Quantity Purchases Aren't Always a Better Deal

Here's an example that buying in quantity isn't always a better deal. We've been taught by companies to think that you save money per item when you buy in bulk, but that's certainly not always the case. Be sure to do the math to find the best deal.

Comments

[Katy Raymond]

Perhaps the very reason the marketing companies have taught us that we always save by buying in bulk is this: They know a WHOLE LOT of people can't DO the math!!

I have gone shopping with a bargain loving friend who says things like. "OK, this item usually costs $12.00. Today, it's 10% off. So, how much would that make it?" I am not kidding. A smart girl in many ways, but since she wasn't taught math, she can be taken to the bank.

[angeline]

In some grocery stores, the shelf label will tell you (in superfine print) the cost PER UNIT. So I compare, say, cereal boxes, one large and one smaller of the same kind, and usually the price PER UNIT of the smaller box is LESS than the price per unit of the larger box. You would THINK that the price per unit of the larger box would be less, but that is not the case...but I bet more people buy the larger box because they think it's a better deal.

[Odnal]

The other thing to keep in mind is that buying in quantity only does you good for items that you will actually use. I used to buy bagels from a warehouse store because they were cheaper, but I had to buy 9 at a time. However, I only would get a chance to eat 5 or 6 of the bagels before they started getting moldy, so that really made the price more expensive for the ones that I was able to use. I can buy them individually at a grocery store for a few cents more, but since they don't go bad before I eat them, I actually save money.

[Mark Framness]

There are a lot of good economic & mathematical reasons why bulk purchasing delivers cheaper unit costs.

Marketers just do not necessarily pass the savings on.

Everyone thinks Duty Free stores must be a good deal, right? They are for the stores, because what is not charged in taxes they can zap you for in greater margins (in some cases you can actually save). However, most people assume no taxes means cheaper.

Just because someone can produce or deliver a good for less does not mean they will sell it for less.

The math is simple most people understand it, they just do not want to bother with the work it entails.