Price Clubs and Warehouse Clubs
- the key to bulk-buy savings
Price Clubs are retail stores that offer everyday items at discounted prices compared to regular stores. The key to their business model is bulk procurement and sales.
Price clubs don't focus on fancy shelf displays or a luxury shopping experience. Goods are in fact just stacked up in a large warehouse-like enclosure (hence the alternative name, 'warehouse clubs'). Most items are sold in larger package sizes. Since consumers end up buying "more" of a product, the club is able to offer a volume discount, thereby bringing down the price per unit. In a sense, a price club lies midway between a retail outlet and a wholesale seller.
Some of the most well-known price clubs with nationwide reach include:
This is the largest warehouse club in the US in terms of total sales.
- Sam's Club.
This is a division of Walmart, and has the most number of stores in the country.
- BJs Wholescale Club.
This club is mainly concentrated in the north-east.
Here are some tips to keep in mind, while shopping at warehouse clubs: