Buying food and household items in bulk remains a commonly shared money-saving strategy, particularly this month of December. Is buying in bulk really a good strategy?
To really save money when buying in bulk, there are certain things one should consider. First, you should bear in mind that it is not just the price of the item, but the price per unit that tells whether the items are cheaper. Not every combo is cheap, you will have to calculate the actual cost per unit. You will discover the real price.
Secondly, buying in bulk saves money per unit, but it may not be profitable if consuming the product does not bring the expected satisfaction. For example, you may find a certain brand of flour to be a good deal when buying it in bulk. What happens when you realise the flour is not good and the family does not enjoy the bread, in a worst-case scenario, it makes you sick. It would certainly feel like you have wasted money, and you would be right. The trick is to buy brands that you are comfortable with. Just because is cheap does not mean you have to buy it.
Signs like “extra savings” and “unbelievable deal” may cloud your thinking during this time of the year. It is such advertisements that may lead you to spend beyond what you have budgeted for. Overspending in the name of “bulk buying” could have immediate and long-term negative financial implications. You may end up with less money for other essential items that you had budgeted for. The solution is to stick to your shopping list and budget.
Have you also observed that when you have a lot of something, you are more likely to eat more of it, and not feel bad about being wasteful? Sometimes you make a good deal and buy in bulk items whose price per unit is cheaper only to find that you have finished the food before the beginning of January. Buying in bulk somewhat encourages over-consumption. This does not only have financial implications but healthy ones too. Consuming more than what your body needs will certainly affect your health. Bulk-shopping enthusiasts should therefore be smart consumers.
Stockpiling in December is considered a wise financial decision especially given that January is often perceived to be a dry month. However, it requires one to be smart about it. Stockpile non-perishable food and other toiletries as they have a longer shelf-life. Skip food items that will go bad before you have time to eat them, even if they come in jumbo packages at a reasonable price. It is only a good deal if you eat them all within a few days. These include fresh produce and other perishable food.
While buying in bulk can certainly save you money, it all depends on how smart you are as a bulk shopper. Buying more of a certain product because it appears cheap may not always be a wise financial decision. It requires one to be judicious of what they buy in bulk, bearing in mind what they will get out of the product.
Disclaimer: Otisitswe K. Tawana-Madziba is the founder of Fin-Edu, a social enterprise that empowers young people with social and financial education. Email: [email protected] or visit: www.fin-edubw.com.
