When to buy wholesale vs retail
WHOLESALE shopping might sound like the best option for the thrifty and practical woman who has mastered the art of budgeting, but in reality, shopping wholesale is not always the best way to go.
Local thrift shopper Trevann Hamilton, curator of the Goody on a Budget blog, explains that shopping wholesale can save a pretty penny over time, but in some cases it can pierce an unnecessary hole in your pocket.
“Buying wholesale means you purchase a large quantity of an item, and pay less for each item than you would if you had only bought one,” she defined. “Usually you make small savings when you buy three of an item, but the savings increase with the number of products, such as when you purchase an entire box or case.”
Hamilton outlines when buying wholesale makes sense:
When you really need more than one item
“The best items to consider buying wholesale are those things that recur on your weekly or monthly budget — the things you are sure you will use,” she advised.
“Things like laundry detergent, tissue, bath soaps, oil, and tin food are great to buy in bulk, because they won’t go bad before you get a chance to use them, and they are constantly needed in the home. It would not be wise to buy something like pasta sauce wholesale if you only use it once per month.”
When the savings are worth the extra spend
“Buying wholesale does not always save you money,” she pointed out.
“Buying three or six items, even if the supermarket promises that you save a few cents on each item, still technically means that you are spending more money than you set out to. Don’t think about the five dollars that you will save, but instead think about the extra $500 that you will have to spend to get the savings.”
When you can control usage in the home
“You might need to hide some things in your home from your family if you really want to save,” she cautioned.
“Because we tend to use things more generously when we know there is more available. For example, if you buy a large bottle of dishwashing liquid, still keep a small bottle to pour some in, and refill every time it finishes.”
When it does not make sense to shop wholesale
When you have to be inconvenienced to get the discount
“I do not recommend buying clothes wholesale,” Hamilton said bluntly. “If it’s really one pair of pants that you need, and it’s for $1,500, but wholesale it’s $1,000 each if you buy three, you didn’t save any money. You just spent $3,000 when you were only going to spend $1,500. Unless you and a friend are buying the three pants or you sell clothes, it’s best to buy retail. Buying clothes wholesale often means you have to take three different sizes, which makes no sense unless you are shopping for three people.”
When you want variety
“I recommend buying things like underwear by the pack, because you can get 12 for $900, instead of buying a single one for $300,” she offered. “But if you do not want 12 panties in the same style, or sometimes colour, then it’s best to buy them individually. The same goes for things like jewellery and accessories.”
When the goods will go bad before you can use them all
“It’s pointless to buy a dozen baked products right off the bread truck if you cannot eat them all before they start growing mould,” she said. “For things that have close expiration dates, it’s best to buy retail.”
When the quality is poor
“The only thing worse than buying one handbag that is dry rotting is buying three handbags that are dry rotting,” Hamilton stated. “Ensure that the goods you are getting that huge discount on are not defective, close to expiration, or generally useless. What you consider to be a big saving might end up being a big waste of money.”
For more of Hamilton’s thrift tips, you can check out www.goodyonabudget.wordpress.com.
