Purchasing in bulk appears to be great. You get everything you desire and need and supposedly pay a lot less for them. Plus, you dont need to shop so often. This is great for those who hate shopping and love discounts. Yet, bulk buying has risks, as well. Therefore, it is time to learn about budgeting basics.
Many people believe that bulk buying is a great alternative to save money. While this seems a good way to avoid breaking the piggy bank, buying in bulk often costs individuals a lot more than they imagine. It is not about purchasing more of a specific product to enjoy the bulk deal, but by purchasing and substituting a low-cost product. Purchasing in bulk is often known as something you do not require a lot of at a cost you cannot miss. This practice has become popular and quite widespread.
Excesses: Paying More Money
Believe it or not, people end up paying more for items they don’t even need. For instance, if your shampoo is discounted, you will find out that purchasing a huge bottle (180 oz.) will end up helping you get more shampoo at a lower cost. But, you will end up having plenty of shampoo sitting in your shower. According to experts, individuals use more than usual and go back to buy another monster bottle. What if you get tired of using that shampoo? In this case, individuals simply switch to another brand. This common problem applies to many products.
While the price per unit appears to be low, it ends up being higher. Whenever individuals are shopping around the store and find a 1 year supply of cookies for a few pennies each package, they tend to forget to determine whether they want or need so many crackers. Common signs such as “unbelievable savings” and “super deal” just help to manipulate consumers and cloud their overall thinking. People end up purchasing unnecessary items and put their groceries on their credit card. While you will pay down your card, you will not really save.
About storage and bulk purchases
When it comes to using space, bulk purchasing enthusiasts forget to consider the price of storage. Purchasing in bulk requires space. You need to place your groceries somewhere, right? Your refrigerator may not be big enough. Believe it or not, this may force you to buy additional dry storage bins, freezers and other types of storage devices. This leads to excessive storing cost that involves a huge electricity bill for a freezer and a larger fridge.
Overweight problems: Breaking the Scale
Buying in bulk can bring health-related problems together with financial ones. Unluckily, over consumption is common within Americans. Wholesale prices appear to be majestic but simply encourage this. If you buy a huge ketchup jar staring you down each time you want to get a food item from the fridge, you will most likely find excuses to use it up. This equals more ketchup in your salads, sandwiches, the dogs food, the children lunches and so on. It is a way to justify such purchase of ketchup but, you would you have actually consumed so much if you had a tiny package?
Key dangers – Overspending your budget
Costco, Sam’s Club and other huge stores know that individuals will purchase items just because they are cheap. Whenever you walk into each store, it is easy to note a huge section of products for $1. This includes pens, novelty socks, stickers and candles, stickers. When people have a buying mindset, these items seem like fantastic deals. In the long run, you will be dragging home unnecessary things that become clutter.
What do you think about making a wrong investment in a great product that you love or need? If you are on a money diet, you might want to look at special deals. But, there is no need to purchase things you do not want or need, just because they seem to be cheap. At times, consumers end up buying the wrong item and they don’t even get the least expensive product. A bulk buy can even blow your own budget. This obviously costs a lot more up front and may cause you to fall onto money deficit during that month. Individuals think that enough supply equals savings, but it doesn’t always work out like that.
All in all, bulk buying implies that you have more of a specific product around your home. Beware and avoid overeating. If you see a huge box of cereal, you may end up having a second bowl, even if you are not really hungry. As far as prices are concerned, this is kind of sneaky. Individuals tend to fall for it more than one time. Most often, store managers know that people think that buying in bulk is cheaper. For this reason, make sure to check the real unit cost before the final purchase. In addition, look onto specifics. Many wholesale stores have membership fees. Unless you shop often, this doesn’t make sense.
Law of diminishing return
Over time, consuming same thing again and again takes the value away someway. One example I can give about our Raisin Bran cereal which SMB and I liked a lot. We got a big pack of the cereal from Costco and had to eat for days to finish the pack. For last few days we just ate it somehow. We started hating the taste so much that we had to mix other flavors in it. So while buying non-perishable food item do consider this aspect as well.
The items that we purchase in bulk without worry about the above factors
Being a two-member family we rarely go to Costco or Sam’s club. But, when we do, we buy things that SMB and I can finish in reasonable amount of time. We are rice eaters so our ‘Basmati rice’ comes in big bags. We buy chocolates as both SMB and I have sweet teeth and chocolates in bulk is a good save. Washing soaps is another bulk item we use up in time. SMB is fond of fish, mostly Salmon and Tilapia we buy in bulk and keep it frozen till we consume it fully.
We often buy personal care products and vitamins and Resveratrol. in bulk as well as we consume those daily and finish them off within a reasonable time frame. Cooking oil and nuts also we do purchase in bulk.
Readers, what other advice you may have for buying items in bulk. What is your strategy, willing to learn more from you.