4 things never to buy at Costco

(Credit: Flickr photo / greenwenvy08)

You head to Costco to stock up on staples -- say, paper towels and cleaning supplies -- but you walk out with three salmon filets, a tub of cream puffs, and a ream of printer paper. Why?

Most of us are notoriously poor at assessing a true bargain, says C.W. Park, professor of marketing at the Marshall School of Business at the University of Southern California, and editor of The Journal of Consumer Psychology. Seduced by the prospect of saving money, we give in to impulse buys. Eventually, we regret the purchase or throw much of a past-its-prime product away. It's called the Costco Effect, and it's actually part of the store's incredibly successful retail strategy. But the effect on your wallet is that you spent more than you would have if you'd never seen that "bargain."

5 things to buy at Costco
6 Clever Tricks for Holiday Shoppers
Not So Fast: 7 Things to Buy After Christmas

Here are four product categories where you're better off going somewhere other than Costco.

Designer Clothes

You might score the occasional pair of Lucky jeans or a Speedo swimsuit, but designer duds aren't exactly Job 1 at Costco. Even if you do see an item from a top-tier name brand, you can't assume it's the same quality as the similar-looking product at a department store. "Just because it's a national brand name, an item of clothing doesn't have to meet the standards you'll see in other stores," says Marshal Cohen, chief retail analyst at the NPD Group, a market research firm.

Kathryn Finney, founder of The Budget Fashionista, says it's no secret that most name designers make cheaper lines just for warehouse clubs or outlet stores. The tip-off, says Finney, will be in the packaging and/or label on the garment. Labels on the sub-brands are just glued on, and are usually stiff and crunchy, while labels on high-end goods are softer or silky, and stitched all around.

Imported Shrimp

Most shrimp sold in the U.S. is imported from countries in Latin America and Southeast Asia, where environmental regulations are often lax or not enforced, according to the Environmental Defense Fund, (EDF), an education and advocacy non-profit. The EDF classifies shrimp imported from these regions as "eco-worst" for the environmentally destructive ways in which they are often farmed. Greenpeace took aim at Costco's seafood sustainability practices last June with an aggressive campaign called Oh No Costco. While Costco seafood buyer Bill Mardon says his company has entered into a partnership with the World Wildlife Fund to set global standards for shrimp farming, the specific objectives are still being discussed.

"Costco gets credit for starting down the road," says Tim Fitzgerald, senior policy analyst for oceans at of the EDF, "but they are still very early on." In the meantime, you're better off buying shrimp at Trader Joe's, which is much further along on the same path. After Greenpeace launched its Traitor Joe campaign in early 2009, Trader Joe's pledged to remove all non-sustainable seafood from its stores by the end of 2012, and it's already taken concrete steps in that direction.

More on MoneyWatch:

• What you should never buy at Walmart
• 5 things to buy at Walmart
• 4 things never to buy at Target
• 4 things to buy at Target

Sheets and Towels

"Target and Wal-Mart have this market cornered and they do a great job," says Budget Fashionista's Finney. Costco, by contrast, rarely stocks more than a handful of top-selling colors in sheets and towels. "If you want 20 colors, this isn't the place," admits Jim Klauer, Costco merchandise manager for bedding and the home.

12-Pound Crates of Navel Oranges

Sure, it only costs $11.99, but it's not such a good deal if you end up throwing away half the fruit. Same goes for the package of six hearts of romaine lettuce, and the 3-pack of whipped heavy cream (240 servings) unless you're, say, hosting a sleepover for your child's entire soccer team. And their opponents. Teri Gault, founder of TheGroceryGame.com, which helps shoppers save on food, says that when it comes to produce, it's often more cost-effective to shop at your local supermarket and combine coupons with seasonal specials. Also avoid Costco's candy aisle -- do you really need a 5-pound bucket of licorice twists?

This article is part of a package on shopping at Costco. Read the other article on 5 things to buy at Costco.

[pwgrant]

I bought a monster sized pail of laundry detergent. I was curious, so I wrote on the lid the day I first used it and I followed the direction exactly; and i mean to a "Tee." The spouse thought I was nuts. That 40lb, $18+ thing (appox. it's been so long, I don't remember) lasted 15 months!! That said after, 3+ years, we tried for a couple of months, a local fresh market and road side stands for perishables, cut our grocery bill by 60%

[leon_foonman]

Walmart?
Never buy anything from a company that treats it's employees like galley slaves, destroys local businesses and seeks to put every single retailer out of business.

Costco, on the other hand, is a great employer, and carries quality products, not cheap Chinese sweat shop junk.

[pwgrant]

ever looked at those "made in ..." tags at Costco? apparently not.

[usl69]

Have you been to every Walmart store in the U S? What do you know about the working conditions of this store or any other retail organization that you have not been spoon fed by an agenda driven media that cannot get over the fact that this company does not belong or is not controlled by the Northeast elite, will not allow bow down to the unions, does an excellent job of negotiating prices with its vendors, and provides products to people who do not fit your ideal of a proper thinking consumer? Walmart serves a purpose, just because you cannot accept this fact does not make them evil.

Start your own company if you do not like them, surely you are smarter than some hick from Bentonville Arkansas.

[ladywithtruck]

I'm soon to be a "former" Costco member as they do not value young adults - my son has turned 16 and is not allowed in the store by himself (he's not considered a household member), not allowed to buy gas at their pumps, and for this I need to pay $100 a year? Sorry, but after being a member for many, many years....this is truly disappointing that they do not value their up and coming new members. Many 16-year-olds are responsible working, driving, and buying (especially tech items) these days.

[liberty619]

that is stupid.

[workerdroid]

The tire shop at our Costco hosed us big time. They failed to report wear on the tire due to alignment, and when the tire wore out prematurely, we asked why they didn't mention the wear.
They tried to shift blame, but I stopped them cold and told them (as we were walking out to go to Les Schwaab) that they have lost our business permanently.
Went to Schwaab and got excellent service. I'm more than upset with Costco for this.

[rationalthoughts]

Costco is set up to be low cost, low margin. Their mission statement to share holders(that means employees too)"IS to provide the lowest prices on the best quality goods." Their tire technichans are only a few in companies that are certified by Michelin and the TIA.(The TIA is The Tire Industry Association).
All of this means as that they are some of most qualified Tire Techs you will ever meet. They are trained for fast service at the hightest level in tire sales,tire knowledge and Honest answers. They dont make commission and are told to sell the righttire for not only the right car but also the right one to fit your daily driving needs. They are not lisenced machanics and perform no reccomendations on services nor do the make recommeds of where to take your vehicle for mechanical repair. That type of endorsement for another business notly makes them liable to businesses not associated with other company but can also jeopardize your or other safety if they do not have a personal stake for that business or for who can be at fault. They are only performing the tasks at which thay are highly trained in.I have had to deal twith this issue,they can reccomend allign/suspension is checked by tire wear if mis-allign at time of install or at your scheduled rotation interviels if it is present. Also if you have not rotated tire at recommend interviels it voids your warranty by the manafacturer. So if your alignment is out and you have not rotated tires in 10k or 20k miles,they would not know untill at this point you are already at 2/32 tread wear and it is o late for any maintence to correct.I would make sure all of this was research and your part was in order. Also Costco does not get reimbursement from manafactures when issues are mechanical neggligance, they pay it from Costco's earnings.

[bumfight3r]

You drive your vehicle regularly and you didn't notice it, and you're blaming someone else for it? Some people just can't accept that it's their own responsibility to watch for things like this.

[komodo55]

The organic romaine lettuce is a good deal. I feed it to my tortoises.

[TheDominic]

What a puff piece of reporting.

[Suedeangel]

So, In a 2 person household, a 6 pack of Romaine Lettuce has never gone bad here. (Other than the time I accidentally froze it by turning the fridge down too low).

Moral of the story, don't buy it if your not going to eat it.

[Seahawk55]

How does sustainable seafood square with the seven things Prevention magazine says you should never put in your mouth?? Topping the list is farm raised seafood! Plan to die from all the side effects of antibiotics and excess feces in the water!
Better to visit your local wild seafood house and live to a ripe old age than to eat Costco's mass produced protein!!

[lenrapp]

Thank you for featuring my very popular article: Secret Price Codes Will Save You Money At Costco in your article.

I have written three additional articles on Costco Price Codes the newest one is
http://lenrapoport.hubpages.com/hub/Secret-Price-Codes-At-Costco-For-Xmas-Savings-2012

This article has current photos and 97¢ ending mark downs with comparable prices for the same items on other websites. The savings can be more then 70% in some cases.

Why not check it out and if you feel it has merit, please feel free to mention it and link to it as well.

I am president of the International Press Association and publisher of IMPress Magazine and appreciate your support.

Sincerely,

Len Rapoport

[analyst1]

I was under the impression that COSTCO catered to the needs of small business and non-business-customers. But the article says: "do you really need a 5-pound bucket of licorice twists?"

[signseeker1717]

My impression was that in this example they were warning against impulse buys, which would apply to anyone.

[Commenter093012]

You are all correct. The article is against impulse buy, which as the article mentions Costco has done very well in the layout of store and presentation of products to make you buy the attractive stuff on impulse. On bulk buying, although you save in buying bulk, do you really need all those stuff and if you don't, you'll end up throwing them in the garbage which negates your "savings".