Does Costco undercut the prices of big box stores on kitchen appliances?

You may already be familiar with Costco's great prices on groceries when you buy in bulk. You can also buy household products at Costco at good prices and in good Quality. But should you focus on Costco for your kitchen appliance purchases rather than big box stores like Best Buy, Home Depot or Lowe's? We took a sample of online prices for kitchen appliances from these major retailers and found that prices at Costco are typically lower than the same appliances at the big box stores. Our research found that you can save an average of $50 to $250 per appliance. However, there's no guarantee you'll save on every appliance, so it's worth shopping around.

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Additionally, Costco offers some benefits that other stores may not offer for every appliance. Costco always offers free delivery and installation, as well as free pickup of the old appliance. Costco also gives you a free two-year extended warranty with every purchase. The other stores offer some of these benefits, but usually not all of them.

However, if you want to buy an appliance at Costco, you must be a member. Costco memberships are available for $60 or $120 per year. If you want to compare prices, you must enter your membership number before you can see the price of most appliances that have a “Members Only” label on the Costco website.

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If you're ready to buy the right refrigerator for your kitchen, Costco offers numerous popular brands including LG, Samsung, Whirlpool, GE and more. For our refrigerator comparison, we randomly selected the LG 22.5 cubic foot refrigerator with an InstaView display window. It has French doors and a double icemaker with craft ice.

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At Costco, you'll pay $3,050 for this model, which is available in black or stainless steel. When comparing prices on the Costco website, we found during our research that the website gave different prices when we changed the location of the base store linked to our membership. If you're looking to buy the appliance online for delivery, you might want to try this trick. For this appliance, we saw a $200 price reduction by changing the base store.

The other major department stores that carried the LG refrigerator had prices of $3,300 at Home Depot, $3,200 at Lowe's and $3,300 at Best Buy. The price at Costco is about 5% lower than Lowe's. However, if you purchase the more expensive membership for $120, your savings over the price at Lowe's is only about $30, or 1%. (If you plan to use the membership for more than just buying a refrigerator, though, you'll get a better value.) And don't forget the hidden costs. Home Depot, Best Buy and Lowe's don't offer free pickup for your old refrigerator.

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When comparing prices for a dishwasher, which can be more difficult to install than a refrigerator, you'll want to make sure, if possible, that you get free delivery and installation with your purchase. When you shop at Costco or any of the major retailers, you can choose from a number of brand names to help you find the right dishwasher for your kitchen. Costco carries a wide range of brand names for dishwashers, including Whirlpool, LG, Samsung, Bosch, KitchenAid and more.

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For this comparison, we chose the Whirlpool Top Control Dishwasher with Third Rack. At Costco, the item costs $700 for members only. It is available in a stainless steel finish. Delivery and installation are included in the price. As mentioned, you must have an annual Costco membership, which costs either $60 or $120, to see the price of this item and purchase it.

The comparison prices were $888 at Home Depot, $799 at Lowe's and $800 at Best Buy. Costco won this price comparison again because its price was 14% lower than Lowe's. However, if you purchase the $120 membership at Costco, your price will be slightly higher than the prices at Lowe's and Best Buy. If you shop at Home Depot or Lowe's, you get free delivery and installation on appliances that cost more than $396. Best Buy does not offer free installation, although delivery is free.

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