The Clark Howard Podcast – Episode Summary

Episode: 11.24.25 – Spotlight: Warehouse Clubs / Scam Prevention Team Work
Date: November 24, 2025
Host: Clark Howard

Episode Overview

In this Thanksgiving week episode, Clark Howard delves into his lifelong fascination with warehouse clubs like Costco, Sam’s Club, and BJ’s Wholesale, explaining their business models and why they've become dominant forces in American retail. Later, he shares practical tips for preventing family-targeted scams, especially in an era where AI-powered voice scams are on the rise. Throughout, Clark and his producer answer listener questions on topics like warehouse club memberships, home equity lines of credit, cosigning leases, building credit for teens, and even the economics of dumpster diving at Aldi.

Spotlight: Warehouse Clubs

The Rise and Value Proposition of Warehouse Clubs

[00:35–06:05]

• History and Success:

  • Clark details his decades-long obsession with warehouse clubs, beginning with the original Price Club in San Diego during the 1970s.
  • The top three (Costco, Sam's Club, BJ's Wholesale) have increased sales by 50% in the last five years.
    “Part of that's inflation, but most of it is pulling market share from others because people are getting a better deal.” – Clark [02:07]
  • Costco is on track to become the second-largest grocery seller in the U.S. and is already the world's largest wine seller.

• Business Model:

  • Warehouse clubs operate on thin markups (Costco's maximum: 14%, Kirkland Signature: 15%) versus traditional retail’s much higher rates (e.g., 100% markup on furniture).
  • High volume and low overhead (except for labor) keep prices low for consumers.

• Membership Fees & Employee Treatment:

  • Clark praises Costco’s fair employee pay and benefits, highlighting the ethical aspect of shopping there.
    “Nobody’s being exploited, working there for you and me to save money.” – Clark [05:30]

• Comparison of Clubs:

  • BJ’s Wholesale offers greater variety in each category, making it closer to a one-stop shop, but is usually less price-competitive than Costco or Sam’s.

• Personal Touch:

  • Clark affectionately names his dogs “Costco Wholesale” and “Kirkland Signature,” illustrating his dedication to the value proposition.

Warehouse Club Q&A & Consumer Frustrations

Sam’s Club Renewal Policy

[06:53–08:44]

• Listener Complaint (Wanda, Florida):
  • Frustration at Sam’s Club’s policy of backdating membership renewals to the original expiration, rather than granting a fresh 12 months.
  • Clark acknowledges the widespread practice and offers a workaround:
    “You can then start over as a member over again and get the full year's benefit...” – Clark [07:56]

Scan & Go Shopping at Sam's Club

[08:44–10:20]

• Listener Question (Steve, Michigan):
  • Uncertainty about whether Sam’s Club shopping now requires their Scan & Go app.
  • Clark confirms Sam’s is expanding checkoutless stores, eventually aiming for all shopping to go through the app:
    “Their intention is... the only way you can shop at any Sam's Club in America eventually is with the Scan and Go app...” – Clark [09:31]

Credit, Loans & Automatic Payments

Locked Home Equity Line from Missed Payment

[10:20–12:51]

• Listener Question (Malkia, Georgia):

  • Single missed credit card payment locked her home equity line, jeopardizing a major home project.
  • Clark recommends appealing in person to local managers, or switching to a credit union for a new line if denied:
    “That shows how a single late pay on your credit report can have so many ramifications beyond that one credit card…” – Clark [10:54]
  • Stresses the importance of setting up automatic minimum payments to avoid inadvertent credit damage.

• Automatic Payments Policy Problem:

  • Producer points out some big banks still don’t allow automatic credit card payments, drawing Clark's incredulity:
    “I don’t know anybody else who doesn’t let you set up an automatic payment.” – Clark [14:03]
  • Clark advises “vote with your feet” by moving one’s business elsewhere.

Scam Prevention Teamwork

Using Family Code Words Against AI Voice Scams

[16:38–20:32]

• Rising Threat:
  • AI can now duplicate loved ones’ voices for convincing “grandparent scams.”
• Clark's Practical Solution:
  • Establish a unique family code word, not obvious to outsiders, to verify any emergency call. “You say, ‘What’s the word?’... and that’s what the crook isn’t going to know.” – Clark [18:24]
  • The same code word can be used for years, offering a low-tech defense against high-tech criminal tactics.
  • If you receive a distress call, hang up and call the relative back on their known number to verify—it’s almost always a con.

More Listener Q&A

Co-signing on a Lease

[20:32–22:35]

• Listener Question (Chris, Connecticut):
  • Risks of cosigning a lease for a son.
  • Clark warns it carries the same risk as cosigning a loan:
    “You have all the responsibility, none of the benefit...” – Clark [20:54]
  • Suggests setups for payment reminders and online account checks to avoid damaging one’s own credit if payments are missed.

Establishing Credit for Teens via Authorized User Status

[22:35–24:03]

• Listener Question (Jeff, North Carolina):
  • Not all cards report authorized user credit history, even with SSN.
  • Clark’s rule of thumb: no SSN, no reporting; even with SSN it’s not 100%, so monitor credit reports to verify.

Dumpster Diving at Aldi

[24:03–26:46]

• Listener Story (John, Oklahoma):
  • Aldi in Tulsa discards rather than donates unsold food, allowing for dumpster “rescues.”
  • Clark surprised:
    “That is an unusual thing at an Aldi because Aldi’s corporate policy... is to try to get to zero waste.” – Clark [25:11]
  • Encourages safe, free food recovery and notes this differs from Aldi’s reported overall policy.

Notable Quotes & Memorable Moments

• “There’s a reason why I've named one dog Costco Wholesale and another dog Kirkland Signature.” [05:10]
• “Buy a used car or buy a Dyson... man.” [06:34]
• “That shows how a single late pay on your credit report can have so many ramifications…” [10:54]
• “You can defeat tech with a really low tech kind of thing.” [18:34]
• “Ignorance is not bliss. In this case, you need to know…” [21:16]
• “So, John, that is an unusual thing at an Aldi because ALDI is its corporate policy... to try to get to zero waste.” [25:11]

Timestamps for Key Segments

• 00:35 – Clark’s warehouse club history and obsession
• 02:07 – Explosive growth and market impact of clubs
• 05:10 – Personal touch: naming dogs after warehouse clubs
• 06:53 – Sam’s Club membership renewal complaint
• 08:44 – Sam’s Club Scan & Go app future
• 10:20 – Credit impact: missed payment locks home equity line
• 12:51 – Automatic payment policy fail at a “monster” bank
• 16:38 – AI voice scam threat and code word solution
• 20:32 – Co-signing leases: dangers and precautions
• 22:35 – Establishing teen credit as an authorized user
• 24:03 – Listener on Aldi dumpster diving; Aldi’s zero waste aim

Tone & Takeaways

Clark’s trademark warmth, humor, and practical sensibility shine throughout the episode. He blends deep enthusiasm for thrifty solutions with vigilant warnings about modern financial threats, all while fielding real-life questions with empathy and realism. The episode is both an informative explainer on warehouse shopping and a hands-on guide for staying financially savvy—and safe—this holiday season.

Clark’s Core Message: Save more, spend less, and don’t get scammed—especially at holiday time.