Showing posts with label free samples. Show all posts
Showing posts with label free samples. Show all posts

Thursday, June 30, 2011

Eat free samples at Costco. Save money.

The dudes behind Costco are smart.  Their business model is this:

You eat free samples
You get hungrier
You buy more food

As smart as those dudes are, I have a little trick that we can use to outsmart them.  My business model works like this:

You eat free samples
You get hungrier
You eat more free samples

For those that didn't see what I just did there, let me explain.  Costco wants you to eat free samples to get you to buy more food.  I want you to eat free samples to get a free lunch.  Now, if you're smart enough that you didn't need that explanation, you're probably thinking, "but it costs $50 annually for a basic Costco membership and $100 annually for an executive membership.  This isn't free at all!"

First of all, everyone knows that the $100 annual executive membership has a $50 reimbursement guarantee.  You see, with the executive membership, you're mailed a check for 2% of your total annual spending.  If that check is for less than the $50 difference between the executive and regular level membership cost, you can bring it back to Costco and they'll give you that difference.
This man eats for $0.04 per meal.  His shopping list says, "samples".

Second of all, if you eat Free-Sample-Costco-Lunch (FSCL, prounounced "fiscal") every day, you're only spending $50/365 = about $0.14 per meal.  Extend this to dinner and it's $0.07 per meal.  Include breakfast and it's about $0.04 - $0.05 per meal.

If that's not convincing enough, let me give you something to compare this to.  Bologna, my favorite deli meat(?) runs about $5.00/lb.  A loaf of bread is about $3.00  For simple math, lets say a pound of bologna and a loaf of bread last 1 week.  This means your lunch costs $8.00 per week, or a staggering $416 per year.

Annual cost of bologna sandwich:     $416
Annual cost of FSCL:                       $50
Annual cost savings:                        $366

Follow my plan and you'll save $366 per year.  Keep this up for 10 years and you can afford a 1 month mortgage payment on a 3 bedroom split level in New Jersey.  Yay, finance!