Shopping in bulk can be cheaper, but make sure you are going about it the right way. Take these 5 tips to ensure you are making the most of your money!
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Bulk stores such as Costco and Sam’s Club do have some great deals, but that doesn’t mean you’ll always save money shopping at one of them. If you’re like me, three things are working against you while you push that ginormous cart.
Fall prey to those pitfalls and you might end up wasting money. Shop smarter and you’ll not only stop wasting money – you’ll start saving a lot of it.
1. Stick to one membership.
Having multiple bulk-store memberships ensures you get deals on different products — since they all carry slightly different stuff – but you could end up paying more than $100 each year just to get inside the stores. As of December, club memberships varied from $40 to $55 annually.
It’s cheaper to pick one bulk store and stick to it for a year. If you need help choosing, check out How to Pick the Best Wholesale Club.
2. Or don’t buy a membership at all.
Bulk stores generally let a member bring in one guest. (I usually bring a friend with me to Sam’s Club.) If you don’t plan on going more than a few times a year, why not piggyback on someone else’s paid membership? You just saved at least $40.
If you do plan on going regularly, you can split the cost of membership with a friend or family member. For example, Sam’s Club gives you two membership cards for $40, which I split each year with my sister. We don’t live in the same house – or even the same city – but it’s never been a problem.
3. Compare price per unit.
Bulk stores have cheaper prices on most items. A study conducted by the United States Department of Agriculture(.pdf file) showed that 86% of the food items it compared cost less at a bulk store. (The USDA found the largest savings in meat, canned goods and store-brand foods.)
But that means 14% didn’t cost less. When you factor in sale prices or store card discounts, it may be cheaper to buy certain foods at the grocery store. To be sure, calculate the unit price for the things you buy at the bulk food store and the unit price for the same items at the grocery store. Then compare the two.
4. Buy the store brand.
Many of the bulk stores carry their own brands of cleaning products, laundry detergent, pet food and some nonperishable foods. And the store brand usually costs less. For example, Sam’s Club sells Tide and their brand,Member’s Mark.
In this case, buying the store brand will save you 12 cents a load. Doesn’t sound like a lot, but how much laundry do you wash in a year?
5. Split perishables with a friend.
Bulk stores have good deals on fruits and vegetables, but I know I’ll never eat 5 pounds of apples, and I don’t want to freeze them. Instead, I split bulk packages of perishable food with a friend. We each pay for half, and I get the bulk price without wasting food.
Get more information at MSN Money!
— Wealth Building Daily
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