The Costco Effect

I've often wondered, as I think many people do, whether or not one actually saves money by shopping at a place like Costco.

From Wall Street Journal Personal Finance -

"People are often price-sensitive about an initial purchase. But after the money has been spent, there's a tendency to view the stash -- be it a pile of bagels or imported stout -- as manna from heaven."

This was a great point (and something about which to be cautious)-

"Costco, in particular, specializes in stocking unexpected gourmet food and luxury items that spur impulse buys. It isn't hard to drop $300 or $400. Even if you're getting a deal, that's a lot of money."