Friday March 19, 2010 9:56 PM ET
SmartMoney
Published June 16, 2006  |  A A A
Deal of the Day by Kelli B. Grant (Author Archive)

The Cheapest Way to Buy Booze

Updated on August 29, 2008.

NO SUPER BOWL PARTY would be complete without some choice of beverages.

Stocking up on enough alcohol for a party can cost a small fortune. Your best bet — visit your local warehouse clubs, which regularly offer discounts of 10% to 30%. But what about those hefty membership fees, you ask? (An annual membership at Costco costs $50, while nonmembers at BJ's will have a 15% fee added to their bill.)

Thanks to some little-known state laws, nonmembers can purchase alcohol without paying a membership fee. These laws date back to the 1930s, when Prohibition was repealed. Massachusetts' law, for example, provides that applicants for a license to sell alcohol must "serve the public need and protect the common good." In simpler terms, alcohol sold must be available for purchase by the greater public — no membership restrictions. (The ol' minimum age requirement still applies.) "We uphold those old laws; therefore, any alcohol sold in our clubs in such states is open to the public," says Teleia Farrell, a spokeswoman for BJ's Wholesale Clubs.

Taking advantage of this deal depends on where you live, and at which discount club you shop. Here's a rundown of the policies at the three major players:

StorePolicyAlcohol Availability
BJ's Wholesale ClubMembership is not required for purchases of alcohol in the following states: Arizona, California, Connecticut, Delaware, Hawaii, Indiana, Massachusetts, Michigan, Minnesota, New York, Texas and Vermont.Selection varies by store. (Some carry liquor, beer and wine, while others have only beer and wine. Some carry no alcohol at all.)
Costco WholesaleMembership is not required for purchases of alcohol in the following states: Arizona, California, Connecticut, Delaware, Hawaii, Indiana, Massachusetts, Michigan, Minnesota, New York, Texas and VermontSelection varies by store. (Some carry liquor, beer and wine, while others have only beer and wine. Yet others carry no alcohol at all.)
Sam's ClubMembership is not required for purchases of alcohol.Selection varies by store. (Some carry liquor, beer and wine, while others have only beer and wine. Some carry no alcohol at all.)

Now, these policies are far from common knowledge. (Trust us — in our search for details, we called everyone from the Distilled Spirits Council to the American Bar Association and the Alcohol and Tobacco Tax and Trade Bureau. No one had heard of them.) Avoiding the fee may take some fancy footwork:

Find a manager. Don't expect to find an employee who has heard of this policy. So ask to speak with the manager as soon as you enter the store.

Bring this article with you. It can't hurt, and may convince a skeptical employee that you're in the right.

Stick to alcohol. This membership fee loophole only applies to alcohol. So don't push your luck by loading your cart up with other items. If you do, expect to pony up that nonmember fee.


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User Comments
Posted by: jenn1111
I am taking full advantage of this - I just called my local Costco in DE and the woman who answered the phone confirmed that you do not need a membership to buy alcohol. It's even tax free! This is very helpful for buying large amount of alcohol for a beach house in the Outer Banks for 20 people. Thanks for the great info!!
SmartMoney: kelligrant
Data regarding warehouse club policies came from the warehouse clubs themselves. Their interpretation of Vermont (and other states') laws and regulations is that they must allow access. Such laws are often esoteric, so the clubs tend to err on the side of the consumer - hence the Sam's Club stance that alcohol can be purchased without a membership in any location.

Kelli B. Grant
Senior Consumer Reporter
SmartMoney.com
Posted by: vermontmom
I was all psyched and emailed the DLC at the State of Vermont to get the actual law so that the store couldn't argue the point. Turns out Vermont has no such law. Why they're on the list is beyond me!

<<Thank you for your question. According to our Chief of Education, Licensing and Enforcement, Bill Goggins, there is no such law in Vermont. Liquor laws are very different from state to state; so, it very well could be that there are laws against requiring a membership to purchase alcohol in other states, but it appears that Vermont is not one of them.



Thank you,

Marcia

Marketing/Customer Service Supervisor

Vermont Department of Liquor Control>>
Posted by: Tin_Whiskers


I stopped shopping at Costco after they scanned my drivers license under the 'guise' of renewing my membership.

I first joined Costco when they opened a new store in my area and were offering a free one year membership.

I asked for an application and noticed they asked for many personal details other than what I thought should have been required for something as innocuous as a store DISCOUNT card.

WHY do they need your SS#, drivers license, phone, work phone, etc? They AREN'T issuing me credit OR doing my taxes.

I filled in none of these except my name and address. When I went to renew my membership, the clerk asked for my drivers license. I stupidly handed it to her and she SCANNED it into their data base. I hadn't provided this the first time and this REALLY PISSED ME OFF.

Screw Costco for their draconian methods of obtaining information on their customers WITHOUT asking. I haven't renewed my membership and if I do, it will...(Read more of this comment)
Posted by: alano
I much prefer to shop at my local neighborhood store. The owners know us, what we like, they will order anything we ask for and most importantly, they know about customer service, something you will not find in Costco or Sam's Club. Try asking a Costco employee to make a wine reccomendation...you may end up with vinegar for a salad!! :)
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