Costco has built a bit of a cult following — people who swear by the $5 rotisserie chicken, plan trips around the $1.50 hot dog deal, and somehow always leave with things they never meant to buy.
With that kind of hype, a lot of “rules” about how Costco works get repeated like facts. And while some of the things you hear about the retailer sound exaggerated but turn out to be true, others get repeated so often they start to sound like facts — but they’re not.
Here are seven Costco myths that circle around and the real story behind them.
Kirkland Signature Products Are Second-Rate Quality
There’s this idea that if it’s cheaper, it must be trash. Costco shoppers would strongly disagree — and they have receipts.
Kirkland Signature is Costco’s in-house brand, and it’s everywhere, from coffee and olive oil to batteries and vodka. Because it’s cheaper than the name brands sitting next to it, people assume it’s a downgrade. That’s baloney.
In reality, a lot of Kirkland products are made by the same companies behind those name brands—like Starbucks handling some of the coffee, Duracell making the batteries, Reynolds manufacturing the foil, and even Jelly Belly producing the jelly beans.
Costco keeps prices low by cutting extra costs. There’s little spending on marketing or packaging, and it buys in bulk to get better deals. It also keeps its markup lower than most retailers and only sells Kirkland products that meet its quality standards.
Everything at Costco Is Super-Sized
Costco is known for bulk, but the idea that everything is sold in giant, feed-a-family-of-12 portions doesn’t really hold up.
Alongside the oversized packs, there are plenty of everyday items in normal, human-sized portions. The $4.99 rotisserie chicken is a good example, as are bakery items and ready-to-eat meals that are clearly meant for dinner, not survival prep. Even some pantry staples and condiments come in standard sizes; you’re not committing to a lifetime supply of mayo.
And beyond groceries, most categories — like electronics, clothing, and seasonal goods — are sold just like they would be anywhere else.
Costco’s ‘Treasure Hunt’ Layout Is Designed to Make You Spend More
Costco’s constantly shifting layout — what people call the “treasure hunt” — does make the store feel a little chaotic. And yes, it can feel like the olive oil got up and walked overnight.
But it’s not some grand trick to get you to spend more. The layout shifts mostly because the inventory does. New items come in, seasonal products cycle through, and with limited floor space, things simply get moved around to make it all fit.
There’s also a bit of intention behind keeping it from feeling too predictable. If everything stayed in the exact same spot forever, you’d be in and out in ten minutes and miss half the store.
Costco Only Makes Sense for Big Families
If you live alone, the idea of buying 48 rolls of toilet paper can feel ambitious. But Costco isn’t just for households of five with a garage and a second fridge. A lot of what’s there actually works just fine for one or two people. The rotisserie chicken, prepared meals, and plenty of pantry staples are easy to get through without turning it into a long-term commitment.
And even when it is bulk, it doesn’t automatically go to waste. Non-perishables, freezer items, and things you use frequently, like paper goods or cleaning supplies, can still save you money over time.
The bigger question is the membership. If you’re not shopping there regularly, the $60 fee might not make sense. But if you are, it tends to pay for itself pretty quickly.
You Don’t Need a Membership to Eat at Costco’s Food Court
If you thought you could just walk in for a $1.50 hot dog and call it a day, not anymore.
That used to be the case — non-members could grab food without a card. But starting in 2020, Costco changed its policy, and now the food court is for members only.
The shift comes down to how important memberships are to Costco’s business. Those annual fees help keep prices low across the store, including the famously cheap food court menu.
There are still a few areas you can access without a membership, like the pharmacy or, in some states, alcohol purchases. But the food court isn’t one of them anymore.
Trending on Cheapism
You Can Return Anything, Anytime You Want
Costco’s return policy has a bit of a legend status. You could come in with a half-eaten snack from six months ago and probably get a refund with a smile. Sounds nice, but that’s not exactly how it works.
Costco does have a very flexible return policy. For most items, there isn’t a strict time limit, and they’ll usually refund you if something doesn’t work out, even with opened food.
But there are clear limits. Electronics like TVs and laptops have a 90-day return window. Some items, like custom orders or event tickets, can’t be returned at all, and certain products depend on local laws.
Costco Samples Are a Free Meal
Many shoppers treat Costco like a roaming buffet — a lap around the store, a few strategic stops, and call it a lunch. But that’s not really the point of the samples.
The free bites are there to get you to try products you might not pick up otherwise. The portions are small, the selection rotates, and there’s no guarantee you’ll find anything filling — unless you’re okay calling three mini cups of soup and a cracker “lunch.”
More From Cheapism
- 17 Things to Buy Your First Time at Costco — Discover all the products you should add to your cart the first time at Costco, from croissants to olive oil.
- America’s Most-Loved Costco Products, Based on 1.4 Million Shoppers —These are the most-loved Costco products based on 1.4 million shopper reviews, from kitchen favorites to furniture and electronics.
- The Cheapest Grocery Stores in America — Find the cheapest grocery stores in America and save big on staples, fresh food, and pantry items without sacrificing quality.
