The Cost of Costco (Continued) for a Two-Year Old’s Birthday Party

I recently discussed the merits of a Costco membership here and here. In those posts, I mentioned how we do not spend enough to make it worth while to get the Executive Membership. To make the premium membership worth your while, someone would need to spend $450/month just to validate the extra cost, and that is just to break even. That is a lot of extra rolls, cans of beans, or tooth paste. Unless you run a business that purchases a lot of items in bulk, I ca not imagine anyone “needing” to spend $450/month at Costco, when there are far better options for ones grocery needs.

I previously discussed the real costs and/or savings of buying in bulk at Wholesale clubs. A recent statistic showed that wholesale clubs marked up their products only 8-15%, while other retails increased their wholesale prices 22-27%. I have convinced myself that the only real way to win at Wholesale Clubs is to use coupons. Otherwise the extra cost does not always justify the premium of club membership and buying in bulk.

This past weekend we had our sons second birthday party. A very small get together with immediate family, grandparents, and best friends. In total there was only 18 people at the ice cream social and 12 people at the party (not including our infant that does not “eat” technically speaking) back at our place. We did things a little backwards, where we had a ice cream social at a local parlor. Then afterwards we invited family back to our place to gather, open presents, and eat.

The menu was not anything spectacular; hot dogs, Angus beef hamburgers, chicken burgers and some small side dishes all purchased from Costco or brought by family. So this past Friday during lunch I ran to Costco quick to pick up some of the essentials (beer, buns, burgers, cheese, and milk). I quickly ran through the store, picking up a Beers of Mexico sampler pack, Mike’s Margarita sampler pack (for the party and our Jimmy Buffett concert later this summer), several packs of buns, cheese sampler, lemonade sampler, Welch’s White Grape Cherry juice (the best!), and Apple Juice. I was in the store probably less than 15-20 minutes.

I do not know what I was thinking, but after checking out, I had spent $130. I about almost fell over. I had no intention of spending that much, or maybe I just never thought about it ahead of time. The problem is I failed to financially plan in my head for this party.

On the way home I kept asking myself, what the heck did I just buy? I constantly have buyers remorse at Costco. $50 of what I spent was for 48 bottles of beer/margaritas. Why the heck did I need 48 bottles of alcohol for a two-year old’s birthday party? Some people may have one or two bottles, but not much more. I do not even drink beer. I guess I need to plan on inviting lots of people over this summer. In reality, we will have enough beer and margaritas to last us all summer long.

I think if I actually took a moment prior to going into Costco, I would have realized there were only 12 people coming to the party to eat. I do not know why in my head I kept thinking we need a lot of food and beverages. Of course Costco also gets me every time on impulse buys. This time it was these specialty bottles lemonades.

I could have easily gone across the street and spent about half as much at the grocery store by not buying in bulk. Between both phases of the party, we spent $250. I estimate possibly $75 of that was for home essentials (milk), leftovers we can make at a later date, or alcohol that will be served later. That is a lot of money for a small party for a two-year old, but it was well worth it as long as our son enjoyed himself. Time to go figure out where else I can save some money.