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Warehouse clubs: Where to find the savings
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Warehouse clubs can offer shoppers significant savings on all sorts of items. But don't make the mistake of shopping without a plan. - photo by Jeff Wuorio
If consumers treated trips to the dentist the way they approach outings to warehouse clubs such as Costco and Sams Club, theyd all go home with a mouthful of fresh fillings every six months.

Face it, walking through a huge store can be a hassle. The parking lot is usually packed, the store is full of people pushing huge carts that are difficult to maneuver and checkout lines are sometimes endless, said Lindsay Sakraida, director of content marketing at DealNews. It's not an easy trip, so once there, many customers find it smart to make the best of it and buy as much as they need in order to avoid making another trip anytime soon.

Pricing ploys, store layout, product placement and getting the most out of that annual membership fee are other strategies stores employ to get shoppers to fill a cart brimming with goods in quantities so big they may never be consumed by the expiration dates.

There are savings to be had in a trip to the warehouse store, but experts say shoppers need to be focused and strategic to ensure they consistently capitalize on the deals warehouse stores offer.

Lots of selling

Sales figures underscore the image of shoppers flocking to warehouse stores in search of big volume bargains. Since opening its first location in San Diego in 1976, Costco has 468 stores in the United States and Puerto Rico and an additional 33 stores in Mexico, as of last year. Moreover, according to the website Statista, each store averaged roughly $164 million in sales annually, for an overall net revenue of more than $112 billion in 2014.

A major source of that revenue, unlike conventional grocery stores, is the membership fee. For instance, Sams Club charges $45 a year, while a Costco annual membership is either $55 or $110.

Costco makes most of its money from annual membership fees, which help it maintain its low prices. Those low prices in turn make customers feel like they're getting a good deal upon just walking in the door, said Sakraida.

Thats not always the case. While buying in bulk appears to save money versus in smaller quantities, experts say warehouses often offset that savings with creative pricing. For instance, low prices on milk can be countered by higher prices on related items such as Nesquick.

The challenge is that often these bulk or mass retailers price in such a way hi-lo, it's often called that means while you will save in some categories, you will pay higher prices than competitors in other categories such that the overall 'basket price' is in fact stable for the retailer, said marketing consultant Brynn Winegard.

Some psychological tricks are also at play:

  • Cart size. Shoppers may feel the cart should be full to make it worth the trip. Not coincidentally, said Winegard, cart size has tripled since the 1970s. Bigger baskets filled with things mean more dollars out of your pocket for things you didnt even necessarily need or want.
  • Store layout. In a nod to the casino industry, warehouse clubs are designed to keep shoppers' attention away from the exits. In addition to the bright lights, no windows, product demos and other distractions, the more expensive electronics are at the front of the store, so "the sales racks are going to look practically free, said Winegard.
  • Treasure hunting: Since stores like Sam's Club, Costco and BJ's Wholesale Club change out their merchandise often, you never know if what you see on sale today will be there tomorrow, said Sakraida. Finding new things is an ongoing treasure hunt and gives shoppers a sense of intrigue when they walk in.
Find the savings

There some sensible strategies to employ to make the most of the warehouse shopping experience.

First, decide whether a membership is worth it by asking for a trial membership a low risk way to check out what the store offers and if you have space to store bulk purchases.

While it doesn't take many purchases to reap the savings benefits, you should make sure you will actually use your membership to avoid wasting $40 or more on fees, said Regina Conway, consumer expert for Slickdeals.net.

Next, don't assume large quantities mean savings. Take the time to compare unit prices with the similar items at other shopping locations.

The sizes and quantities of bulk products are not what people are used to, so three pounds of cream cheese looks like a deal worth buying, said Sakraida. Never mind that you may never use all of that cream cheese before it goes bad.

Money coach Carrie Pink suggested comparing items at clubs with comparable goods at dollar stores. In particular, Pink cautioned against buying paper goods, party items and trash bags at warehouse stores all three of which are often priced lower at dollar outlets and regular supermarkets.

If youre a regular warehouse shopper, be sure to take advantage of available cash back programs. For instance, Costcos executive membership allows for up to $750 cash back annually on most purchases (the $110 membership fee is twice the cost of other types of membership, so make certain youll shop enough to justify the extra expense.)

Other strategies:

  • If you dont need the shopping cart, don't use it and hand carry you purchase.
  • Make a shopping list and stick to it. Additionally, set a timer say 30-minutes maximum to alert you when it's time to head for the checkout line.
  • Go through the store backwards, said Winegard, starting with modestly priced items youre actually after. Dont browse in the first part of the store," she said. "Ignore the new arrivals and beeline for what you came for savings.
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How to avoid 'sharenting' and other paparazzi parenting habits
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A recent study revealed parents often spend up to two hours staging a single photo of his or her child to post online. - photo by Amy Iverson
Before having kids, some people just dont appreciate their friends baby posts. But after having a child of their own, three fourths of new parents jump right on the parental social media bandwagon. If you have become a member of this group, there are some rules to follow for posting responsibly.

Much of a parents worry is how to teach their children to use social media responsibly. We talk with our kids about privacy, oversharing, and setting restrictions on their devices to keep them safe. But parents themselves need to look in the digital mirror once in a while. Before having children, it doesnt take as much effort to think about what to post online. Its up to us to decide what we share about our own lives. But once you become a parent, there are many questions to think about regarding what is appropriate to post about your kids on social media.

In a recent survey, kids clothing subscription company Mac and Mia surveyed 2000 new parents to find out how they are documenting their kids lives on social media, and what concerns they may have.

First of all, people without children seem to feel a bit differently about the onslaught of baby pictures online than those who are parents. 18 percent of people say before they had kids, they were annoyed by their friends baby posts. But after having children of their own, 73 percent admit they post progress pictures of their little ones every single month.

Not only are new parents letting the world know each time their baby is a month older, but they are posting about their kids every few days or so. Men and women report they post 6-7 times per month about their baby.

And while 70 percent of new parents say the benefit of using social media is how easy it is to help family and friends feel involved, there are some downsides. Here are a few tips to avoid the pitfall of becoming paparazzi parents.

Dont miss the moment

In the Mac and Mia survey, some parents admitted to spending up to two hours to get the perfect shot of their baby. That seems a little extreme. New and old parents alike should be careful about spending so much time taking pictures and videos that they dont enjoy the moment. Years ago, I decided to never live an experience through my phone. A study by Linda Henkel, a psychology professor at Fairfield University in Connecticut, found that when people took pictures of objects in an art museum, they didnt remember the objects as well as if they simply observed them.

This photo-taking impairment effect can happen to parents as well. If we are so consumed by getting the perfect photo, we can miss out on the moment all together, and our memory of it will suffer.

Dont forget about privacy

60 percent of couples say they have discussed rules and boundaries for posting their babys photos, according to the Mac and Mia survey. Even so, men are 34 percent more likely to publish baby posts on public accounts. If parents are concerned about their childrens privacy, keeping photos off of public accounts is a given.

In the Washington Post, Stacey Steinberg, a legal skills professor at the University of Florida, and Bahareh Keith, a Portland pediatrician, wrote that sharing too much information about kids online puts them at risk. They write that all that sharenting can make it easier for data thieves to target out kids for identity theft. Check that your privacy settings are where they should be and never share identifying information like full names and birth dates.

Dont be paparazzi parents

36 percent of parents say they take issue when their childs photo is posted online by someone else. Responsible social media users will always ask permission before posting a photo of another child. But parents should also think about whether their own children will take issue with their own posted photos a few years down the road.

When parents are constantly snapping pictures and throwing them on social media, it can be easy to forget to pause and make sure the post is appropriate. I always use the billboard example with my kids. I ask them to picture whatever they are posting going up on a billboard in our neighborhood. If they are okay with that, then their post is probably fine. Parents should ask themselves this same question when posting about their children. But they should also ask themselves if their child would be OK with this post on a billboard in 15 years. If it would cause embarrassment or humiliation, it might be best to keep it private.

Once children reach an appropriate age, parents should include them in the process of deciding what pictures are OK to post. Researchers at the University of Michigan surveyed 10- to 17-year-olds and found children believe their parents should ask permission more than parents think they should. The kids in the survey said sharing happy family moments, or accomplishments in sports, school and hobbies is fine. But when the post is negative (like when a child is disciplined) or embarrassing (think naked baby pictures or messy hair), kids say to keep it off social media.
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