Should I buy a computer from Costco?

We have partnerships with the big computer manufacturers like Dell and HP etc. If you’re running a business and need a reliable workstation, you might be tempted to try and save a buck and grab a computer from Costco. The price looks good, it comes with a generous return window, and there’s even a warranty included. But before you toss that PC into your cart next to the delicious rotisserie chicken, 5-foot teddy bear and 48-pack of paper towels, let’s talk about how that compares to purchasing from the large manufacturers.

Note: Some of the computer models and warranty service information may have changed since this article was first written.

Not all support is the same

Costco offers their Concierge Service, which sounds great in theory. But in practice, it’s basic-level tech support. You’re not getting commercial-grade service or experienced technicians who understand business infrastructure. If something goes wrong, you’ll probably be asked to ship the computer off for diagnostics and repairs, leaving you down a workstation for who knows how long.

Let’s use Dell as an example for comparison. The Dell ProSupport warranty we include when procuring a system for clients, on the other hand, gives 24/7 access to trained technicians who can actually help. If a hardware issue comes up, we can often have someone onsite the next business day with parts in hand.

Most Costco systems ship with Windows 11 Home version

Most systems sold at Costco are deployed with Windows 11 Home, and not the Windows 11 Professional version. That’s a dealbreaker for most businesses. Windows Home doesn’t support joining a domain, can’t be enrolled in Microsoft Intune or Group Policy, and lacks key features like BitLocker encryption, Remote Desktop hosting, and Hyper-V.

If you’re trying to deploy or manage devices across your company, Windows Home will fight you every step of the way as it’s not designed for business use. You’ll either spend time upgrading each system manually, or deal with the limitations that come with a non-business OS.

The cost to upgrade the Home version to Professional is $100. This additional expense needs to be taken into account when comparing prices.

Warranty terms aren’t business friendly

Costco’s extended warranty might cover hardware failure, but it doesn’t offer the kind of turnaround times or flexibility a business needs. There’s no SLA, no guaranteed timeline, and no option to swap parts in the field. If a system goes down, you’re likely looking at a full replacement process which involves shipping the system back and waiting for a return product.

Dell’s warranty options have varying levels of support. The Basic Dell warranty is exactly what you pay for, slow troubleshooting steps with an offshore support technician, however, the ProSupport warranty includes next-business-day onsite service, and their USA based techs can quickly diagnose and resolve issues without removing the machine from your office. That minimizes downtime, no consumer warranty service comes close to matching the ProSupport piece of mind.

We manage support requests for systems covered by a business grade warranty. However, when a system is purchased through Costco, the business owner or another staff member will need to handle warranty claims to verify your purchase and account information. Something that we are unable to do.

Which leaves the real question: how much is your time worth?

Consumer-grade hardware isn’t built the same

Costco typically stocks consumer models like Dell Inspiron, HP Pavilion, or similar. These are fine for home use, but they aren’t typically built for office environments. They often have plastic chassis, consumer SSDs, and limited upgrade or repair options. You’re also more likely to get bloatware pre-installed.

Business-class machines such as the Dell OptiPlex or Latitude models are designed to run cooler, last longer, and be easier to service. They’re also more standardized, which matters when you’re deploying multiple machines across a team.

Summary comparison

The table lists what we typically find when comparing the options. Some of these items may change from when this article was originally written.

FeatureCostcoDell with ProSupport
Warranty TypeConsumer, basic coverageBusiness-grade, NBD Onsite
Tech SupportEntry-level, outsourcedExperienced, direct access
Hardware TypeConsumer-gradeBusiness-grade
Downtime RiskHigher (ship-in)Lower (onsite fix)
Fleet ManagementNot suitableDesigned for it
Configuration OptionsLimitedFully customizable
Return PolicyFlexible (consumer focus)Rigid (but with better RMA)

Conclusion

Costco is great for snacks, furniture, TVs, iPads, and even a laptop here and there. But for your business computers? We recommend sticking with a vendor that understands business needs. When a device breaks, and it eventually will, you’ll be glad you have a direct support line to someone who knows what they’re doing and can fix the problem fast.

Feel free to reach out and we can discuss what kind of systems and support your business needs.

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