If you are becoming serious about budgeting and saving, buying your monthly groceries and other items in bulk is an excellent strategy. The reason for this is that when you go about bulk buying in the right way, you will save a significant amount of money every month and relieve the financial pressure you may feel now. What is more, the money you save adds up over time and can be used to pay off your debt or boost your savings. This opens the way for a better future.
When times are tough, it may be tempting to indulge in treats and products that make you feel better in the short term. But exercising a little financial discipline now will soon lead you to enjoy a better quality of life.
So, if you are deciding to buy in bulk for the first time, below are several guidelines from Motlatsi Mkalala, Head of Main Market at Standard Bank, that you can follow to make this strategy really work for you:
- Only buy items that you or your family use on a daily or regular basis in bulk. Start by drafting a list of the items you need and stick to that list when you are in the grocery store. Think non-perishables like pet food, toilet paper, soap, oats, nuts, canned food like tuna, box milk, coffee, tea, pasta and grains, toothpaste, toothbrushes and other toiletries, washing powder, dishwashing liquid and vitamins.
- Make sure that you have the necessary space to store bulk purchases in your home. If you have a big freezer, it is a good idea to make use of the meat specials at your local butcher or local grocery chain store.
- Only buy items that last. Some consumers are not aware that body lotions, sun creams and even bleach have expiry dates and will expire before you can use a great quantity. So make sure that the items you buy in bulk are those that keep well.
- Buy enough goods in bulk so that you only make one or two trips to your chosen grocery store per month. Fewer trips to the store will mean that you spend less as you are not tempted to buy extra items that aren’t on your shopping list or the treats displayed in the check-out line.
- Plan ahead so that you don’t have to make emergency shopping trips. Dashing out to a convenience store to get items like washing powder, toilet paper or coffee often turns out to be expensive and will undermine your effort to save through bulk buying.
- Think out of the box: Bulk buying and saving does not only have to apply to groceries and other household times. You can also buy pre-paid electricity, airtime, data and transport in bulk. Calculate how much you want to spend on airtime and data per month and buy this in one bundle in advance. A monthly train or bus ticket, if you use these modes of transport, might also stand you in good stead.
Buying in bulk is not about the cost of a product but the lower price per unit. You can figure out quickly if you are getting a lower price by comparing figures such as the price per gram of a product. This method of planning and buying is a key step in managing your finances effectively and brings the added benefit of giving you a sense of control over your expenses when the economy is challenging.
Also remember that these guidelines are only a start to bulk buying, there are many ways to do it creatively like joining a buying group in your community that shares goods between them or buying directly from a food producer in your region who is willing to negotiate prices of quality food.