Imagine if your entire neighborhood (or town or city) clubbed together to jointly negotiate discounts on groceries. In a way, that's what warehouse stores like Sam's Club and Costco do -- you pay them a membership fee, and they use that combined buying power to give you super low prices.
If you're looking to reduce grocery costs and keep more money in your checking account, warehouse membership fees can often pay for themselves. But sadly, those fees won't stay the same forever. Case in point: Costco has just increased its annual fees. Sam's Club likely won't follow suit anytime soon. But it has recently reduced some of its membership benefits.
Sam's Club won't increase membership fees anytime soon
If you're worried that Sam's Club will also up its membership fees, fear not. The warehouse giant does not make a habit of increasing fees very often. Indeed, it has only upped the Plus membership fee once in nearly 25 years.
In October 2022, Sam's Club increased its basic membership fee from $45 to $50 and increased the Plus fee from $100 to $110. Before that, Sam's Club last raised regular membership fees in 2013 and 2006.
That's a seven- and nine-year gap between fee increases. As such, Sam's Club fans can be relatively confident the warehouse giant will not increase fees again for another five years or more.
Current Sam's Club membership costs
The basic Sam's Club membership costs $50 a year. This lets you shop in the warehouse and also gives access to savings on gas, bonus offers, and more.
Sam's Club Plus membership costs $110 a year. This gives you 2% cash back on qualifying purchases (up to $500 a year), free delivery on certain orders, extra Plus-only shopping hours, savings on prescriptions and optical services, and more.
While Sam's Club has no plans to increase fees, it has recently downgraded some membership perks. For example, as of mid-August, Plus members need to spend at least $50 in order to qualify for free delivery. Members who don't meet the threshold will have to pay an $8 delivery fee.
How to know if your Sam's Club membership is worth it
Membership fees are a crucial part of business for warehouse stores like Sam's Club and Costco. Sam's Club made $3.1 billion from membership fees in 2024, per Statista. As a consumer, it's important to know that you're getting value from your membership.
Here are some questions to consider.
Are you getting good deals on your household's staples?
It isn't practical to do a price comparison every time you go to the store. But it is worth doing the occasional price check, especially on the products you buy regularly.
The annual fee on a regular membership translates to just over $4 a month. Check to see if you're saving that much on low-cost toilet paper, ground beef, rotisserie chicken, or other produce.
If you live alone or have a small household, think about whether you'll be able to get enough value from any bulk purchases to warrant paying that annual fee. It's also worth thinking about how close your local Sam's Club is. If you have to drive a long way each time, the savings may not be worth it.
Do you buy Sam's Club gas?
According to Groupon, Sam's Club gas costs 10% to 20% less than other stations. Depending on how much you drive, the gas savings alone may cover the $50 membership fee.
Do you spend over $250 a month at Sam's Club?
If you spend $3,000 a year ($250 a month) at Sam's Club, the cash back you'd earn would cover the extra $60 of a Plus membership. Indeed, if you spend over $5,500 a year (about $460 a month) at Sam's Club, you'd cover the whole $110 membership fee.
Not only does Plus membership give 2% cash back on your purchases, but you can also stack the benefits. You can bank your Plus cash back on top of any credit card rewards and bonuses from cash back apps.
Will you use Sam's Club pharmacy and optical services?
Sam's Club Plus members get extra discounts on various prescription drugs. That includes 30-day supplies of over 600 generic drugs for $10 or less and 10 generic prescriptions for free. Ordinary members can buy generic medications for as little as $4. Similarly, Plus members can get extra discounts when buying glasses.
Act now to save on your Sam's Club membership
Costco may be increasing its fees, but Sam's Club is actually going in the opposite direction. Right now it has a promotional deal for new members. If you sign up before Oct. 31, 2024, you can halve the cost of the basic membership in the first year. That means you'll pay $25 instead of $50.
Past experience tells us that it is unlikely Sam's Club will raise its membership fees until at least 2029. But we don't know whether it will offer such a good introductory discount again. If you want to see whether a Sam's Club membership will save your household money on groceries, now may be a good time to give it a try.
