Frugal People Love Buying in Bulk: 8 Times It Isn’t Worth It
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Buying in bulk is one of the more common strategies for saving on everyday purchases because you can get a discount for volume. Frugal people have embraced buying in bulk because they typically save on the per-unit cost of goods. However, there are times when bulk buying isn’t the best financial move. Sometimes it can cost you more money — or it just doesn’t make sense.
So when is buying in bulk not worth it financially? Let’s take a look.
When You Don’t Have the Storage Space
If you have limited storage space, purchasing more items than you can handle doesn’t make sense. You don’t want to end up with an uncomfortable living space or a home filled with clutter because you got carried away with the bulk buying.
When the Upfront Cost Is High
Often, you can save when buying in bulk because you’re getting a discount in terms of volume. However, if the upfront cost is substantial relative to your shopping budget, you may want to reconsider.
While it’s accurate that you’ll save money in the long run by buying in volume, you have to consider the effects of not having this money in your bank account. That hefty upfront cost could put a strain on your current finances. This leads to the next example…
When It Throws Off Your Monthly Budget
Even though buying in bulk will likely help you save money in the long run, the savings may not be worth it if your monthly budget is exceeded and you fall behind on bills. You don’t want to carry a credit card balance or dip into your next month’s budget because you wanted to save a few bucks on volume.
When the Membership Fees Aren’t Worth it
Most people will make bulk purchases at a place like Costco, where they pay a membership fee. This means that you should take into account how much you’re spending on fees to save money on buying in bulk.
Another factor to consider with membership fees is that your shopping volume tends to increase because you want to justify the expense, so you make additional purchases in bulk. Consumers often fail to realize that the membership fees aren’t always justified, and an increase in spending upfront won’t always lead to savings later.
When the Variety Packs Contain Items You Don’t Like
This has likely happened to everyone at some point. You purchase a variety pack of snacks or drinks, only to discover that there’s one flavor you absolutely detest.
When you make bulk purchases, you could get stuck with items you don’t care for and may end up throwing them out or forcing yourself to consume stuff you don’t enjoy. Either way, you have to think about this when buying groceries in bulk.
When the Items Could Go to Waste
Not all food items are made to last, and you can easily have food go to waste if you purchase an excess in bulk. It helps to look at the expiration date and consider your schedule when buying in bulk. You don’t want to see food in your fridge go bad because you wanted to save money on bulk buying.
When It Leads to Increased Consumption
One of the biggest issues with purchasing food in bulk is that you feel that urge to consume more since you have more. The harsh reality is that most of us don’t have enough self-discipline to resist the temptation to increase consumption. While it may seem like a good idea to purchase that box of chips or the case of pop to save money, you could find yourself going through more than you want to justify the purchase.
One simple way to measure if purchasing in bulk is worth is to track how long the item lasts when you buy in bulk. For example, do you drink more soda when purchasing a few items at a time or buying a case in bulk? It’s essential that you’re brutally realistic with yourself here so that you don’t spend money on buying in bulk only to overconsume, which can have health ramifications along with financial.
When the Per-Unit Savings Aren’t Significant
It may not be worth filling your home with stuff and loading up on items just to save a few pennies. This is why it’s critical that you run a few quick calculations to confirm that the per-unit savings are worth the trade-off of spending the money upfront.
Closing Thoughts
We can’t deny the cost benefits of purchasing in bulk, but knowing when it’s not worth it is crucial. You don’t want a home filled with clutter, nor do you want to see food get thrown out or strain added to your budget.
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