Value Proposition for BJs Wholesale Club


BJ’s Wholesale Club is a member’s only warehouse store, just like Costco or Sam’s club. This company started in 1984. They operate mainly in the east coast of the United States and Ohio. Fortunately, I have one store in my neighborhood. That gave me the opportunity to familiarize myself with Bj’s. I have an idea about the “4 Ps”, (Price, place, promotion, and product). In this paper, I intend to construct a value proposition for the warehouse club. Just to be precise, I will work with the information based on the fact I reside in Boston suburbs and the BJ’s wholesale club we have here. And of course, we receive some promotional materials often times.

Keywords: value proposition, BJ’s Whole Sale club



Value Proposition for BJs Wholesale Club

BJ’s Wholesale is membership-only warehouse club. To get the 1-year membership you need to pay $45 and you can add someone from your household along with your membership. In the store, you will get TV and other electronics, furniture and any other grocery item you can think of. They offer travel services too along with auto parts. And my favorite is if you have BJ’s membership, you get a discount from Auto insurance.

I signed up because I got a promotional offer with my credit card. Sign up with the credit card brand, you pay only $25 for the yearly membership and a $20 store gift card. So essentially I signed up for only $5. And their promotional material did not stop there. They have in store rack of coupons. Even if you do not carry the coupon book they send you every month, you can still grab some coupons in store, and yes, they send you a coupon book every month. You can combine these coupons with any other coupon you get for the brand you want to purchase. So you can imagine they flood the customers with promotional materials. Now that I am not a member anymore, I still receive a promotional join back offer, I can go back to their store with $25 yearly membership fee that comes along with the coupon book. And trust me it tempts me to re-join.

Now that we have talked about the “promotion” let us talk about the “price” which is very important too. BJ’s claim that on average customers save 25% on their purchases. I will be conservative and say it might not be 25% but it is more than 5% and if you can use those coupons wisely you save even more. So, I will say, BJ’s offer great price than its competitors those are mostly the supermarkets and   Walmart.  BJ’s has a gas station too and it offers gasoline for a discount price to the members. So, the membership gets you discount grocery and gasoline for your vehicle.

Now that we got the idea of “Price” and “Promotion”, let us discuss the “place”. Like I mentioned before BJ’s operate mainly on the east coast of the United States and Ohio. But I will be specific to the store I have in my neighborhood. This store is situated near an exit from the busiest highway in the state of Massachusetts. And I am aware of another BJ’s store that is placed the same way, near an exit of the busiest highway. How it benefits the store is interesting. We live near Boston, and when people return from work they can quickly take the exit, do their shopping and take the route back to the home in suburbs. I think the stores are very strategically placed to capture suburban customers.

BJ’s is a warehouse club and you get pretty much everything here, but the catch is it is a wholesale store. So there is no small box. Everything comes in wholesale size, so if you have a bigger family you will be happy about the big boxes and small prices. If you are single and live by yourself, maybe BJ’s does not have the right size for you. But the cheaper price, plenty of coupons make it worthwhile to find good deals on what you need and can use. I would recommend visiting their website to check out their complete product catalog. My favorite section was definitely the organic produce section in the store. And apparently it is really popular, to quote Chris Baldwin, the CEO of BJ’s “We sell groceries at 25 percent less than grocery stores on average in our markets and we validate that every week”.


Value Proposition -Now let us work on the value proposition. As Ken Krogue mentions “Price and quality are obvious, but in the age of mobile and the Internet, the speed of service may be the new secret sauce.” With so many great promotions BJ’s is already doing great on price. And with much organic produce in the produce aisle and great selections and brands in another product category, I am sure BJ’s scores good in product segment. During my research and from my experience I know BJ’s checkout lines take a lot of time. So that is one area “Speed” they need to work on. But, our value proposition can focus on what works best for now and can exclude the areas which need improvement and let the respective departments take care of those. Before I present my proposition, I wanted to mention BJ’s own tagline “Live Generously”. BJ’s run those radio ads locally, those mainly tells that “your dollar goes a long way in BJ’s”. They do not really talk about quality or convenient locations they have. Here is the value proposition –

For suburban families, BJ’s Whole Sale Club, is more than just another member’s only wholesale club, because BJ’s has the better selection of organic produce, great selection of groceries than supermarkets for less than 25% of the price and the cheapest gasoline for members and BJ’s credit card holders.











Krogue, K. (2015, March). What Is Value? The Costco Value Proposition

. Retrieved from

Troy, M. (2017, May). In Focus: BJ’s Wholesale Club

. Retrieved from


Author: pachubabu

I love trying different cuisine, hiking, travelling and blogging about personal finance ,investing & health/fitness

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