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Essay / Warehouse Wars - 693
People will do almost anything it takes to save money. Clipping coupons and ad matching are common ways to reduce costs. Buying in bulk and purchasing items from a warehouse store is another way to save. The two largest warehouse stores in the United States are Costco and Sam's Club. Costco and Sam's Club share the advantage of low prices; However, Costco excels in member benefits, number of locations, and overall shopping experience. Sam's Club and Costco have many similarities. They are both warehouse-style stores, offering a limited selection of products in large quantities. Both stores require membership to shop there. They both offer their own brand of products, Costco has Kirkland Signature and Sam's Club has Member's Mark. Both retailers offer additional services to their consumers, such as medical coverage plans and various insurance options. However, it's once inside each store that the differences become apparent. Costco wants to satisfy its members by offering low prices. As previously stated, warehouse stores require membership. Basic Costco membership costs fifty-five dollars a year. Members can upgrade to an upgraded membership for one hundred and ten dollars per year, which provides members with two percent cash back on most purchases. Costco guarantees its members a fourteen percent markup cap on all of its products. They are also extremely competitive when it comes to their suppliers. Their supplier selection process is rigorous, disqualifying many products each year that the company does not consider of value to its members. Sellers who sell an item elsewhere for a lower price are immediately removed from their shelves. This ensures that Costco members receive... middle of paper ...... employees only receive $12.67 an hour and the company reports that "more than half" of their employees receive health insurance. In an effort to do everything it can to keep prices low, Sam's Club has repeatedly laid off employees and eliminated positions within its stores. When it comes to saving money and buying in bulk, each family must decide which warehouse store will be chosen. the best for them. If you're looking for low prices and nothing more, then Sam's Club will meet your needs. If, however, you expect more from a store that delivers your hard-earned money, such as great customer service, multiple locations to choose from, and low prices, Costco stands head and shoulders above Sam's Club. In simple terms; they care. They care about their employees, they care about the quality of the products they sell, and most importantly, they care about you, the member..