Membership clubs and warehouse stores like Costco, Sam’s Club, and BJ’s Wholesale Club are famous for their bulk discounts and low per-unit prices. But are they really worth the annual membership fee? The answer depends on your shopping habits and lifestyle.

For families or those who entertain often, the savings can be substantial. Buying in bulk often means lower prices per unit, whether it’s a giant pack of toilet paper, a case of bottled water, or a 5-pound block of cheese. These stores also offer significant savings on household staples, electronics, and even gasoline, which can quickly add up over a year.

However, if you’re a single person or someone with limited storage space, a membership might not be as valuable. The temptation to buy in bulk can lead to wasted food or unused products, negating any potential savings.

Many warehouse clubs also offer services beyond groceries, including discounted prescription medications, optical services, and even car rentals. If you take advantage of these perks, the annual fee can quickly pay for itself.

Before signing up, do a little math. Compare the membership fee to your potential savings, and be realistic about how often you’ll actually shop there. Some clubs, like Sam’s Club, occasionally offer deeply discounted or even free memberships through special promotions, so keep an eye out for those deals.

In the end, warehouse clubs can be a smart investment, but only if you use them strategically and avoid impulse buys.