Buying wholesale, instead of regular retail, is something that many people have adopted with the intention of saving money. By buying in larger quantities, they can bring down the price per unit, whether it’s paper plates, bags of flour, or even bath and body products. Sometimes the bigger order means that you can buy directly from the producer or the distributer and cut out the middle man, giving you a better rate.
However, as appealing as this sounds to all those who consider themselves budget conscious, there are definitely pros and cons to this method of purchasing.
Pros
Cheaper Per Unit Price
Like mentioned before, buying wholesale means that you get a better price per unit, even if that means that you need to spend more at a time. When it comes to products that you use a lot of or can easily resell to friends and family, this is a great way to get a deal. Just remember that per unit price is not the same as the overall price that you will have to initially pay.
Fewer Purchases
If it’s something like shampoo you’re after, if you have the chance to buy it wholesale, you likely have to write “shampoo” on your shopping much less frequently than before. When you use the wholesale model for most of your consumables, including items like paper, batteries, etc., you really just need to supplement your pantry with fresh items like fruits, vegetables, some meats, and baked goods. This is something that is very useful when you have a family with lots of kids or a busy work schedule in which a trip to the store is an ordeal with a heavy time investment associated with it.
Better Selection
When you buy wholesale, you usually have a better selection than what you would get in a retail environment. Since you are already giving them some good business, sellers are more inclined to offer you exclusive products or services that they might not offer the masses or retailer won’t match. If you find a diecast wholesale seller including car models, 1/24 models, and more, they will offer you a wider selection than a retail seller that has to think about what will sell in their store, not whether or not you want it.
Cons
More Expensive Investment
When you buy wholesale, there is usually a minimum order or amount that you have to buy in order to secure a preferential price. If you are just one household, it can be difficult to balance the family budget when you just spend $100 on olive oil at once, even if it does last you for the next two years. Additionally, most wholesale retailers like Costco charge you a membership fee that gives you access to these lower prices.
Storage
Once you do buy these large wholesale quantities, it’s difficult to find where to store it until you need to use it. If you have a large home or storage facility, it might not be an issue. However, if you live in a studio apartment, wholesale purchases might not be the right fit for you.
Risk
There’s some risk when it comes to buying wholesale. One is, what if you don’t like it or it’s not what you were actually looking for? Now you are stuck with an overwhelming amount of it and if you discard it, you are losing money. Alternately, some items expire and if you don’t use them by the best before date, you are also forced to throw them out, a risk that the retailer traditionally takes.
Buying wholesale can be the right thing for you and your budget when it something that you know that you will need or use, and have the means to store it. However, if you have trouble paying for these items upfront, storing them, or using them before they hit expiration, you might want to consider going the traditional route and just getting them from your local retailer.