This article was written by Sierra Black, a long-time GRS reader and the author of ChildWild, a blog where she writes about frugality, sustainable living, and getting her kids to eat kale. Previously at Get Rich Slowly, Black told us about sweating the big stuff.
Buying in bulk is great, right? You get the things you want and need, and pay less for them. As an added bonus, you don’t have to shop as often (at least, this is a bonus for me, since I hate shopping).
Because I hate shopping and love discounts, I buy most everything in bulk: toilet paper, frozen foods, light bulbs, even toys. But bulk buying has its risks too, and after years of practicing it, I’m learning to see them.
For me, the three key dangers in bulk buying are:
Making a bad investment in a good product that you need or love.
I love a particular brand of gel pen, and I use them daily. They cost about $1 per pen in packs of ten, and about $0.50 per pen in packs of 100. I was at the store the other day, trying to decide how many pens to buy. The decision was made for me by the fact that I am on a cash diet at the moment and had only ten dollars in my purse. Yes, I’m paying more per pen. But the 100-pack of pens is an investment. It ties my dollars up in pens, and prevents me from earning interest on them in a savings account.
Here’s a Wall Street Journal article that makes this point about Forever Stamps (which are also a bad investment, but a fine purchase if you use a lot of stamps).
Buying something you might use but don’t need in bulk.
My kids love Puffins cereal, so when I got the chance to buy an entire case of it on sale, I did so. This was in January. We just finished the last box of Puffins. Let me tell you, there have been some scenes around the breakfast table in the past six months.
It turns out no one likes Puffins that much. Buying the cereal in bulk might have saved me a few dollars, but it made my kids unhappy about breakfast. That did not improve our quality of life, which is what frugal living is all about for me.
This bulk-buying hazard is the one I fall for most, because I do “save money” doing it. But it creates a sunk cost. I now have 12 boxes of cereal in my cupboard, and I have to eat them or throw away the money I spent. If I’d “saved money” by buying one box and banking the rest of my dollars, I’d have more money available to buy food the kids and I really want to eat, instead of stoically plowing through another box of Puffins.
Buying things you don’t need or want, simply because they are cheap.
The other day, I was biking past Harvard when I noticed a book sale going on in the Yard. I happened to have $20 in my pocket, and was strongly tempted to stop and buy $20 worth of books from their table.
Instead, I decided to take my $20 to a bookstore and buy one book from my 30-day list. I got a book I’d been waiting to buy and knew I would read and continue to use for reference, rather than going for the cheaper books I could buy in bulk. I got fewer books, but more value (and less clutter).
Costco, Target and the other big box stores know that people will buy things just because they’re cheap. When you walk into Target the first thing you see is a large section of items for $1. I used to have a habit of tossing $5 – $10 worth of stuff into my cart: novelty socks, pens, candles, stickers.
When I had a buying mindset, all of these things seemed like great deals. I was getting more stuff for less money. Now I try to avoid getting more Stuff, even when it’s cheap. I buy less in bulk — just like I buy less in boutiques — and I’m watching my savings grow because of it.
J.D.’s note: I’m stupid about buying things just because they’re cheap. Or free. I’m always dragging home free Stuff that becomes clutter. Also, Kris just reminded me that I bought a case of my favorite pens last spring. Photo by Listener42.
Sierra Black has spent most of her life broke, no matter how much or how little she earned. She started turning that around with some radical life changes like moving, shifting careers and committing to buying nothing new.
Sierra and her family live in the Boston area. Sustaining a family of five on one salary has led to some creative frugal maneuvers over the years, especially living in an expensive urban area. When Sierra isn't working magic on her family's finances, she writes about personal finance, sustainable living and parenting.
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There are 75 comments to "The pitfalls of buying in bulk".
Lesley says28 October 2009 at 05:09
Another issue that she didn’t touch on is storage. Every time you bulk buy, you have to find a place to keep it, and not only that, it has to be a place you will REMEMBER that you have it. Otherwise (particularly with a small item like pens) you will lose track of them and buy again before you have finished what you previously bought.
I have fallen into the bulk buying hazard a time or two myself. If the kids won’t eat the cereal, there is some value in donating it to a food bank. I would not consider that throwing away the money you spent. I often pick up an extra of a staple to have on hand for those times when we are asked to make an unexpected donation outside of our normal giving. Just something to ponder. Since starting to read Get Rich Slowly early this year I am learning to look at my money differently, this is just one of those ways.
Thanks J.D. for an always informative and interesting blog.
I sometimes buy in larger quantities. I did just buy 10 boxes of Nabisco crackers at 1.38 a box before the $10 rebate(and I mailed it in as soon as I bought the crackers). I will also buy 8 to 12 boxes of certain brand cereals or granola type bars(usually it is Kelloggs or Nature Valley- but many types/flavors) when they are on special at Safeway- at 4 for $6 and with coupons, it can cost me $.75 a box or even less. With my husband and an adult son, it all gets eaten.
I believe buying in bulk is a great idea for non-perishables you will definitely buy in the future (TP, paper towels, napkins, etc.) because you save money and don’t have to make as many trips to the store. But, buying in bulk can be a bad idea for perishables you wouldn’t otherwise buy (2 gallons of mayonnaise, a year’s supply of Puffins, etc.) So – as with any purchase – stop, think, and carefully evaluate whether or not you’d really be purchasing that much of the product anyway (and that it has more than enough shelf life for your normal consumption period). Then decide, and either way, relax about how you just improved your life. If you’re not sure you improved your life, then you needed to more carefully evaluate at the earlier step…
Puh-leeze. At today’s interest rates, you earn zero interest by banking the difference between buying 10 pens and 100 pens. If you are using cash and no credit cards, then that’s a different story.
Forever stamps are not that bad as an investment – when compared with earning interest on a savings account. But I’m not playing that game.
These are all great points. It makes me wonder – is there actually a net benefit to belonging to a superstore? We love going to Costco – but when you take all the arguments into account against buying in bulk, our “reason” for going there becomes the food. Which is yummy but not always inexpensive.
I chuckled about the Puffins cereal! Last year our grocery store had a case lot sale. I bought Cheerios, canned green beans, canned tomatoes, toilet paper and paper towels in bulk at half off. About two months later I gave away half the cereal and all of the green beans because I just couldn’t eat that much(Sierra, you may just want to give your Puffins away to a friend or neighbor if your kids won’t eat that much). A year later I still have some of those canned tomatoes left, but the TP and paper towels I definitely used up. I think Paul @4 hit the nail on the head about sticking to non-perishables when buying in bulk. Good article!
I too stick mainly to non-perishable items when buying in bulk. My mainstays when shopping at Costco are paper towels, toilet paper, kleenex, mouthwash, tampons, shampoo and conditioner. I do buy cereal in bulk as well, but I hide away several of the boxes and make sure to intersperse them with a smaller box of cereal bought on sale at my local grocery store. This way my husband never tires of eating the same one. I have a lot of storage which makes this possible.
We bought the excecutive Costco membership in Canada which has some kind of money-back program. As long as you spend a certain amount, they actually start paying you! Last year our memebership ended up being free and they paid us $10. We just renewed and they gave us a reusable coupon book just for excecutive members that has already saved us a few additional bucks.
I’ll echo the sentiment over storage space. The more thing you buy in bulk, the more more space you have to have to store them and the more space you have, the greater your mortgage probably is.
How great of a deal is that 100-pack of lint rollers now?
As for the forever stamps, I don’t care how much money I “lose” on them. I will always buy them because I hate the post office and shirk at the thought of going back there just to pick up a few 1 cent stamps!
These are good points. Especially the point about buying too much stuff, that doesn’t necessarily equate to frugality.
Also, some comments mentioned storage. You have to find a place to store all those items for many months, this is sometimes difficult if you lack storage space.
Great points! One thing I’d add though is that when you have a lot of something, you tend to go through it faster. I’m willing to bet Sierra will keep a closer eye on those 10 pens than she would if she had 100.
@Anthony (#8)
I use pens all the time. A lot of my writing is done longhand. I bought a case of my favorite pen last spring (Bic Cristal) and am happy to have 120 pens at my disposal. (Though I shudder to think of the packaging involved for these 120 pens.)
Don’t just blame the kids. I fell in love with Pirate Booty – a white cheddar puff snack. It is expensive at the store and so I bought a 12 bag case off amazon at a savings of $1/bag. I tore through the first 5 bags or so – mmmm….mmmmm…. good. Then I kinda got tired of it. I think I still have one or two bags in the pantry. It’ll get eaten, but I dont’ think I’ll buy that much of one thing ever again.
I also use a lot of blue Sharpies – fine point. Found some for $2 a dozen a few years back – bought 12 dozen – I’m down to two boxes now. A few weeks ago I found a 2 pack for 25 cents and bought 30 of the twin packs. Yes I shudder at the packaging, but at least the boxes that house a dozen and the backing on the twin packs can be recycled.
But since I have so many pens and at such a low cost I tend to go through them quickly cause I can “afford” to be picky. I like a nice clean stroke on the pen and once it starts to get “fat” I’ll get a new pen. I do, however, try to find a new home for the pens. I’ve given dozens away to the local library (they label boxes and other materials with them), kids and other people that will use them.
I was talking about this (with myself) the other day.
My biggest problem is that when we buy in bulk…I eat more of it (if it’s food). That translates into more time working it off – or trying to.
Not a good path. It’s actually cheaper for me to buy a scoop at Baskin Robbins once in awhile than to have a gallon of chocolate chip mint at home…believe me…
Our problem with buying bulk is we forget what we have already. This leads to us having 4 giant refills of hand soap, 9 tubes of toothpaste, etc. Some of this stuff will last till we die!
My biggest problem is the storage…if you can store it (and it won’t go off before you can use it, and you can justify the initial outlay…) go for it!
I generally stick to middle-of-the-road (i.e. don’t buy single-serving things but likewise probably wouldn’t fork out on a conference-sized pack of anything…)
Also check your unit price – bulk (weirdly!) isn’t always cheaper!
BUY IN BULK THE SMART WAY!
Overcome all JDs issues plus the storage issue, of course it will take you more time. Supermarket and Drug stores sell things at a sale price on a rotational basis, the unit price often being as low or lower than the warehouse environments. The beauty of buying here is you have more control over the variety and the quantity of what you want while still maintaining a cost advantage. The key though is coupons. You have to match them to the sale rotations as well as any other special deals going on, eg., buy 4 save $5 on your next purchase or instantly, instant rebates, etc.. Of course there isn’t a coupon for everything, but almost. I fill in the gap on the internet for the most part and deal with the few things I can’t get. I wish I could buy Arizona green tea in 30 gallon drums. I was a member of Costco for 2 years before realizing the cost trade-off versus the quantity and potential impulse buying issues didn’t work for us. Now I can control what I buy (getting many things for free) without worrying about having bought too much or too little, with another sale around the corner, plus I can always return items if necessary, which it usually isn’t. There definitely is a time commitment though as opposed to just buying and being done with it. Addendum: Addressing the perishable issue: We are lucky we don’t use a ton of perishables. I try to get around it a little by using coupons from one store at another store, most stores honor each other coupons so I will use produce coupons at whoever has the lowest price that week. There isn’t much I can do about milk though. I also only buy meat when it is at its lowest price and usually right before the sell by date, as the stores put coupons on it to move it and then I freeze it. There is nothing like getting 3 pounds of chicken for $1.00.
We tend to like to buy in bulk because of cutting down on packaging AND it being cheaper, etc. HOWEVER, one point to make is to check your prices! I don’t know why I ever assumed that bulk automatically equals cheaper, but I did. I used to buy laundry detergent in bulk at the health food store (Country Save brand). Then one day, I turned around and compared the price/lb of both the bulk and the box of detergent on the shelf…and the box on the shelf was CHEAPER!!! What the heck?! And it’s a recyclable cardboard box, so I’m not feeling too bad about the packaging issue. Not only that, but now that I’m not married to the bulk issue, I can find the same brand even cheaper at the regular grocery store.
Oh the things you find when you start keeping track of unit prices…
Buying in bulk also as the risk of losing it if it’s perishable and you don’t use it up fast enough. And even if it’s not perishable, what if you don’t need it anymore by the time you’ve used half?
Sometimes it’s better getting together with friends and splitting a bulk pack of something to help with these two issues.
And of course, there is the room issue. A friend of mine lives in 100 square feet, needless to say, she can’t buy bulk (or family packs, usually. She needs to buy units of everything for it to fit in her studio).
And even if you have room for that specific purchase, it’s less room for everything else you might need or want. Is it worth it?
And as far as food is concerned, of course, don’t buy perishables in bulk if you don’t have a freezer.
I am doubtful that buying large quantities saves trips. The things you need that you didn’t buy in bulk will still require a trip to the store. You stock up on cereal, but you still need to buy milk. Once you are in a store, adding that box of cereal to the cart is not really a problem.
One thing that catches a lot of people is when the “large economy size” is actually more expensive.
Buying in bulk is great depending on what you buy. I like it for things like cleaning supplies or kitchen things that I can use over time, not for food.
If you focus only on the big wins when buying in bulk (stuff you need, not what you want), you save time and money while eliminating unnecessary possessions.
Like with anything in life, buying in bulk definitely isn’t black or white. You simply figure out things that you use no matter what, and buy them in bulk. Examples: toilet paper, toothpaste, soap. The behind-the-scenes stuff that you use for its functionality, not for fun, taste, etc. You’ll never stop wiping your butt, so you’ll always need toilet paper.
By buying those items in bulk, you save time and money. Time, because you don’t have to go out as often to buy them (or shop online). Money, because of what you already mentioned (it’s cheaper in bulk). Plus, you’ll save mental energy too, since you’re not thinking about this stuff as often – the items are just there.
For the fun/tasty stuff, buying in bulk definitely becomes a per-case scenario. Like you said, no one likes a particular brand of food THAT much 🙂
Buying in bulk is super-beneficial as long as it’s not used as a blanket procedure for everything.
Thanks for reminding us to think twice before snatching EVERYTHING up in bulk,
Oleg
As a single person in a tiny condo, I can barely use even normal size purchases quickly. I buy everything in small sizes (ie a tiny bag of flour) and it lasts forever. Perishables are hard – I end up throwing lots away because I can’t buy them small enough. I need to change the way I do things. I could buy lettuce in non-bag form and I already buy fruit one at a time.
The other factors are cost of storage and risk of loss. Storage is hard to look at in terms of day to day expenses–you either got a place with a basement or you didn’t–but risk is always worth thinking about. What are the odds your basement will flood in the next five years? Or you’ll lose power in a hurricane and won’t be able to get a block of dry ice in the deep freeze before that 50 lbs. of pot roast meat goes bad? ‘Sworth thinking about. I generally limit myself to buying no more than one year’s worth of anything in advance, and less than that with perishables.
Then, too, my wife and I have concluded that the “case discount” on wine is a false economy for us. If we have 12 bottles of wine lying around the house, our consumption goes right up to meet the challenge.
I love Costco but we almost never go there. There are only 2 of us so not much call for huge volumes of food. I used to buy 6packs of Pacific chicken stock, until Trader Joes started carrying concentrated soup base – way lighter and less packaging, and also cheaper per cup of soup. We bought their giant bag of dog food once but it gave our old dog the runs, so we haven’t bought it for the new dogs. I would love to buy bulk toilet paper, but they don’t carry any recycled brands. I’ve bought water filters, which we don’t use much any more, and rechargeable batteries, which we only need so many of. The one thing I’ve bought there which was defintely a bulk value was white vinegar, which I use for cleaning. It comes in much larger bottles than at the grocery store, so I can re-use the smaller containers and cut way down on the packaging. Also, my husband buys copy paper for work, as they DO carry a recycled brand of that.
@Ross #20:
“I am doubtful that buying large quantities saves trips. The things you need that you didn’t buy in bulk will still require a trip to the store.”
Ok, but if I only buy TP or paper towels or toothpaste in small quantities, and then run low, off I go to the store for more (more often) because when you need TP, you need it sooner rather than later. 🙂
So, I agree that I’ll still be going to the store regularly, but being low on TP or paper towels or toothpaste won’t cause the trip (and I thereby avoid another impulse opportunity).
I’d like to offer a contrasting viewpoint on buying bulk perishables, though. I and a coworker both have 2 person families, and we both shop at Costco. She’s a vegetarian, and I eat a LOT of fruits and veggies during the week (for example, today’s lunch has a salad, two kiwi, two oranges, and a plum).
In the quantities that we eat fresh foods, Costco can be significantly less expensive here. We were both having spoilage problems (you do NOT understand how far 6 heads of romaine will go until you try to eat it all!) – then we started splitting everything.
Now, we alternate shopping weeks, trading off when we’re at work, and each of us gets a lot more variety with less spoilage and effort. I think we’re also saving money by limiting our impulse purchases, but I couldn’t prove that.
I have 6 children. I have done a lot of price comparing and have found that it is still usually cheaper to stay away from the warehouse stores and by the generic elsewhere. I am not brand loyal. If I was then it would matter. If you are a brand person the warehouse shopping would save you money, but I can always find the generics cheaper then warehouse store labels at the other big box stores Even between WalMart and Sams, Walmart usually will be cheaper and you can use coupons, which I very rarely use, at Walmart.
I very much agree that you use more of something if you have a large quantity of it. I bought my children really nice clicker pencils at the beginning of the school year. One for each child. I have boxes of regular pencils. They love their clicker pencils and take very good care of them. The other pencils are always lost, because they are so easily replaced. With a house of teenagers, If I have a case of granola bars in the pantry, or any large bulk foods, crackers, gold fish, etc…They will choose that over fresh fruit. I would rather make more trips and have fresh produce, then a pantry full of refined easy to grab food.
Shirley
I have slowly weaned myself away from buying everything in bulk…such as 25 pound sacks of sugar and flour….but I can’t wean myself away from Costco….the produce is so much better than in the local store and I don’t mind at all that my kiddos can eat 4 pounds of grapes in a week! I love Costco because it is such a pleasant shopping environment. I love Trader Joe’s for the same reason. There are very few instances where the prices are lower than my military grocery store but I don’t need a cocktail after I shop at Costco or Trader Joe’s!
J.D. – your note reminds me of my husband’s sidewalk shopping habit. Our entire house is furnished almost exclusively with trash-picked items. We have plenty of nice stuff, but he can’t resist a good find. Living in a college town provides a lot of those. At one point we had three or four “free” stereo systems cluttering up our house, when all we really needed was one.
For me its about consistency. I get some things at costco that makes the trip worth it. tortillas, bread, canned tomatoes, pickles, eggs, cheese, salsa, TP, paper towels, beer, OJ, bacon, lunchmeat, soaps/detergents, cleaning supplies. I will eventually use it all, never have waste and I’ve checked the unit price against the grocery store. The grocery might get cheaper if I’m willing to switch brands, hunt around for coupons/rebates, accept some substitute or get a weird quantity. With bulk you really have to know yourself and your family. If there is a chance of waste (lettuce heads) it gets a lot harder to justify. Also if you need more variety in your shopping and don’t mind the experimentation shopping sales only might be best for you.
I love Sam’s – but I have learned to strictly limit exactly what I will buy there.
At the grocery and drug stores, I do “investment” shopping, meaning that I buy what’s on sale and nothing else (except for fresh produce and dairy). I match the current sales with coupons, so I typically save between 50 percent and 80 percent a month on groceries, health and beauty, and cleaning supplies.
But even with those deals, there are still some great bargains to be had at Sam’s for certain items – and especially for those that I never want to run out of.
So at Sam’s, I specifically buy:
– Sam’s brand trash bags and paper towels
– diapers and wipes
– bulk shredded cheese, which I re-package into 1-pound ziploc bags and freeze
– some fresh produce, especially berries that will freeze well
– frozen chicken breasts
– some clothing, such as underwear and socks for the kids
– wine and beer
– bulk pasta
– large bags of bread flour, which is quite expensive at the grocery but very cheap at Sam’s (I have a much-used breadmaker at home)
– sugar, powdered sugar, chocolate chips, brown sugar, etc. for the holiday season
For those of you who have food that you think you won’t eat, please check with local charities and food banks to see what they will accept. Some groups have strict requirements, while others will take whatever you give.
Also, if the items are unopened, you can offer them on freecycle.
There are lots of ways to clear some space and help others at the same time!
Someone wrote about waiting to buy meat until it’s about to go off sale … eww. That’s not smart buying. If you can’t afford fresh meat, switch to beans!
I used to “bulk buy” cheap plastic beads for art and jewelry. Over time I got more and more selective. Ended up giving away most of the plastic beads and now I am more apt to buy unique handmade or rare vintage items, fewer for the money but they make more of an impact in the art and, oh yes, take up a lot less space.
I don’t buy anything in bulk. We have limited storage, and with a two-person, two-paycheck household, we don’t need to stockpile “good buys” (lucky us). We very rarely buy snack food or soda, and then only single servings (this is not stuff we need to have in the regular diet). But DH does go to Smart & Final once a month for beer and TP!
It is more worth my time to put in an extra hour at work during the week than clip coupons and hunt for the *best* deals for that hour. I keep specific coupons for things we go through routinely, but I make enough that it isn’t worth the time and energy. Especially since when there IS a good sale I typically have to get rain checks because I can’t get to the store until everyone else has already cleared the shelves.
I shop typically once per week from my list. I will scan the ads before I go to roughly plan meals (carrots or corn?, rump roast or london broil?), but I stop at Costco every week. I have done the math and I save my membership fee on bread alone (2 32oz loaves every week is $5.49 vs $3-5 per 24 oz loaf at the grocer). I also fill up on gas there (which is the cheapest in the neighborhood) because it is right on the corner on my way out of work. They have also been really good on things like our towels, wheel barrow, tires, etc.
You DO have to watch it, and it is easy to get sucked into things. But on the flip side it fits into our lifestyle quite nicely. I won’t hunt sales and coupons like a previous poster to find the Nature Valley granola bars my husband likes. So I get the 96 pack and send him on his way. In, out, done.
Back when I used to live with my boyfriend, he had a COSTCO membership and we would go every month or so. I found that we spent a LOT more money for these reasons:
-We’d buy stuff that we would not usually buy (we’d always use it), but we bought it because it was a good deal.
-We would have to go to the regular grocery store anyway. COSTCO has a lot of things, but unless you eat mostly processed foods or can go thru 15 bell peppers a week, you have to go to your regular grocery store too.
-The membership costs money, and while it’s not excessive, it’s yet another thing to pay for when we’re not actually saving much by shopping at COSTCO anyway.
-Sometimes the large quantity of food we would buy went to waste.
Now, I love COSTCO, and I haven’t been there in almost a year now, so I do miss some items (like the stuffed salmon mmmm), but I definitely have a heavier wallet. If money was no object (I’m still paying off debt), I’d definitely go back to COSTCO simply because I like it, but for me, someone who lives in a small apartment, I can’t fit much bulk stuff in there anyway, and it’s just not practical right now for me to get a membership again.
At the regular grocery store I always look for deals like 2 for 1 toilet paper, etc., which does save me money, but I think that places like COSTCO won’t save you money unless you really actively plan your purchases out.
I’m laughing at comment 17’s “Some of this stuff will last till we die!” I can picture sons and heirs falling over huge vats of mayonnaise and cartons of batteries of every shape and size in the basement.
We gave up our Costco membership a couple of years ago and haven’t missed it. There are only two of us, so the savings on toilet paper and olive oil aren’t worth the lack of other types of products, the wasted time or the stress of the awful environment (fighting for parking, crowds, noise, unruly kids). We also found the range of products varies wildly – our local Costco in New York was significantly better stocked for our habits than our current local Toronto store. Haven’t looked back!
I do like the Bulk Barn a lot for cheaper nuts, rolled oats and other unpackaged natural goods though – and probably overspend a fair bit in this area 🙂
Good article — it reminded me of all the similar reasons we didn’t rejoin Costco or join Sam’s Club when we moved. We used to call Costco “The $200 Store”, because we couldn’t get out of there for less than that, with the “must have” surprises we’d find.
Like many above, I find that we spend less money overall if I stock up on sales at my usual grocery stores and the farmer’s market. I find that the grocery store megapack 12 rolls of TP is usually enough to have on hand. 🙂
It’s funny I learned alot of these lessons in better shopping through a 1950’s public service video being riffed by Rifftrax.
Shop from a planned list not on whim, buy bulk only if it doesn’t goto waste, etc.
I find it amazing that good ideas like this are so obvious they’ve been around forever but we still lose sight of them regularly. Sometimes you need a reminder to be frugal and to shop wisely.
I buy in the other kind of bulk–unpackaged. Oatmeal, raisins, peanuts, peanut butter, rice, beans, lentils, quinoa, etc., and spices (if you need half a teaspoon, why spend $4 on a whole jar?). Saves money and packaging (I reuse quart yogurt jars for storage).
I’ve been the recipient of other people’s bulk buying mistakes at Costco. We have enough (free) toothpaste to last us a few years because neither my son nor his girlfriend’s father liked that brand after they bought it. Hopefully, toothpaste doesn’t expire. I also received a couple of bottles of a mouthwash-like product recommended by my dentist because my son ended up not liking the taste.
Living in a rural area buying in bulk can be a life saver in terms of less traveling to shop. My family gets meat in bulk because we have a large chest freezer that can hold half a cow. Staple foods like flour, pasta, rice, beans, canned tomatoes, etc. also get bought in bulk. We don’t buy anything perishable in bulk that doesn’t freeze well.
Do it with a list and get nothing not on the list is a good idea for any shopping.
I have a 4 person household (self, husband, 2 kids). I buy nearly all of my meat at Costco, take it home & repackage it into freezer bags to freeze. It is substantially cheaper, and very high quality. I also buy a lot of our produce at Costco — it is also of excellent quality.
The thing that I have noticed about doing the majority of my food buying at Costco is that we eat higher quality food. I stay away from the processed food, and can buy nearly everything at Costco except for the finishing ingredients (curry paste, salad dressing, etc) that I have to buy at the grocery store. Milk is purchased 2 gallons at a time, but is about 2/3 the cost. I have just been much more focused on avoiding food waste, & find that I can direct my kids to the food on hand and they will eat it. One of the keys to making sure that food doesn’t go to waste is to keep track of what needs to be “eaten up.” In the spirit of doing that, I have instituted what I like to call “clean out the fridge night” where everyone in the house decides which leftovers they want for dinner & we have a “buffet.” We waste much less food, & have saved a lot of money on very delicious, healthy & fresh foods by shopping in bulk. I understand that it’s not for everyone, but if it works for your family, great.
Patty - Why Not Start Now? says28 October 2009 at 12:52
Wow, Susan, a pleasant shopping experience at Costco? Mine is just the opposite. I have to steal myself to go in there. But Trader Joe’s, yes, that is a lovely place and I’ve found that since we now have one closer, I’d much rather skip the crowds and bulk buying at Costco and frequent TJs more often. So maybe the quality of the experience has something to do with it. It’s simpler for me to just get what I need when I need it, and have a stress free, happy experience to boot.
Another thing to watch for when buying in bulk: liquid hand soap.
The bulk version comes in a bottle without the narrow nozzle you need to help you refill your vanity pump without spilling it everywhere. I actually had to buy a regular size refill and then re-fill the refill bottle before I could use the bulk soap! Yup, stupid.
I’ve also noticed that the bulk shampoo/creme rinse is also sold in bottles that have HUGE nozzles. So you end up using more than you would otherwise because 1 squirt is a lot larger now.
Another thing to look out for at warehouse stores: our Sam’s club where I live sells bulk food that should be “unperishable” but ALWAYS it is sold *at* the sell-by date.
For example, canned beans, tomato paste, pasta sauce, even cold cereal. All kind of “off” in color or stale even if you eat it right away. No way would you want to eat that 1 year after buying it!
US families/living together groups are getting smaller, but bulk packaging still seems to assume huge families. We bought a box of kosher salt and it lasted almost a decade, since except for bread baking and a few other times, you don’t need as much salt (or any) as many recipes call for.
I also recently found out that the pen I like the best, and was considering a multiple, if not exactly bulk, purchase of, was actually one for which you could buy a refill and two refills cost less than one of the pens. Cleverly, the shop where I buy such items keeps the refills in a different area from the pen display… and lots of places don’t sell refills at all.
My stylist says that most people use way more “product” especially shampoo and conditioner, than they need, and I am always amazed at people who buy large sizes, even if your hair is long, you don’t need as much as you think!
The one thing we should be buying in bulk at the moment is hand sanitizer; my husband is using it hourly, I think.
I don’t get the bulk buying thing. If I need 1 can of tomato sauce, then that is what I need, not a case.
Storage is certainly an issue but I think there are more deep seated issues with bulk buyers. Bulk buying may stem from a fear of lack. Lack of money for food, lack of money for other things. Lack of work, lack of everything. My mom stored bulk food. She was worried my dad wouldn’t have work and we would starve. That never happened.
I think we also as a society spend more time planning what we will eat than what we will do with our lives.
Buying things you don’t need or want, simply because they are cheap.
I caught myself almost doing this today when I stopped at the mall to pick up some things for my outfit on Saturday. (Wedding to attend, not Halloween.) I was perusing the sales racks of a store I don’t really shop at much, and thought about getting a pair of brown leggings just because they were $3. Then I snapped to my senses and realized I would never wear them…
I still walked out of there having spent $20 on three things when I only went in for one. I got leg warmers (for the wedding, sounds weird I know) and also picked up two necklaces, either of which will match my dress well. I feel a bit guilty, though, since I’m worried I’ll change my mind about the leg warmers. (I’m not very trendy, and these to me are rather trendy.)
I don’t feel too bad, but I also spent $5 ordering photos today. Saved $12 using a coupon, though, so I guess I shouldn’t feel too bad? $25 won’t kill me, I just don’t like days where I feel like I spend a lot!
@ Gen Y Investor #3
I hear you! I am under trauma after buying a stack of toilet paper from Costco early this year. I hate the toilet paper now and can’t wait for it to get finished (maybe February 2010) so that I get back to my routine of buying a different type every two months or so. So much for bulk buying!
That aside, I am a keen bulk buyer as I always buy sugar, flour, dry beans, nuts and most food items from the bulk bins. Recently I have become a hater of packaging too. I usually only buy what I need for a week or two so I avoid looking at piles of food items stocked in the kitchen or wherever!
I rarely buy things in bulk. I agree that there are those pitfalls. However, I usually use simple rules for buying things in bulk:
-don’t buy perishable items in bulk
-buy non-perishable items that you absolutely use in bulk
Pretty simple at first sight. It only get a little bit complicated with with the item #2. Because it is difficult to know which items you really use the most sometimes.
In order to do that, you must be aware of your own habits, which would mean that you would have to track your purchases for a while to learn your own buying and usage patterns. Not an easy task, but doable.
Just like you mentioned in your first point, sometimes you tie up too much of your money at one time by buying in bulk. Simply put, buying in bulk has it’s opportunity cost.
To make sure you CAN buy in bulk, I would suggest to know all of your monthly expenses in advance and have money set aside for those expenses and it should not be touched.
Only after you take care of your basic needs, then one can think of buying in bulk.
At Target, the water filter cartridges I use are $7.99 per piece. There’s also a three pack for $29.99.
I had to make sure that it’s really the same product. It is. What’s up with that?
It could be good as long as you are disciplined and work from a list.
Our staples and savings are:
Soymilk ($4/month)
Bread ($2/month)
Cheese block (my husband LOVES cheese) ($2/month)
dog food ($10/month)
spaghetti
and we do have enough storage space. costco in particular has good quality stuff including some organics.
Just the above justifies the $45 annual fee but again we have to be careful and my husband tends to buy too much snacks, like the following stuff about to go to waste:
raisins – who needs a pint of raisins?
popcorn – who needs a gallon of popcorn?
giant chip bags – resealable but goes stale after a while
more chips –
however, without that membership we could still get deals but need to have good timing.
I don’t remember the last time a pen of mine ran out of ink. I think one pen can last a year. So the pens are not a bulk item for me.
The rest depend on what you use, and how much of it. Yes, you can buy a huge amount of something that goes bad, but that’s not Costco’s fault. Note to self: You don’t have room to store a gallon of mustard. It took you three years to use it up. No mo’ mustard.
Their guarantee/return policy on electronics is great, and that alone can pay for the membership. Many of their food items (e.g. shrimp, beef tenderloin) are 1/2 to 2/3 supermarket price. One holiday dinner (with company) and the membership is saved.
I read in an article on ezine that buying there are many people who have money but there are very few who knows how to use them. I completely go with this point. Many people are buying rubbish things as the prices are low or they have attractive offers attached with them. This is ridiculous as how one should have some understanding before investing. Better if they buy something relevant to them. Anyway thanks Sierra for the post and raising awareness among people.
@Neale #16 – I was just scrolling down to say much the same thing…
We often make the mistake of buying treats in bulk. Granted, you do save money per unit, but you get through it a lot faster than you would go through that quantity if you had to buy an individual pack each time you wanted, meaning that:
a) you end up spending more money when calculated over a unit timeperiod rather than unit quantity
b) most of these treats are not the epitome of healthy eating, so it’s a bigger dent in your health to have it on hand and therefore eat more of it.
c) the treat loses its novelty, which results in a lost pleasure (which we replace with another treat, and so the cycle continues…), and also means that it becomes taken for granted so yet again, we eat more of it.
So, bulk is only good for buying staples and non-perishables in our household
David/Yourfinances101 says29 October 2009 at 03:34
It all takes temperance and forethought.
Since I have honed in on saving money–I have yet to make any kind of “real” bulk purchase. Maybe diapers, but that’s it. Cuz I know that I will use them.
And not falling into the trap of buying crap you don’t need just cuz its cheap is not easy–but definitely doable.
Keep in mind the two questions–Do I really need it? Do I really want it?
#1 — if I buy it, will some of it go to waste? #2 — if I buy it, will some of it go to waste (considering my overeating as waste)? #3 — Do I have the proper room to keep this in storage?
If you can answer these three questions correctly, then you can buy it. Otherwise, buy the lesser amount and pay more per item — you’ll be paying less overall.
My wife and I don’t buy in bulk for the home. To me, it doesn’t make sense to have to pay an upfront $50 membership fee to a typical Costco or Sams Club, and then have to spend at least roughly $100 in cash (or debit) each time you go to that store. The ‘savings’ would just about pay for the $50 fee for us.
If I need to buy soaps, detergents, light-bulbs or home stuff, we’ll go to walmart when we feel like we can put up with the clientele to save the extra couple dollars and target when we aren’t up to it when that extra $2 savings doesn’t matter.
In terms of food, we go strictly to one foodstore to build up the points associated with that store, which usually leads to a 10% off or sometimes a 15% coupon. This leads to a big savings on top of coupons we are already using on a $300 monthly ‘big grocery shopping’.
There is a bulk big box store like Costco called Makro in Thailand. Interestingly there is more commercial traffic and the people who buy there tend to break up and repackage the bulk items to sell in smaller packs to individuals- making a little profit in the process.
Seems like a good model for the urban areas of the USA as well.
My worst problem is when I change what I like. Examples:
* I become a different size.
* I learn of a food allergy, skin allergy, etc.
* I start buying only recycled/organic/fluorescent/natural/etc.
* I switch to reusable items such as a hanky instead of tissues, cloth napkins instead of paper, rechargeable batteries, etc.
* I replace a broken coffee pot with a new one that uses different filters.
Another problem is spoilage. I’m not just talking about food not getting used before it goes bad, I’m talking about pens drying up, a power outage ruining everything in the freezer, a water leak ruining paper goods, a heat wave/power outage melting candles.
This is one of the issues where a desire for minimal clutter collides with a desire to be frugal. For me, it is a personal decision that living without a lot of “stuff” wins out over saving some money. I would feel differently if I had a big pantry, an attic, a basement or an extra freezer. But I don’t!
Totally agreed about the storage issue! Because we’re trying to make our small home more liveable, we’re allowing ourselves to spend more per item on many things, so that we’re not wasting money overall by not being able to find a place for bulk items, not being able to use them up before they expire, or outgrowing our affection for them. We used to be bulk-buying addicts, and it’s been a slow process to wean ourselves off the idea that cheaper-per-item is always better.
I find myself going through supplies faster when I have a greater quantity of them on hand. That last Mach 3 razor cartridge always seems to last twice as long as the first seven in the pack doesn’t it?
Great, thought-provoking post. I am a victim of my mother-in-law’s bulk buying obsession. I am currently trying to get through 3 tubes of nasty cheap shower gel, canned green beans and creamed corn, and about 100 pairs of white tube socks. She also has a problem with bulk knitting — we have received about 10 pairs of slippers in the past year alone. I am grateful for the intention behind these gifts and would never complain to her, but the truth is I feel oppressed by all this STUFF. I could give the food to the food bank, but then she’d notice we’re “low” on beans and get us some more!
One of my best and worst bulk buying experiences was belonging to a food-buying co-op. I got high-quality (organic, unprocessed, local) food for 30-40% cheaper than retail. Buying extra-large sizes and sharing with other members was especially cheap. In the end, the extra work was a pain. There were meetings, food sorting nights, order forms, and some messy spills (don’t buy vats of honey for sharing, just don’t).
Buying bulk is great when you do once a month cooking. Stuff gets cooked and frozen and nothing goes to waste. You find that you don’t over use something just because you have so much when you ration is out in recepies over a month.
Rachelle, how about presenting your MIL with a pattern book of something that you WOULD like?
I buy Arborio rice at a restaurant supply store. It has a zip-lock top. I put it in a jar that I bought at the grocery store. When it gets low, I refill it. I much, much prefer it to long grain.
I also buy canned chicken in bulk (6 cans, I think) and tuna fish (12 to a pack, I don’t buy Albacore). I buy a baby loaf of Tillamook Extra Sharp Cheddar from Costco. It only costs me $7.99 a loaf. Just my savings from the cheese alone pays for my membership for the year.
OTOH, my SO bought a bag of wasabi mix (a restaurant size bag!) and has never opened it.
Terri, what’s a pattern book? I’m reluctant to give my mother-in-law any suggestions. I think the notion that anything but price would determine my preference would be alien to her (“peanut butter is peanut butter”). I’m a bit of a granola-head, preferring whole, natural foods, sometimes organic. But I will talk it over with my partner and see what he thinks.
There are 75 comments to "The pitfalls of buying in bulk".
Another issue that she didn’t touch on is storage. Every time you bulk buy, you have to find a place to keep it, and not only that, it has to be a place you will REMEMBER that you have it. Otherwise (particularly with a small item like pens) you will lose track of them and buy again before you have finished what you previously bought.
I have fallen into the bulk buying hazard a time or two myself. If the kids won’t eat the cereal, there is some value in donating it to a food bank. I would not consider that throwing away the money you spent. I often pick up an extra of a staple to have on hand for those times when we are asked to make an unexpected donation outside of our normal giving. Just something to ponder. Since starting to read Get Rich Slowly early this year I am learning to look at my money differently, this is just one of those ways.
Thanks J.D. for an always informative and interesting blog.
I agree… storage is one of the biggest concerns I have with buying in bulk. I can’t stand having 30 rolls of paper towels stacked up in my house.
I sometimes buy in larger quantities. I did just buy 10 boxes of Nabisco crackers at 1.38 a box before the $10 rebate(and I mailed it in as soon as I bought the crackers). I will also buy 8 to 12 boxes of certain brand cereals or granola type bars(usually it is Kelloggs or Nature Valley- but many types/flavors) when they are on special at Safeway- at 4 for $6 and with coupons, it can cost me $.75 a box or even less. With my husband and an adult son, it all gets eaten.
I believe buying in bulk is a great idea for non-perishables you will definitely buy in the future (TP, paper towels, napkins, etc.) because you save money and don’t have to make as many trips to the store. But, buying in bulk can be a bad idea for perishables you wouldn’t otherwise buy (2 gallons of mayonnaise, a year’s supply of Puffins, etc.) So – as with any purchase – stop, think, and carefully evaluate whether or not you’d really be purchasing that much of the product anyway (and that it has more than enough shelf life for your normal consumption period). Then decide, and either way, relax about how you just improved your life. If you’re not sure you improved your life, then you needed to more carefully evaluate at the earlier step…
Puh-leeze. At today’s interest rates, you earn zero interest by banking the difference between buying 10 pens and 100 pens. If you are using cash and no credit cards, then that’s a different story.
Forever stamps are not that bad as an investment – when compared with earning interest on a savings account. But I’m not playing that game.
These are all great points. It makes me wonder – is there actually a net benefit to belonging to a superstore? We love going to Costco – but when you take all the arguments into account against buying in bulk, our “reason” for going there becomes the food. Which is yummy but not always inexpensive.
It’s a shock to hear that you would consider buying 100 pens.
I don’t remember the last time I bought a pen. Usually, work provides them or I grab one from a hotel or shows/conventions pass them out.
Also, I must not use pens that much. Because each one lasts me for months, if not for a full year. I tend to lose them before they run dry.
I chuckled about the Puffins cereal! Last year our grocery store had a case lot sale. I bought Cheerios, canned green beans, canned tomatoes, toilet paper and paper towels in bulk at half off. About two months later I gave away half the cereal and all of the green beans because I just couldn’t eat that much(Sierra, you may just want to give your Puffins away to a friend or neighbor if your kids won’t eat that much). A year later I still have some of those canned tomatoes left, but the TP and paper towels I definitely used up. I think Paul @4 hit the nail on the head about sticking to non-perishables when buying in bulk. Good article!
I too stick mainly to non-perishable items when buying in bulk. My mainstays when shopping at Costco are paper towels, toilet paper, kleenex, mouthwash, tampons, shampoo and conditioner. I do buy cereal in bulk as well, but I hide away several of the boxes and make sure to intersperse them with a smaller box of cereal bought on sale at my local grocery store. This way my husband never tires of eating the same one. I have a lot of storage which makes this possible.
We bought the excecutive Costco membership in Canada which has some kind of money-back program. As long as you spend a certain amount, they actually start paying you! Last year our memebership ended up being free and they paid us $10. We just renewed and they gave us a reusable coupon book just for excecutive members that has already saved us a few additional bucks.
I’ll echo the sentiment over storage space. The more thing you buy in bulk, the more more space you have to have to store them and the more space you have, the greater your mortgage probably is.
How great of a deal is that 100-pack of lint rollers now?
As for the forever stamps, I don’t care how much money I “lose” on them. I will always buy them because I hate the post office and shirk at the thought of going back there just to pick up a few 1 cent stamps!
These are good points. Especially the point about buying too much stuff, that doesn’t necessarily equate to frugality.
Also, some comments mentioned storage. You have to find a place to store all those items for many months, this is sometimes difficult if you lack storage space.
Great points! One thing I’d add though is that when you have a lot of something, you tend to go through it faster. I’m willing to bet Sierra will keep a closer eye on those 10 pens than she would if she had 100.
@Anthony (#8)
I use pens all the time. A lot of my writing is done longhand. I bought a case of my favorite pen last spring (Bic Cristal) and am happy to have 120 pens at my disposal. (Though I shudder to think of the packaging involved for these 120 pens.)
Don’t just blame the kids. I fell in love with Pirate Booty – a white cheddar puff snack. It is expensive at the store and so I bought a 12 bag case off amazon at a savings of $1/bag. I tore through the first 5 bags or so – mmmm….mmmmm…. good. Then I kinda got tired of it. I think I still have one or two bags in the pantry. It’ll get eaten, but I dont’ think I’ll buy that much of one thing ever again.
I also use a lot of blue Sharpies – fine point. Found some for $2 a dozen a few years back – bought 12 dozen – I’m down to two boxes now. A few weeks ago I found a 2 pack for 25 cents and bought 30 of the twin packs. Yes I shudder at the packaging, but at least the boxes that house a dozen and the backing on the twin packs can be recycled.
But since I have so many pens and at such a low cost I tend to go through them quickly cause I can “afford” to be picky. I like a nice clean stroke on the pen and once it starts to get “fat” I’ll get a new pen. I do, however, try to find a new home for the pens. I’ve given dozens away to the local library (they label boxes and other materials with them), kids and other people that will use them.
I was talking about this (with myself) the other day.
My biggest problem is that when we buy in bulk…I eat more of it (if it’s food). That translates into more time working it off – or trying to.
Not a good path. It’s actually cheaper for me to buy a scoop at Baskin Robbins once in awhile than to have a gallon of chocolate chip mint at home…believe me…
Our problem with buying bulk is we forget what we have already. This leads to us having 4 giant refills of hand soap, 9 tubes of toothpaste, etc. Some of this stuff will last till we die!
My biggest problem is the storage…if you can store it (and it won’t go off before you can use it, and you can justify the initial outlay…) go for it!
I generally stick to middle-of-the-road (i.e. don’t buy single-serving things but likewise probably wouldn’t fork out on a conference-sized pack of anything…)
Also check your unit price – bulk (weirdly!) isn’t always cheaper!
BUY IN BULK THE SMART WAY!
Overcome all JDs issues plus the storage issue, of course it will take you more time. Supermarket and Drug stores sell things at a sale price on a rotational basis, the unit price often being as low or lower than the warehouse environments. The beauty of buying here is you have more control over the variety and the quantity of what you want while still maintaining a cost advantage. The key though is coupons. You have to match them to the sale rotations as well as any other special deals going on, eg., buy 4 save $5 on your next purchase or instantly, instant rebates, etc.. Of course there isn’t a coupon for everything, but almost. I fill in the gap on the internet for the most part and deal with the few things I can’t get. I wish I could buy Arizona green tea in 30 gallon drums. I was a member of Costco for 2 years before realizing the cost trade-off versus the quantity and potential impulse buying issues didn’t work for us. Now I can control what I buy (getting many things for free) without worrying about having bought too much or too little, with another sale around the corner, plus I can always return items if necessary, which it usually isn’t. There definitely is a time commitment though as opposed to just buying and being done with it. Addendum: Addressing the perishable issue: We are lucky we don’t use a ton of perishables. I try to get around it a little by using coupons from one store at another store, most stores honor each other coupons so I will use produce coupons at whoever has the lowest price that week. There isn’t much I can do about milk though. I also only buy meat when it is at its lowest price and usually right before the sell by date, as the stores put coupons on it to move it and then I freeze it. There is nothing like getting 3 pounds of chicken for $1.00.
We tend to like to buy in bulk because of cutting down on packaging AND it being cheaper, etc. HOWEVER, one point to make is to check your prices! I don’t know why I ever assumed that bulk automatically equals cheaper, but I did. I used to buy laundry detergent in bulk at the health food store (Country Save brand). Then one day, I turned around and compared the price/lb of both the bulk and the box of detergent on the shelf…and the box on the shelf was CHEAPER!!! What the heck?! And it’s a recyclable cardboard box, so I’m not feeling too bad about the packaging issue. Not only that, but now that I’m not married to the bulk issue, I can find the same brand even cheaper at the regular grocery store.
Oh the things you find when you start keeping track of unit prices…
Buying in bulk also as the risk of losing it if it’s perishable and you don’t use it up fast enough. And even if it’s not perishable, what if you don’t need it anymore by the time you’ve used half?
Sometimes it’s better getting together with friends and splitting a bulk pack of something to help with these two issues.
And of course, there is the room issue. A friend of mine lives in 100 square feet, needless to say, she can’t buy bulk (or family packs, usually. She needs to buy units of everything for it to fit in her studio).
And even if you have room for that specific purchase, it’s less room for everything else you might need or want. Is it worth it?
And as far as food is concerned, of course, don’t buy perishables in bulk if you don’t have a freezer.
I am doubtful that buying large quantities saves trips. The things you need that you didn’t buy in bulk will still require a trip to the store. You stock up on cereal, but you still need to buy milk. Once you are in a store, adding that box of cereal to the cart is not really a problem.
One thing that catches a lot of people is when the “large economy size” is actually more expensive.
Buying in bulk is great depending on what you buy. I like it for things like cleaning supplies or kitchen things that I can use over time, not for food.
Hey Sierra,
If you focus only on the big wins when buying in bulk (stuff you need, not what you want), you save time and money while eliminating unnecessary possessions.
Like with anything in life, buying in bulk definitely isn’t black or white. You simply figure out things that you use no matter what, and buy them in bulk. Examples: toilet paper, toothpaste, soap. The behind-the-scenes stuff that you use for its functionality, not for fun, taste, etc. You’ll never stop wiping your butt, so you’ll always need toilet paper.
By buying those items in bulk, you save time and money. Time, because you don’t have to go out as often to buy them (or shop online). Money, because of what you already mentioned (it’s cheaper in bulk). Plus, you’ll save mental energy too, since you’re not thinking about this stuff as often – the items are just there.
For the fun/tasty stuff, buying in bulk definitely becomes a per-case scenario. Like you said, no one likes a particular brand of food THAT much 🙂
Buying in bulk is super-beneficial as long as it’s not used as a blanket procedure for everything.
Thanks for reminding us to think twice before snatching EVERYTHING up in bulk,
Oleg
As a single person in a tiny condo, I can barely use even normal size purchases quickly. I buy everything in small sizes (ie a tiny bag of flour) and it lasts forever. Perishables are hard – I end up throwing lots away because I can’t buy them small enough. I need to change the way I do things. I could buy lettuce in non-bag form and I already buy fruit one at a time.
The other factors are cost of storage and risk of loss. Storage is hard to look at in terms of day to day expenses–you either got a place with a basement or you didn’t–but risk is always worth thinking about. What are the odds your basement will flood in the next five years? Or you’ll lose power in a hurricane and won’t be able to get a block of dry ice in the deep freeze before that 50 lbs. of pot roast meat goes bad? ‘Sworth thinking about. I generally limit myself to buying no more than one year’s worth of anything in advance, and less than that with perishables.
Then, too, my wife and I have concluded that the “case discount” on wine is a false economy for us. If we have 12 bottles of wine lying around the house, our consumption goes right up to meet the challenge.
I love Costco but we almost never go there. There are only 2 of us so not much call for huge volumes of food. I used to buy 6packs of Pacific chicken stock, until Trader Joes started carrying concentrated soup base – way lighter and less packaging, and also cheaper per cup of soup. We bought their giant bag of dog food once but it gave our old dog the runs, so we haven’t bought it for the new dogs. I would love to buy bulk toilet paper, but they don’t carry any recycled brands. I’ve bought water filters, which we don’t use much any more, and rechargeable batteries, which we only need so many of. The one thing I’ve bought there which was defintely a bulk value was white vinegar, which I use for cleaning. It comes in much larger bottles than at the grocery store, so I can re-use the smaller containers and cut way down on the packaging. Also, my husband buys copy paper for work, as they DO carry a recycled brand of that.
@Ross #20:
“I am doubtful that buying large quantities saves trips. The things you need that you didn’t buy in bulk will still require a trip to the store.”
Ok, but if I only buy TP or paper towels or toothpaste in small quantities, and then run low, off I go to the store for more (more often) because when you need TP, you need it sooner rather than later. 🙂
So, I agree that I’ll still be going to the store regularly, but being low on TP or paper towels or toothpaste won’t cause the trip (and I thereby avoid another impulse opportunity).
This is a terrific reminder!
I’d like to offer a contrasting viewpoint on buying bulk perishables, though. I and a coworker both have 2 person families, and we both shop at Costco. She’s a vegetarian, and I eat a LOT of fruits and veggies during the week (for example, today’s lunch has a salad, two kiwi, two oranges, and a plum).
In the quantities that we eat fresh foods, Costco can be significantly less expensive here. We were both having spoilage problems (you do NOT understand how far 6 heads of romaine will go until you try to eat it all!) – then we started splitting everything.
Now, we alternate shopping weeks, trading off when we’re at work, and each of us gets a lot more variety with less spoilage and effort. I think we’re also saving money by limiting our impulse purchases, but I couldn’t prove that.
I have 6 children. I have done a lot of price comparing and have found that it is still usually cheaper to stay away from the warehouse stores and by the generic elsewhere. I am not brand loyal. If I was then it would matter. If you are a brand person the warehouse shopping would save you money, but I can always find the generics cheaper then warehouse store labels at the other big box stores Even between WalMart and Sams, Walmart usually will be cheaper and you can use coupons, which I very rarely use, at Walmart.
I very much agree that you use more of something if you have a large quantity of it. I bought my children really nice clicker pencils at the beginning of the school year. One for each child. I have boxes of regular pencils. They love their clicker pencils and take very good care of them. The other pencils are always lost, because they are so easily replaced. With a house of teenagers, If I have a case of granola bars in the pantry, or any large bulk foods, crackers, gold fish, etc…They will choose that over fresh fruit. I would rather make more trips and have fresh produce, then a pantry full of refined easy to grab food.
Shirley
I have slowly weaned myself away from buying everything in bulk…such as 25 pound sacks of sugar and flour….but I can’t wean myself away from Costco….the produce is so much better than in the local store and I don’t mind at all that my kiddos can eat 4 pounds of grapes in a week! I love Costco because it is such a pleasant shopping environment. I love Trader Joe’s for the same reason. There are very few instances where the prices are lower than my military grocery store but I don’t need a cocktail after I shop at Costco or Trader Joe’s!
J.D. – your note reminds me of my husband’s sidewalk shopping habit. Our entire house is furnished almost exclusively with trash-picked items. We have plenty of nice stuff, but he can’t resist a good find. Living in a college town provides a lot of those. At one point we had three or four “free” stereo systems cluttering up our house, when all we really needed was one.
For me its about consistency. I get some things at costco that makes the trip worth it. tortillas, bread, canned tomatoes, pickles, eggs, cheese, salsa, TP, paper towels, beer, OJ, bacon, lunchmeat, soaps/detergents, cleaning supplies. I will eventually use it all, never have waste and I’ve checked the unit price against the grocery store. The grocery might get cheaper if I’m willing to switch brands, hunt around for coupons/rebates, accept some substitute or get a weird quantity. With bulk you really have to know yourself and your family. If there is a chance of waste (lettuce heads) it gets a lot harder to justify. Also if you need more variety in your shopping and don’t mind the experimentation shopping sales only might be best for you.
I love Sam’s – but I have learned to strictly limit exactly what I will buy there.
At the grocery and drug stores, I do “investment” shopping, meaning that I buy what’s on sale and nothing else (except for fresh produce and dairy). I match the current sales with coupons, so I typically save between 50 percent and 80 percent a month on groceries, health and beauty, and cleaning supplies.
But even with those deals, there are still some great bargains to be had at Sam’s for certain items – and especially for those that I never want to run out of.
So at Sam’s, I specifically buy:
– Sam’s brand trash bags and paper towels
– diapers and wipes
– bulk shredded cheese, which I re-package into 1-pound ziploc bags and freeze
– some fresh produce, especially berries that will freeze well
– frozen chicken breasts
– some clothing, such as underwear and socks for the kids
– wine and beer
– bulk pasta
– large bags of bread flour, which is quite expensive at the grocery but very cheap at Sam’s (I have a much-used breadmaker at home)
– sugar, powdered sugar, chocolate chips, brown sugar, etc. for the holiday season
For those of you who have food that you think you won’t eat, please check with local charities and food banks to see what they will accept. Some groups have strict requirements, while others will take whatever you give.
Also, if the items are unopened, you can offer them on freecycle.
There are lots of ways to clear some space and help others at the same time!
Someone wrote about waiting to buy meat until it’s about to go off sale … eww. That’s not smart buying. If you can’t afford fresh meat, switch to beans!
I used to “bulk buy” cheap plastic beads for art and jewelry. Over time I got more and more selective. Ended up giving away most of the plastic beads and now I am more apt to buy unique handmade or rare vintage items, fewer for the money but they make more of an impact in the art and, oh yes, take up a lot less space.
I don’t buy anything in bulk. We have limited storage, and with a two-person, two-paycheck household, we don’t need to stockpile “good buys” (lucky us). We very rarely buy snack food or soda, and then only single servings (this is not stuff we need to have in the regular diet). But DH does go to Smart & Final once a month for beer and TP!
It is more worth my time to put in an extra hour at work during the week than clip coupons and hunt for the *best* deals for that hour. I keep specific coupons for things we go through routinely, but I make enough that it isn’t worth the time and energy. Especially since when there IS a good sale I typically have to get rain checks because I can’t get to the store until everyone else has already cleared the shelves.
I shop typically once per week from my list. I will scan the ads before I go to roughly plan meals (carrots or corn?, rump roast or london broil?), but I stop at Costco every week. I have done the math and I save my membership fee on bread alone (2 32oz loaves every week is $5.49 vs $3-5 per 24 oz loaf at the grocer). I also fill up on gas there (which is the cheapest in the neighborhood) because it is right on the corner on my way out of work. They have also been really good on things like our towels, wheel barrow, tires, etc.
You DO have to watch it, and it is easy to get sucked into things. But on the flip side it fits into our lifestyle quite nicely. I won’t hunt sales and coupons like a previous poster to find the Nature Valley granola bars my husband likes. So I get the 96 pack and send him on his way. In, out, done.
Back when I used to live with my boyfriend, he had a COSTCO membership and we would go every month or so. I found that we spent a LOT more money for these reasons:
-We’d buy stuff that we would not usually buy (we’d always use it), but we bought it because it was a good deal.
-We would have to go to the regular grocery store anyway. COSTCO has a lot of things, but unless you eat mostly processed foods or can go thru 15 bell peppers a week, you have to go to your regular grocery store too.
-The membership costs money, and while it’s not excessive, it’s yet another thing to pay for when we’re not actually saving much by shopping at COSTCO anyway.
-Sometimes the large quantity of food we would buy went to waste.
Now, I love COSTCO, and I haven’t been there in almost a year now, so I do miss some items (like the stuffed salmon mmmm), but I definitely have a heavier wallet. If money was no object (I’m still paying off debt), I’d definitely go back to COSTCO simply because I like it, but for me, someone who lives in a small apartment, I can’t fit much bulk stuff in there anyway, and it’s just not practical right now for me to get a membership again.
At the regular grocery store I always look for deals like 2 for 1 toilet paper, etc., which does save me money, but I think that places like COSTCO won’t save you money unless you really actively plan your purchases out.
I’m laughing at comment 17’s “Some of this stuff will last till we die!” I can picture sons and heirs falling over huge vats of mayonnaise and cartons of batteries of every shape and size in the basement.
We gave up our Costco membership a couple of years ago and haven’t missed it. There are only two of us, so the savings on toilet paper and olive oil aren’t worth the lack of other types of products, the wasted time or the stress of the awful environment (fighting for parking, crowds, noise, unruly kids). We also found the range of products varies wildly – our local Costco in New York was significantly better stocked for our habits than our current local Toronto store. Haven’t looked back!
I do like the Bulk Barn a lot for cheaper nuts, rolled oats and other unpackaged natural goods though – and probably overspend a fair bit in this area 🙂
Good article — it reminded me of all the similar reasons we didn’t rejoin Costco or join Sam’s Club when we moved. We used to call Costco “The $200 Store”, because we couldn’t get out of there for less than that, with the “must have” surprises we’d find.
Like many above, I find that we spend less money overall if I stock up on sales at my usual grocery stores and the farmer’s market. I find that the grocery store megapack 12 rolls of TP is usually enough to have on hand. 🙂
Buying in bulk is great – but you’re right that it’s not with out it’s risk.
It’s funny I learned alot of these lessons in better shopping through a 1950’s public service video being riffed by Rifftrax.
Shop from a planned list not on whim, buy bulk only if it doesn’t goto waste, etc.
I find it amazing that good ideas like this are so obvious they’ve been around forever but we still lose sight of them regularly. Sometimes you need a reminder to be frugal and to shop wisely.
http://www.rifftrax.com/shorts/buying-food
I buy in the other kind of bulk–unpackaged. Oatmeal, raisins, peanuts, peanut butter, rice, beans, lentils, quinoa, etc., and spices (if you need half a teaspoon, why spend $4 on a whole jar?). Saves money and packaging (I reuse quart yogurt jars for storage).
I’ve been the recipient of other people’s bulk buying mistakes at Costco. We have enough (free) toothpaste to last us a few years because neither my son nor his girlfriend’s father liked that brand after they bought it. Hopefully, toothpaste doesn’t expire. I also received a couple of bottles of a mouthwash-like product recommended by my dentist because my son ended up not liking the taste.
Living in a rural area buying in bulk can be a life saver in terms of less traveling to shop. My family gets meat in bulk because we have a large chest freezer that can hold half a cow. Staple foods like flour, pasta, rice, beans, canned tomatoes, etc. also get bought in bulk. We don’t buy anything perishable in bulk that doesn’t freeze well.
Do it with a list and get nothing not on the list is a good idea for any shopping.
The only things we buy in bulk are Bounty, Naked Juice, Basmati Rice and Ziplocks from Sams.
I have a 4 person household (self, husband, 2 kids). I buy nearly all of my meat at Costco, take it home & repackage it into freezer bags to freeze. It is substantially cheaper, and very high quality. I also buy a lot of our produce at Costco — it is also of excellent quality.
The thing that I have noticed about doing the majority of my food buying at Costco is that we eat higher quality food. I stay away from the processed food, and can buy nearly everything at Costco except for the finishing ingredients (curry paste, salad dressing, etc) that I have to buy at the grocery store. Milk is purchased 2 gallons at a time, but is about 2/3 the cost. I have just been much more focused on avoiding food waste, & find that I can direct my kids to the food on hand and they will eat it. One of the keys to making sure that food doesn’t go to waste is to keep track of what needs to be “eaten up.” In the spirit of doing that, I have instituted what I like to call “clean out the fridge night” where everyone in the house decides which leftovers they want for dinner & we have a “buffet.” We waste much less food, & have saved a lot of money on very delicious, healthy & fresh foods by shopping in bulk. I understand that it’s not for everyone, but if it works for your family, great.
Wow, Susan, a pleasant shopping experience at Costco? Mine is just the opposite. I have to steal myself to go in there. But Trader Joe’s, yes, that is a lovely place and I’ve found that since we now have one closer, I’d much rather skip the crowds and bulk buying at Costco and frequent TJs more often. So maybe the quality of the experience has something to do with it. It’s simpler for me to just get what I need when I need it, and have a stress free, happy experience to boot.
Another thing to watch for when buying in bulk: liquid hand soap.
The bulk version comes in a bottle without the narrow nozzle you need to help you refill your vanity pump without spilling it everywhere. I actually had to buy a regular size refill and then re-fill the refill bottle before I could use the bulk soap! Yup, stupid.
I’ve also noticed that the bulk shampoo/creme rinse is also sold in bottles that have HUGE nozzles. So you end up using more than you would otherwise because 1 squirt is a lot larger now.
Another thing to look out for at warehouse stores: our Sam’s club where I live sells bulk food that should be “unperishable” but ALWAYS it is sold *at* the sell-by date.
For example, canned beans, tomato paste, pasta sauce, even cold cereal. All kind of “off” in color or stale even if you eat it right away. No way would you want to eat that 1 year after buying it!
US families/living together groups are getting smaller, but bulk packaging still seems to assume huge families. We bought a box of kosher salt and it lasted almost a decade, since except for bread baking and a few other times, you don’t need as much salt (or any) as many recipes call for.
I also recently found out that the pen I like the best, and was considering a multiple, if not exactly bulk, purchase of, was actually one for which you could buy a refill and two refills cost less than one of the pens. Cleverly, the shop where I buy such items keeps the refills in a different area from the pen display… and lots of places don’t sell refills at all.
My stylist says that most people use way more “product” especially shampoo and conditioner, than they need, and I am always amazed at people who buy large sizes, even if your hair is long, you don’t need as much as you think!
The one thing we should be buying in bulk at the moment is hand sanitizer; my husband is using it hourly, I think.
I don’t get the bulk buying thing. If I need 1 can of tomato sauce, then that is what I need, not a case.
Storage is certainly an issue but I think there are more deep seated issues with bulk buyers. Bulk buying may stem from a fear of lack. Lack of money for food, lack of money for other things. Lack of work, lack of everything. My mom stored bulk food. She was worried my dad wouldn’t have work and we would starve. That never happened.
I think we also as a society spend more time planning what we will eat than what we will do with our lives.
Buying things you don’t need or want, simply because they are cheap.
I caught myself almost doing this today when I stopped at the mall to pick up some things for my outfit on Saturday. (Wedding to attend, not Halloween.) I was perusing the sales racks of a store I don’t really shop at much, and thought about getting a pair of brown leggings just because they were $3. Then I snapped to my senses and realized I would never wear them…
I still walked out of there having spent $20 on three things when I only went in for one. I got leg warmers (for the wedding, sounds weird I know) and also picked up two necklaces, either of which will match my dress well. I feel a bit guilty, though, since I’m worried I’ll change my mind about the leg warmers. (I’m not very trendy, and these to me are rather trendy.)
I don’t feel too bad, but I also spent $5 ordering photos today. Saved $12 using a coupon, though, so I guess I shouldn’t feel too bad? $25 won’t kill me, I just don’t like days where I feel like I spend a lot!
@ Gen Y Investor #3
I hear you! I am under trauma after buying a stack of toilet paper from Costco early this year. I hate the toilet paper now and can’t wait for it to get finished (maybe February 2010) so that I get back to my routine of buying a different type every two months or so. So much for bulk buying!
That aside, I am a keen bulk buyer as I always buy sugar, flour, dry beans, nuts and most food items from the bulk bins. Recently I have become a hater of packaging too. I usually only buy what I need for a week or two so I avoid looking at piles of food items stocked in the kitchen or wherever!
I rarely buy things in bulk. I agree that there are those pitfalls. However, I usually use simple rules for buying things in bulk:
-don’t buy perishable items in bulk
-buy non-perishable items that you absolutely use in bulk
Pretty simple at first sight. It only get a little bit complicated with with the item #2. Because it is difficult to know which items you really use the most sometimes.
In order to do that, you must be aware of your own habits, which would mean that you would have to track your purchases for a while to learn your own buying and usage patterns. Not an easy task, but doable.
Just like you mentioned in your first point, sometimes you tie up too much of your money at one time by buying in bulk. Simply put, buying in bulk has it’s opportunity cost.
To make sure you CAN buy in bulk, I would suggest to know all of your monthly expenses in advance and have money set aside for those expenses and it should not be touched.
Only after you take care of your basic needs, then one can think of buying in bulk.
Best,
Tomas
At Target, the water filter cartridges I use are $7.99 per piece. There’s also a three pack for $29.99.
I had to make sure that it’s really the same product. It is. What’s up with that?
This is a very interesting perspective. I always say… that “A penny saved is NOT a penny earned.” If you don’t need, it’s not a deal regardless.
It could be good as long as you are disciplined and work from a list.
Our staples and savings are:
Soymilk ($4/month)
Bread ($2/month)
Cheese block (my husband LOVES cheese) ($2/month)
dog food ($10/month)
spaghetti
and we do have enough storage space. costco in particular has good quality stuff including some organics.
Just the above justifies the $45 annual fee but again we have to be careful and my husband tends to buy too much snacks, like the following stuff about to go to waste:
raisins – who needs a pint of raisins?
popcorn – who needs a gallon of popcorn?
giant chip bags – resealable but goes stale after a while
more chips –
however, without that membership we could still get deals but need to have good timing.
I don’t remember the last time a pen of mine ran out of ink. I think one pen can last a year. So the pens are not a bulk item for me.
The rest depend on what you use, and how much of it. Yes, you can buy a huge amount of something that goes bad, but that’s not Costco’s fault. Note to self: You don’t have room to store a gallon of mustard. It took you three years to use it up. No mo’ mustard.
Their guarantee/return policy on electronics is great, and that alone can pay for the membership. Many of their food items (e.g. shrimp, beef tenderloin) are 1/2 to 2/3 supermarket price. One holiday dinner (with company) and the membership is saved.
As far as Costco goes, I save the annual fee just from gas purchases. They are always the best price in the area.
I read in an article on ezine that buying there are many people who have money but there are very few who knows how to use them. I completely go with this point. Many people are buying rubbish things as the prices are low or they have attractive offers attached with them. This is ridiculous as how one should have some understanding before investing. Better if they buy something relevant to them. Anyway thanks Sierra for the post and raising awareness among people.
@Neale #16 – I was just scrolling down to say much the same thing…
We often make the mistake of buying treats in bulk. Granted, you do save money per unit, but you get through it a lot faster than you would go through that quantity if you had to buy an individual pack each time you wanted, meaning that:
a) you end up spending more money when calculated over a unit timeperiod rather than unit quantity
b) most of these treats are not the epitome of healthy eating, so it’s a bigger dent in your health to have it on hand and therefore eat more of it.
c) the treat loses its novelty, which results in a lost pleasure (which we replace with another treat, and so the cycle continues…), and also means that it becomes taken for granted so yet again, we eat more of it.
So, bulk is only good for buying staples and non-perishables in our household
It all takes temperance and forethought.
Since I have honed in on saving money–I have yet to make any kind of “real” bulk purchase. Maybe diapers, but that’s it. Cuz I know that I will use them.
And not falling into the trap of buying crap you don’t need just cuz its cheap is not easy–but definitely doable.
Keep in mind the two questions–Do I really need it? Do I really want it?
My rule for buying in bulk. Always ask:
#1 — if I buy it, will some of it go to waste? #2 — if I buy it, will some of it go to waste (considering my overeating as waste)? #3 — Do I have the proper room to keep this in storage?
If you can answer these three questions correctly, then you can buy it. Otherwise, buy the lesser amount and pay more per item — you’ll be paying less overall.
This is from a post I wrote about foodshopping:
http://shomershekalim.wordpress.com/2009/07/08/7-tips-for-foodshopping-in-israel/
My wife and I don’t buy in bulk for the home. To me, it doesn’t make sense to have to pay an upfront $50 membership fee to a typical Costco or Sams Club, and then have to spend at least roughly $100 in cash (or debit) each time you go to that store. The ‘savings’ would just about pay for the $50 fee for us.
If I need to buy soaps, detergents, light-bulbs or home stuff, we’ll go to walmart when we feel like we can put up with the clientele to save the extra couple dollars and target when we aren’t up to it when that extra $2 savings doesn’t matter.
In terms of food, we go strictly to one foodstore to build up the points associated with that store, which usually leads to a 10% off or sometimes a 15% coupon. This leads to a big savings on top of coupons we are already using on a $300 monthly ‘big grocery shopping’.
There is a bulk big box store like Costco called Makro in Thailand. Interestingly there is more commercial traffic and the people who buy there tend to break up and repackage the bulk items to sell in smaller packs to individuals- making a little profit in the process.
Seems like a good model for the urban areas of the USA as well.
-Mike
My worst problem is when I change what I like. Examples:
* I become a different size.
* I learn of a food allergy, skin allergy, etc.
* I start buying only recycled/organic/fluorescent/natural/etc.
* I switch to reusable items such as a hanky instead of tissues, cloth napkins instead of paper, rechargeable batteries, etc.
* I replace a broken coffee pot with a new one that uses different filters.
Another problem is spoilage. I’m not just talking about food not getting used before it goes bad, I’m talking about pens drying up, a power outage ruining everything in the freezer, a water leak ruining paper goods, a heat wave/power outage melting candles.
This is one of the issues where a desire for minimal clutter collides with a desire to be frugal. For me, it is a personal decision that living without a lot of “stuff” wins out over saving some money. I would feel differently if I had a big pantry, an attic, a basement or an extra freezer. But I don’t!
Buying books? Haven’t you heard of the library? You’re already paying for the books, you might as well enjoy them!
Totally agreed about the storage issue! Because we’re trying to make our small home more liveable, we’re allowing ourselves to spend more per item on many things, so that we’re not wasting money overall by not being able to find a place for bulk items, not being able to use them up before they expire, or outgrowing our affection for them. We used to be bulk-buying addicts, and it’s been a slow process to wean ourselves off the idea that cheaper-per-item is always better.
I find myself going through supplies faster when I have a greater quantity of them on hand. That last Mach 3 razor cartridge always seems to last twice as long as the first seven in the pack doesn’t it?
Great, thought-provoking post. I am a victim of my mother-in-law’s bulk buying obsession. I am currently trying to get through 3 tubes of nasty cheap shower gel, canned green beans and creamed corn, and about 100 pairs of white tube socks. She also has a problem with bulk knitting — we have received about 10 pairs of slippers in the past year alone. I am grateful for the intention behind these gifts and would never complain to her, but the truth is I feel oppressed by all this STUFF. I could give the food to the food bank, but then she’d notice we’re “low” on beans and get us some more!
One of my best and worst bulk buying experiences was belonging to a food-buying co-op. I got high-quality (organic, unprocessed, local) food for 30-40% cheaper than retail. Buying extra-large sizes and sharing with other members was especially cheap. In the end, the extra work was a pain. There were meetings, food sorting nights, order forms, and some messy spills (don’t buy vats of honey for sharing, just don’t).
Buying bulk is great when you do once a month cooking. Stuff gets cooked and frozen and nothing goes to waste. You find that you don’t over use something just because you have so much when you ration is out in recepies over a month.
Rachelle, how about presenting your MIL with a pattern book of something that you WOULD like?
I buy Arborio rice at a restaurant supply store. It has a zip-lock top. I put it in a jar that I bought at the grocery store. When it gets low, I refill it. I much, much prefer it to long grain.
I also buy canned chicken in bulk (6 cans, I think) and tuna fish (12 to a pack, I don’t buy Albacore). I buy a baby loaf of Tillamook Extra Sharp Cheddar from Costco. It only costs me $7.99 a loaf. Just my savings from the cheese alone pays for my membership for the year.
OTOH, my SO bought a bag of wasabi mix (a restaurant size bag!) and has never opened it.
Terri, what’s a pattern book? I’m reluctant to give my mother-in-law any suggestions. I think the notion that anything but price would determine my preference would be alien to her (“peanut butter is peanut butter”). I’m a bit of a granola-head, preferring whole, natural foods, sometimes organic. But I will talk it over with my partner and see what he thinks.