by Imonikhe Ahimie

Created on: July 20, 2010   Last Updated: July 21, 2010

Bulk buying is the process whereby a commodity is bought in large quantities so that the buyer gets preferential terms as compared to those buyers who buy smaller quantities of the same commodity. This system of buying has long been used in international and wholesale trade, but in the last several years, it has become increasingly common in retail trade so that retail buyers are offered discounted prices when they purchase large quantities of a product. The process has been driven by the creation of warehouse/discount stores and clubs who pass on savings they themselves have made by bulk purchasing items from manufacturers and producers to their own retail customers. If one is already a bulk retail buyer or if he/she is thinking of becoming one, there are a few pointers that may prove useful to such folk.

First, one ought to be aware that, although they provide essentially the same service, the process by which the service is delivered is somewhat different between warehouse stores and warehouse clubs. The stores are just that, general stores open to all and sundry who desire to buy goods at lower bulk prices. The clubs, on the other hand, are membership organizations run for the benefit of subscription paying members. Keeping in mind that no matter how deeply discounted the products offered by any particular store and club are, if you do not buy them then you make no savings.

So it is worthwhile, if one is thinking of becoming a member of a subscription only club to find out whether they stock the products that one is interested in as well as determining in one’s mind how frequently one will make use of the club’s services. If the club does not carry the lines that one is interested in or if one uses the club’s services only infrequently, then one would not be receiving the benefit, or, at least the full benefit, that ought to derive from membership. Occasional bulk shoppers would probably be better off buying at ordinary warehouse store even if the discounts offered are not as deep as those offered by a club.

Is bulk buying really necessary for you? Although bulk buying may offer savings to some, does it really offer you savings? A single person who bulk buys, for instance, may find that he/she is actually spending more by choosing to bulk buy whereas a larger household is making considerable savings; it’s simply a matter of economies brought about by the larger scale on which the larger household operates as compared to the one person

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