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Personal Food Deflation Watch: Milk $2.09/gallon at Costco

February 15, 2011

I signed up for Costco yesterday.  I am now paying $2.09 for a gallon of milk.

I had been paying $2.79 a gallon for milk at the CVS down the block – which is a pharmacy, not even a true grocery store.

The fee to sign up for Costco was $50.  I figure that Costco will pay for itself with reduced costs on Milk, Eggs, and Butter in about 12 weeks. We buy 2 gallons of Milk per week, and have been paying $2.79, so we’re savings $1.40 per week on milk alone.  Butter is much cheaper, we’ll save $3 a week.  Eggs?  We’ll save at least $1 a week.

This is only for Milk, Eggs, and Butter.  If I throw reduced costs for meat, Costco pays for the signup costs in 5 to 6 weeks. Meat is simply much cheaper at Costco and is a major food budget expense for my family.  Paper goods are also a major expense, which are much cheaper at Costco as well.  If I throw in paper goods, Costco will pay for itself in 2 to 3 weeks.

Costco is a very, very good deal, and makes my family expenses far less expensive.  I am looking at a personal deflation of at least 10% this year in my recurring food and sundries expenses.  We will easily spend $1,400 less this year by shopping at Costco.

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  1. Winslow R.
    February 17, 2011 at 10:30 am

    “We will easily spend $1,400 less this year by shopping at Costco.”

    Not really. Impulse buying of other really cool things Costco sells eats up any savings.

    • TC
      February 24, 2011 at 3:19 pm

      Winslow – I was just there and I picked up some extra socks. I think you’re correct!

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