That $40 membership to a warehouse club is not always the most cost effective way to get your money’s worth.  If you fail to spend over a certain amount, it maybe cheaper to get the free daily passes some offer.

I’ve been a member of three wholesale clubs CostCo, Sams and BJs.  Each charge approximately the same annual rate for membership, and each (as far as I know) offer daily passes.  The caveat of these daily passes are you will be charged a 5% surcharge, since you are not a member.

Your break-even point  for paying the 5% surcharge verses paying for a membership can easily be determined:  $40 (annual membership) / .05 (surcharge rate) = $800 (break-even point).

So if you are not spending at least $800 per year in that club, you are better of paying the surcharge, rather than getting the membership.

Other Club Tips:

Save Money by Not Renewing Immediately
[Free Money Finance]