This post may contain affiliate links. Please read my disclosure for more info.
For 10 years now, my wife and I have been using my mother-in-law’s Sam’s Club membership to save money buying items in bulk. We’ve been saving money buying bulk items like toilet paper, paper towels, dish soap, razors, toothpaste, etc.
If done correctly, bulk purchasing can mean less trips to the grocery store or supermarket, and more cash in your pocket over the long run. If you haven’t already, this extra money could be used to pay down debt or start saving money for your future.
What Does Buying in Bulk Mean?
Bulk purchasing is buying more than you would normally in order to get a better price per unit.
Why is Buying in Bulk Cheaper?
Buying in bulk is typically cheaper because suppliers and retailers are willing to lower the price per unit and receive less profit if they have a sure sale.
A sure sale with a higher quantity of items means they don’t have to deal with costs like storing the item, stocking it on store shelves, or having the item go bad prior to sale (and dealing with sunk costs).
How to Save Money Buying in Bulk – Tips and Guidelines
Make Sure You Have Somewhere to Store Your Bulk Items
Before you even consider buying items in bulk, you first need to make sure you have room to store it. Identify where you’re planning on storing your bulk purchases before you start, so you’ll know how much room is available for different items.
We typically have specific areas in our pantry that we use for different food items like baking supplies (flour, sugar, baking soda, vanilla, etc.), spices, oil, vinegar, etc. When we laid out these spaces, we purposely made sure there was more room in each space for extra stock.
We also use various cabinets in the bathrooms for bulk toilet paper, hand soap, first aid items, etc.
The space(s) you choose will determine how much room you have available for purchases. Keep this in mind when buying in bulk.
Where to Buy in Bulk
Consider Joining a Warehouse or Club Store
Sam’s Club is the closest store of it’s kind near us, but we’ve also used Costco from time to time even though it’s a little further away. These stores have sizeable discounts on all of the items they keep in stock.
They do require memberships, but you could easily share a membership with family and friends and just pay your percentage of the costs. Memberships are usually fairly cheap and there are often promotions for discounted memberships.
Other Stores and Online Retailers
Some other stores and online retailers to consider for bulk purchasing are BJ’s, Boxed, Jet, and Amazon. To get even more savings with Amazon, you should consider Amazon Subscribe and Save for your recurring purchases.
Keep a Rough Inventory
Before you start buying in bulk, try to keep a rough inventory of the items you have. You can use this to help keep track of when you need to buy certain items and use it to keep from buying items you already have.
Don’t Overstock
Don’t buy products just because they’re on sale. Don’t buy more than you can reasonably store at home.
This will be different for everyone, but as an example, if you buy enough paper towels to last you the next two years and it’s taking up one of your closets, you’ve probably bought too much.
Compare Using Price-per-unit
When comparing prices for items across multiple retailers you need to compare by price-per-unit to have an apples-to-apples comparison.
A lot of places provide this calculation for you, but to check it or calculate it yourself, simply divide the total price by the unit of measurement (i.e. ounces, pounds, each, etc.).
Say a container of chicken broth contains 32 fluid ounces and costs $5.00 total. In this case, the chick broth would be ~$0.16/ounce ($5.00/32). This allows you to compare it to smaller and larger sizes on a price-per-unit basis.
Do Not Buy Items in Bulk That You’ve Never Tried Before
As a rule of thumb, you don’t ever want a bulk purchase to be the first time you try an item.
Imagine finding a great deal on a bulk purchase of healthy drinks. You think, “what can go wrong? It’s both healthy and on sale. How bad could it taste?”
You buy it, take it home, and try some. It has the flavor of seaweed and the consistency of chalk. You quickly realize you’ve made a mistake (this may have happened to me…)
Don’t let this be you. If you’re going to try something new, buy a single item first before jumping in with a big investment on a bulk purchase.
Do Not Buy Bulk Perishable Goods if You’re Not Going to Use Them
Another good rule of thumb is to only buy what you’ll actually use. This is especially important for items that are perishable.
When you’re considering a purchase, make sure to check the expiration and ask yourself, “will I use this product by the expiration date?”. If not, consider buying something smaller, whether it can be frozen (meat), or not buying the item altogether.
Stack Coupons and Sales When Bulk Purchasing
I don’t personally use a lot of coupons, but I certainly take advantage of any sales that are available when buying in bulk.
Before you go to the store or website to make your purchases, first make a list of the items you’re planning on buying and do a quick search for coupons and sales.
You may find another retailer has a better price because of a sale or you may find a coupon that can save you a little more on a few of your bulk purchases.
Gradually Buy in Bulk to Spread out the Expense
When you start buying in bulk, try to start gradually. Bulk purchasing requires a larger up-front investment than normal shopping and, as such, should be done in batches so that you can stay within your monthly budget.
Split up Bulk Purchases with Family and Friends
If you can, try to split up your bulk purchases with someone you trust like family members or friends. This allows you to both save more money without having to store as much. This also makes it easier to buy perishable items as you no longer have to use as much before it expires.
Does Buying in Bulk Actually Save You Money?
In my experience the answer is absolutely. We’ve been successful saving money buying certain items in bulk (specifically non-perishables). I estimate we save at least a few hundred dollars a year buying items in bulk.
Everyone is different in their buying habits (what, where, how much), but if you follow the guidelines above, you’ll be successful saving money buying in bulk.
Do you buy in bulk?
What retailers do you use?
How much do you save a month? year?