison, a 132-fluid-ounce container of Tide detergent from Walmart is priced at $19.94 for 100 loads. That indicates that each load of laundry costs $0.20. The catch is that Sam's Club manages to keep its detergent costs low because it eliminates its private label's marketing costs, allowing it to sell the product for less and still profit.
Member's Mark paper towels
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Price: $19.98
Members can spend just $1.33 a roll for Member's Mark paper towels, and club-goers love to stock up. With top ratings and locked-in value, these paper goods keep members coming back for more paper towels and other products. Similar-sized rolls of paper towels are sold for $1.99 per roll at Target.
The catch with these paper goods is that many customers start using Member's Mark Paper Towels exclusively for all their cleanup needs, building loyalty and profit at the same time.
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Member's Mark toilet paper
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Price: $24.26
Customers have done the math and found that Sam's toilet paper pricing beats out many major retailers' prices. The Club's toilet paper prices are about 24% less expensive than Costco's toilet paper. So what's the catch?
With low advertising costs and bulk pricing for their store brand, Sam's can offer customers a better deal than name-brand toilet paper companies, which give customers a more modest amount of toilet paper.
Member's Mark batteries
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Price: $17.98
For just under $18, members can purchase 48 AA batteries to meet all their energizing needs. These store-brand batteries have great reviews and a 12-year shelf life. Sam's batteries go for 37 cents each, while Target sells the brand-name Energizer 48-pack for nearly double, at 67 cents per battery.
So what's the catch? With private label advertising savings and by using fewer SKUs (Stock Keeping Units), Sam's can keep battery costs low for its members, and therefore have a product that justifies the yearly membership. Plus, members are likely to buy more than just batteries.
Tires
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Price: $283.99
Sam's often offers discounts to members who choose to buy a full set of tires. This Michelin Pilot Sport, for example, is $70 off when you purchase four tires. At Walmart, the same tires are the same price, but without the discount.
How does Sam's make money with this deal? Offering these enticing discounts to shoppers lets Sam's benefit from repeat automobile customers, and the seasonal discounts draw new customers in.
Quick tips: How to save on your grocery bill
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Grocery shopping doesn't have to break the bank when you use the right strategies. Here are three quick tips for reducing food expenses:
- Buy store brands instead of name brands whenever possible.
- Always make sure to compare unit prices, not just sticker prices.
- Join your store's loyalty program so you don’t miss out on member discounts.
Even though something like choosing coupons in your grocery store app can feel like an annoying task, the savings can really add up.
Eye exams
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Price: an average of $79
Most private opticians charge upwards of $200 for an eye exam, but Sam's keeps their costs low. What's the angle here? The warehouse makes up the difference for this deep discount in other high-ticket purchases, like glasses or impulse buys.
Member's Mark alcohol
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Price: $7.98 for this Sauvignon Blanc
Sam's Club's alcohol prices might seem too good to be true, but there's a catch. This Sauvignon Blanc is just under $8 a bottle and has over 300 five-star reviews. For reference, a similar year of Sauvignon Blanc is priced at $29.98 at Walmart.
The tactic here is Sam's strong relationships and high-volume contracts with vineyards and distilleries. This allows them to keep alcohol prices low, and in turn drives members to come back to buy more of this product, that is consider a high-frequency purchase.
Bottom line
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Most of us are looking to save money while we're shopping. But if you need another reason to shop at Sam's Club, you could check out its seasonal membership deals. However, the extremely affordable products mentioned above might be enough to win over most consumers.
While these deals may come with "catches," they are all centered around smart business strategies that Sam's Club uses to maintain its numbers. If you tap into these nuances about Sam's pricing and deals, you're more likely to maximize the value of your membership.
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