A wholesale club, also known as a warehouse club, is a retail store that sells a wide variety of merchandise in large, wholesale quantities. These clubs are attractive to both bargain hunters and small business owners because they offer products at low prices due to the no-frills format of the stores. The warehouses of wholesale clubs are substantially larger in size than traditional cash-and-carry wholesale businesses, and they allow some or all types of consumers to obtain memberships. Wholesale clubs are distinguished from traditional cash-and-carry wholesale businesses in that they offer a limited merchandise assortment with little service at low prices and sell only to club member ultimate consumers and member trade people.
Wholesale clubs offer shoppers the opportunity to buy items in bulk, based on the premise that buying in bulk saves money. They can provide a variety of services, including pet insurance, home and auto insurance, life insurance, home-improvement services, travel services, and vision. Wholesale clubs can also generate additional revenue through annual membership fees. The history of wholesale clubs dates back to the 1970s when Price Club was founded in San Diego. Today, there are several wholesale clubs in the market, including Costco, Sams Club, BJs Wholesale Club, and Pace Membership Warehouse.
Whether a wholesale club is worth it or not depends on an individuals lifestyle and spending habits. For example, if food is a significant expense, buying staple items like flour, sugar, or oil in bulk can save money. However, wholesale clubs can also prey on impulsiveness by stocking lots of seasonal or limited quantity items, causing the average consumer to think that they have to purchase it now or it will be gone.
