Store memberships: Should you pay money to save money?
HOUSTON - Retail subscription deals and discounts just keep getting sweeter. But should you pay money to save money? And how do you calculate your potential savings?
Amazon just announced a new fuel savings benefit for Prime members, offering $0.10 off per gallon at 7,000 BP, Amoco, and ampm gas stations across the U.S. Amazon says it could save customers $70 a year. Members must activate the benefit along with a free earnify account with bp at amazon.com/fuelsavings.
And this week, Kroger rolled out a free year of Disney+ streaming with its $99 year-long subscription to its Kroger Boost program.
Coresight Research found nearly 57% of surveyed consumers are members of at least one loyalty program. And it found more than half of them spent more money with that retailer by an average of 40%.
Amazon Prime. Target Circle 360. Walmart +. Just some of the popular retail subscriptions.
Should you buy into one?
"You have to be realistic with yourself and look at what your habits are already as opposed to what your aspirational habits are," said George Mannes of AARP.
AARP compared some membership costs to some of their potential savings.
Amazon Prime costs $139 a year. AARP reports that you get fast, free shipping, Prime Day deals, Whole Foods market discounts, free music, videos, books, and games. Amazon Prime members can also now add a OneMedical membership for $9 a month and Prime members on Medicare can get Prime's RxPass.
"For the price of $5 a month, you can get as many medications of the 60 common medications that they have," explained Mannes.
The new Target Circle 360 plan is $99 a year. AARP says it can pay off in months if you get weekly grocery or product deliveries. It also offers unlimited free same-day delivery through Shipt and 30 extra days for returns.
And Walmart + is $98 a year. If you order groceries for delivery, AARP says it pays for itself in a few orders that are over $35 dollars. Plus, it includes a Paramount+ essential plan, and $0.10 off per gallon of gas at select stations.
AARP says a big plus with Walmart+ is free virtual veterinarian appointments through Pawp.
"One of the new perks in Walmart+ is 24/7 free telehealth for your pet, where you can get on with Princess or Fido and talk to a veterinarian," said Mannes.
To decide whether to pay for a retail membership, he says check your financial statements to see how much you're already spending with that retailer.
"How much are you spending at this particular store? If it’s up in the thousands, these things might be a good deal," said Mannes.
Some memberships offer a month-long free trial. Just remember to cancel before the month ends if you're planning to keep it so that you won't be charged the next month's fee.
Mannes says multi-person households tend to save more money than single-person households with memberships because they simply buy more stuff, utilizing more savings options.
Bottom line: compare the annual or monthly membership cost to what you expect to spend yearly or monthly with the retailer. How much would the deal save you in that time period? Is it more than the membership? Then it's a good deal. If not, consider other options or free loyalty programs that can also help you save.