Why buying groceries in bulk doesn’t always save you money

As we all look around to save on grocery bills, it’s worth examining that old chestnut of the advantages of buying in bulk.

Logic should dictate that buying in bulk brings all the advantages of economy of scale, but is this always true?

Well, yes and no. Let’s take a deeper look.  

Is it actually cheaper?

I love a bit of time with my oversize trolley perusing the aisles of Costco, but if there is one thing I have learnt, it is that bigger isn’t always cheaper.

Certainly, there are bargains to be had at box store outlets, but don’t think a three-pack of washing powder is always a discount. Quite often if you buy the same product on sale at a regular supermarket it will be considerably cheaper, especially if it’s on a half-price special.

There are some things that Costco does cheaply. For example, mince, bulk fresh foods, bulk catering items and many of its specialty lines such as overseas foods you simply can’t get elsewhere. But if you keep an eye on unit prices, sometimes it’s just as cheap shopping at your local supermarket.

My tip, if you are unsure of a bargain, do an online search for the product at a competing retail outlet. This should bring up the price as well as the unit price so you can make an honest comparison. 

Will you use it?

Tempting as all those giant products and their cheaper prices are, will you actually use them? 

Consider a litre of mayonnaise or a 20kg pack of potatoes. Cheaper, yes. But will you use it before its use-by date? 

And you might find yourself trying to use it up, just because it’s there and you need to get through it, which is fine with healthy food, but not so great with a bottle of mayonnaise as big as your head. 

Will you use it too much?

Weigh up if you are doing the right thing if you just eat up all the food anyway. If I bought a bulk pack of chips I would eat far more than if I just bought a packet of chips a week. 

It might be in bulk, it might be cheaper, but is it good for you? 

I once had an impulse buy of a giant plastic jar of jelly beans that would have given me diabetes by the time I got through it. I was so ashamed of myself I took it to work and let others have go at it. It was almost $50. Diabetes avoided, but money down the drain. 

Do you have room for it?

I know this is probably the least of your worries, but, realistically, do you have room for a 48-pack of toilet paper? 

A former work colleague put it best when he said he’d have to repurpose such a large pack as furniture before he could fit it in his flat. I love the image of a casual armchair made out of two-ply unbleached rolls, but that’s just me.

Tipping giant packs of groceries into your trolley is very satisfying, finding a place for it … not so much.

People also think they will save money using a stand-alone freezer or storing produce in the fridge. But take into account the cost of an extra freezer and the cost of running both a fridge and freezer, and your savings are probably negligible. 

A good tip to avoid this problem is to divide up and share the costs with a friend or family member. 

Budget breakers

And lastly, there is the strange issue of paying less actually costing you more.

Every time I go to Costco, I buy six or seven things, but I end up paying about $200 even for those few items, and that’s before all the stupid impulse buys. And that’s on top of my usual grocery bill. It has to be said, I don’t go every week, and it’s fine if you can afford it, but if your carefully balanced weekly budget doesn’t run to a random $200, then bulk buying may not be the answer for you. 

Do you buy in bulk? Why not share your tips in the comments section below?

Also read: Science steps in to explain why we don’t like self-checkouts