Buying Things At Wholesale: How And Why

0
Buying Things At Wholesale: How And Why
MichaelGaida / Pixabay

Too many people are just fine with spending extra money on things because they are buying them from a middleman. Instead, they should be buying what they need right from the source, through wholesale distributors. Of course, as people learn that wholesale shopping will actually save them money, buying from wholesale vendors is becoming more commonplace.

Play Quizzes 4

Why You Should Do It

You might have thought that by spending as little as you can in a single shopping trip, that you are saving money. The fact is, when it comes to items that you purchase a lot over the course of a year, not buying in bulk will cost you a lot more.

Morningstar Investment Conference: Gabelli Funds On Where To Invest Amid Inflation

InflationNumerous news headlines have trumpeted major concerns about inflation, which has been at 40-year highs. But how should investors handle inflation as it pertains to their portfolios? At the Morningstar Investment Conference on Monday, Kevin Dreyer, co-CIO of Gabelli Funds, outlined some guidelines for investing in the age of inflation. Historic inflation Dreyer started by Read More

Make a list of things you buy throughout the year. Think of things like toilet paper, paper towels, and garbage bags. Figure out how much one bulk order of your favorite toilet paper (for example) will cost versus how much you would spend if you bought the same quantity of that item at a “regular” store. It shouldn’t take you long to see that there is substantial saving when you buy in bulk. Now consider multiplying that with a few other items and you’ll see how much more disposable money you’ll have at the end of the year.

How To Do It

First, you’ll need to consider which items you want to buy in bulk and which items you want to buy individually, but still find at wholesale prices.

A great example of this is clothing. Very few people need (or want) to buy 200 shirts at one time, so they resign themselves to paying retail prices when they go shopping. Don’t do this. Instead, look for sellers who allow the purchase of individual pieces of wholesale clothing; Shirtspace, for example, allows you to build your cart one item at a time. Since you can buy individual pieces of clothing cheaper, you’ll have much more to spend so you can actually buy more. Instead of only being able to buy two shirts at a local overpriced retailer, you might be able to buy four or five.

As for the items that you want to buy at retail prices, you will need to check out both your local brick and mortar wholesale stores and online stores. With online stores, you might find you are able to get an even better deal, simply because they don’t have the expensive overhead costs faced by brick and mortar stores. Be careful to avoid going overboard, which is really easy to do when you see how far your money is able to stretch.

Getting Ready For It

Before you shop, make room in your home for your bulk purchases. You may need to put up some shelving units, so you can keep everything organized. Being able to easily see your stock reduces your chances of accidentally buying more of something than you need to buy. Make sure the space is well cared for. Seal any leaks, keep the moisture levels stable, limit air exposure for perishable goods, etc. After all, ruined stockpiles defeat the purpose of buying in bulk because it will all need to be purchased again.

As you can see, there is some planning involved but there is also a lot to be excited about. Start looking into your options for wholesale shopping so you can begin to save money right away.

Updated on

Ankur Shah is the founder of the Value Investing India Report, a leading independent, value oriented journal of the Indian financial markets. Ankur has more than eight years of equity research experience covering emerging markets, with a focus on India and South East Asia. He has worked as both a buy-side investment analyst for a global long/short equity hedge fund and a sell-side analyst for an emerging markets investment bank. Ankur is a graduate of Harvard Business School. You can learn more about his latest views on global markets at the Value Investing India Report. -- He can be emailed at AnkurShah47@gmail.com
Previous article Wynn Resorts Ltd. (WYNN) and Eleven Biotherapeutics, Inc. (EBIO) Activist Update
Next article Tools To Live A Life Full Of 5 Day Weekends

No posts to display