All prices will be revealed from next Wednesday when the store opens at 8am. Video / Carson Bluck
Opinion by Diana Clement
Diana Clement is a freelance journalist who has written a column for the Herald since 2004. Before that, she was personal finance editor for the Sunday Business (now The Business) newspaper in London.
Ready, set, spend. Costco is about to launch in Auckland and simply uttering the word "Costco" seems to drive a good chunk of Auckland's population into a frenzy.
By all accounts, you can save money at the cash and carry supermarket. But equally, overseas experience shows that a lot ofpeople end up spending more when faced with what appear like unbeatable bargains.
Costco's first NZ store is nearly fully stocked ahead of this week's opening. Photo / Supplied
Like most New Zealanders, I have yet to shop at Costco. I've experienced the same effect at Ikea, however, where I would end up with a trolley full of stuff, rarely spent less than £100, and went home with nothing that was actually essential to show for it.
At Pak'nSave I sometimes catch myself throwing luxuries into my trolley because I've fallen for the "it's cheap" mentality. Conversely, I shop online at The Warehouse or Kmart to avoid the extras, and spend less even with the $5 delivery charge factored in.
Yes, you can save money at Costco. A frugal friend who shopped regularly for more than a decade at Costco in Mexico and the United States and is looking forward to it coming to Auckland, says to keep an open mind. If you shop with your head screwed on and make sure you always use what you buy, you will save money, she says.
The tyre centre at Costco's first NZ store. Photo / Supplied
The catch is that New Zealanders have form for throwing out a good chunk of the food we buy and some people will buy up large, and throw it away when it expires. On average, New Zealand households throw away 86kg of food each year, according to Love Food Hate Waste, which trawled through bins to work this out. If you don't want to be one of them then you need to hit Costco with your head screwed on.
Google the words: "How do I avoid overspending at Costco?" and you'll find endless forums postings and articles on the subject. Some of the tips I've gleaned are:
• Meal plan around the food you have in the fridge, freezer and pantry. • Write a list before you go. Check it against what's in your cupboards and fridge. • Add up what you've thrown away since last time you went there to avoid buying food you won't eat. • Only buy what's on your list. Costco makes its money on selling you the clothing, books, electrical goods or other items you didn't plan to buy when you went there. • Have a $10 or one item limit on how much you can spend on unplanned "bargains". • Set rules around what you will and won't buy there. Maybe only basic groceries, toilet paper, detergents and petrol, for example. • Don't use a trolley if you've only gone there for a few items. • Keep an eye on the quantity of perishables you buy. It can be tempting to buy up large when the price looks cheap. • Limit the number of trips you take to Costco and make sure you get in and out fast. • Bring cash only and once it's gone, it's gone. • Always price check. Use Grocer.nz or other supermarkets' websites. Some products are loss leaders and therefore a bargain. Others may be the same price as your regular supermarket. • Shop with a friend who can share those "two packs" that are common. Carpooling saves petrol getting there. • Avoid the seasonal aisle, which may dazzle you with things for the garden in spring, or Christmas paraphernalia in December, for example. • Use any rebates you build up to buy essentials, not luxuries. It's all part of the overall equation.
Remember, Costco, like the other supermarkets, is going to wage a psychological war against shoppers. A UK documentary, Costco: Is It Really Worth It, pointed out that customers are psyched into believing that it's a really exclusive club and forget to check the prices. Some things aren't even good value, the documentary-makers found. Costco also uses a chaotic layout to distract shoppers who might be looking for milk, eggs or toilet paper.
You'll go on a voyage of discovery every time. Costco's business model needs you to walk out with stuff you didn't plan to buy.
