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Shopping In Bulk

By Independent Bank February 2 2018 Savings Tips

Does it really save you money?

Bulk WarehousesBulk warehouse memberships are on the rise in recent years. Costco, Sam’s Club and BJ’s have entirely altered the retail space and changed the way people shop for groceries. Instead of hitting the local market, people are heading in droves to bulk warehouses to stock up on paper towels, condiments, and other household needs. But have you ever wondered whether or not shopping in bulk is saving you money?

Are the Prices Better?

While bulk warehouses can offer a better price per unit on many items, not all products at a bulk warehouse are a steal. You can save, on average, about 12% on meat and 11% on dairy and produce, but that doesn’t mean that the prices are always better than in grocery stores.

In large urban markets, the pricing tends to be better at bulk stores, believe it or not. Urban areas have less large, chain grocery stores. With less large chains competing against each other, there is less incentive to drive down prices and offer steep discounts. Bulk warehouses in these areas offer a big savings. In suburban areas, however, where real estate is easier to come by, and there are more chain grocery stores, shopping in bulk might not always be a money saver. With stores competing against one another for your business, deals tend to be sweeter, prices lower, and coupons more plentiful.

Can Bulk Stores Cost you Extra Money?

Yes, easily. Bulk stores are set up with impulse shopping in mind. While you can impulse shop for a magazine at a grocery store and set yourself back a couple of dollars, impulse buys at bulk warehouses tend to be far costlier. The setup of warehouses encourages impulse buys, and with a stock of clothes, housewares and electronics front and center, it can be easy to get off track and blow your bulk buying savings (and more) on impulse purchases.

Bulk warehouses can also cause food waste. It doesn’t matter how good a deal you got on six heads of lettuce, if your family only consumed two before they went bad. It doesn’t matter how cheap each unit of milk was if they spoiled before you were able to finish them. Expert shoppers and coupon gurus largely suggest avoiding produce and dairy from bulk stores, and to only purchase meat if you have a large deep freezer available. Otherwise, these items will go to waste and cost you more money in the long run.

What’s a Good Buy?

While there are some potential pitfalls when shopping in bulk warehouses, there are plenty of good purchases, too. Frozen foods are a great option if you have the storage space available. Frozen fruit, for example, tends to be substantially cheaper at bulk warehouses than it is at traditional stores. The same is true for frozen chicken breasts, hot dogs, and even salmon.

Household needs, such as bar mops, garbage bags, paper towels, and toilet paper can be found at exceptional prices, too. Coupon gurus, however, suggest checking your local grocery fliers to see if a better deal can be had. The sale cycle is cyclical, so during certain months products will go on super sale, on off-months, you are better off shopping at the bulk warehouse for these items.

The membership itself can be a steal if you sign up at the right time. Each year, Costco and Sam’s Club seem to run deals on Groupon or LivingSocial for affordable memberships. If you can snag a membership for $20, it can quickly pay for itself.

The Bottom Line

Shopping in bulk, just like any other shopping, is all what you make it. If you make a list, avoid impulse buys, and are informed about what a good price is on a product, you are sure to do well in your bulk shopping endeavors. If, however, you find yourself lacking the discipline to avoid impulse purchases, and fail to check traditional store adds, you might find that bulk warehouse membership is far costlier than the yearly membership fee.

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