Should you pay money to save money?

HOUSTON – Subscription offers and retail discounts are becoming increasingly attractive. But should you pay money to save money? And how do you calculate your savings potential?

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 US. Amazon says this could save customers $70 a year. Members must activate the benefit along with a free Earnify account with bp at amazon.com/fuel savings.

And this week, Kroger introduced a free year of Disney+ streaming with its $99 annual subscription to its Kroger Boost program.

Coresight Research found that nearly 57% of consumers surveyed are members of at least one loyalty program. And it turns out that more than half of them spent an average of 40% more money at that retailer.

Amazon Prime. Target Circle 360. Walmart +. These are just a few of the popular retail subscriptions.

Should you buy one?

“You have to be realistic with yourself and look at your habits versus your desired habits,” said George Mannes of AARP.

AARP compared some membership costs with some of their potential savings.

Amazon Prime costs $139 per year. AARP reports that you’ll get fast, free shipping, Prime Day deals, Whole Foods Market discounts, free music, videos, books and games. Amazon Prime members can now also add a OneMedical membership for $9 per month, and Medicare Prime members can get Prime’s RxPass.

“For the price of $5 a month, you can get as many of the 60 common medications that are out there,” Mannes explained.

The new Target Circle 360 ​​plan costs $99 per year. AARP says it can pay for itself within months if you receive weekly grocery or product deliveries. It also offers unlimited free same-day delivery via Shipt and 30 additional days for returns.

And Walmart+ costs $98 per year. If you order groceries for delivery, it pays for itself in just a few orders over $35, according to AARP. Additionally, it includes a Paramount+ Essential plan and $0.10 off per gallon of gas at select gas stations.

AARP says a big plus of Walmart+ is the free virtual vet appointments through Pawp.

“One of the new benefits of Walmart+ is free 24/7 telemedicine for your pet, where you can communicate with Princess or Fido and speak with a veterinarian,” Mannes said.

To decide whether you want to pay for a retail membership, he recommends checking your financial statements to see how much you’re already spending at that retailer.

“How much do you spend at this particular store?” If it’s in the thousands, these things could be a good deal,” Mannes said.

Some memberships offer a one-month free trial. Remember to cancel before the end of the month if you want to keep the contract to avoid being charged the next month’s fee.

According to Mannes, multi-person households tend to save more money with memberships than single-person households because they simply buy more things and use more ways to save.

Conclusion: Compare the annual or monthly membership cost to the expected annual or monthly expenses at the retailer. How much would the deal save you over this period? Is it more than membership? Then it’s a good deal. If not, consider other options or free loyalty programs that can also help you save.