Heads Up: The Fed continues to raise rates — up 3% this year — making credit card debt even costlier.
Pay it off today with a low fixed-rate personal loan. View your rate —>

Does Buying in Bulk Save Money?

June 02, 2022 · 6 minute read

We’re here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey. Read more We develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide. We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right. Read less

Does Buying in Bulk Save Money?

Conventional financial wisdom says buying in bulk is smart. When you buy en masse, the price per unit tends to drop. So the thinking goes, if you buy more, the less each unit winds up costing you. Seems simple enough, but like anything financial, there’s a bit more to the story.

It’s worth doing a deep dive on buying in bulk. What do you need to know, what mistakes should you avoid, and do you really save money?

The Pros of Buying in Bulk

Who isn’t looking for ways to save money? A firm financial foundation starts with saving. While the big deal is the potential for saving money on the cost per item, there are other reasons to shop in bulk.

For one thing, it’s typically more socially responsible and environmentally friendly because bulk purchases usually have significantly less packaging per use than smaller purchases have. (Envision a mammoth pickle jar or tub of frosting.)

Ideally, buying in bulk also means you shop less, and that’s less time spent on the road and burning gas.

Then too, who knows what additional savings you might rack up just by being in the store less frequently and having fewer opportunities to pick up things that weren’t on your list?

If you’re the organized type who is big on preparing meals in advance, cooking lots of food and freezing it, buying in bulk can make that endeavor easier.

For sure it’s cost efficient to prepare your family’s favorite pasta dishes and soups and have enough for today and whenever you’re ready for round two, or three.

Finding the Price Per Unit

This is one time you need to do the math. To capitalize on a bulk buy, determine the cost per unit. What is a unit? Think measurements like ounces, square feet, grams, and gallons.

A bottle of olive oil is not a unit. A fluid ounce of olive oil is.

A roll of paper towels is not a unit. A square foot of paper towels is.

Figure out how many units you are buying. Take the total cost of your purchase and divide that by the number of units.

Then compare the unit prices of a few packages of the same product to determine which is the better value.

Ideally, the cost per unit of a bulk buy should be at least 50% below what you would normally pay.

Although a supersized item usually has a lower cost per unit than its smaller brethren, crunch the numbers to see.

How Much Can You Save By Buying in Bulk?

The answer is: It depends. While the amount shoppers save depends on the item, they can anticipate saving around 20% on purchases, though it can be 50% or more.

Foragers can also up their savings from buying in bulk by using coupons for those items.

Remember, what’s important isn’t an item’s price but the price per unit.

Ready for a Better Banking Experience?

Open a SoFi Checking and Savings Account and start earning up to 3.75% APY on your cash!

Two Tips for Buying in Bulk

When you want to stop spending so much and begin buying in bulk, you need a game plan. It’s a good idea to reach for the familiar and sweeten the deal by looking for familiar items that are also on sale. That will snag you the best prices and help keep your bank account well padded.

Stick With What You Know

This is not the time to experiment. If you’re loading your cart with goods, you don’t want to be guessing about whether you’ll love them or not. Go for the family’s beloved items.

Buying in bulk and getting a deal is worthless if nobody wants to eat or use what you buy.
That’s money down the drain.

Search for Your Favorites on Sale

Just like you don’t want the tax tail to wag the investment dog, you don’t want to buy what’s on sale solely because it’s on sale.

When trying to cut your grocery bill, the goal is to get what you know and love on sale, not to be overly adventurous. The latter can leave you disappointed, with a few fewer dollars in your pocket to boot.

What to Buy in Bulk

Some products are perfect for stockpiling. While your list will depend on your family, think items like paper towels, toilet paper, detergent, dishwashing liquid, sponges, aluminum foil, toothpaste, canned goods, frozen foods, beans, rice, sugar, flour, and nonperishables.

On the flip side, generally, you don’t want to load up on fresh produce unless you are cooking for a crowd, as your family may not be able to eat it all before it perishes.

The Cons of Buying in Bulk

For sure buying in bulk can work to your advantage, but it’s not without caveats. You have to come out of your pocket big time.

Let’s say you pay $40 for $60 worth of lotion, but what if $40 puts a bigger squeeze on your budget than buying them one at a time, weeks apart? If you use a credit card, fine — if you can pay off the entire bill when it’s due. If you incur interest charges, that will eat into your “savings.”

Keep in mind, too, that you need space to store all that stuff and a car to pile it in to take home. If either of these are issues, buying in bulk may not be ideal for you.

Know thyself. Maybe you are the person who gets bored quickly and takes to heart that variety is the spice of life. When you’ve got mega amounts of the same product, be prepared for sameness for a long stretch, which is all the more reason to purchase only what you love, as you may be using it for months.

If you’re going deep into bulk buying, you likely won’t settle only for what you can get in bulk at the grocery store but will want to shop at the warehouse stores like Costco and BJ’s. Consider the annual membership fees that are required.

Costco’s “Gold Star” membership is $60, and the “Executive” level is $120. BJ’s tiers are $55 and $115. Sam’s Club advertises membership fees of $45 and $100.

Will you frequent the store enough to make the fee worthwhile?

Mistakes to Avoid When Buying in Bulk

As with all shopping, you need to be mindful of a few things. Understand that more is more. If you have something in abundance, it’s all too easy to be less conscious of how much you’re using, meaning you could overuse.

There’s also the issue that if you’re earning a lower income and/or have considerable debt, you may not be able to come up with enough money to purchase bulk products versus their smaller and less expensive single-use versions. One big purchase could blow your weekly budget. If you spend a chunk of money to buy a mega-pack of toilet paper, can you then afford other necessities?

Also, as noted above, think about how you will store the large sizes. And when it comes to food, will you be able to use it up before it spoils? So think carefully before assuming that “bigger is better” and cheaper. Sometimes, shopping with a friend or two at warehouse stores and dividing the goods can work well. You split the costs, you all save, and everyone avoids waste.

One last note: Buying in bulk can be a fun way to save money, but don’t get so giddy grabbing great buys that you forget important things like expiration dates. Products like bleach and sunscreen may expire in 12 months or less.

The Takeaway

Buying in bulk has its advantages. Getting a good deal can keep you motivated to save money, but you’ll need to be savvy. Buy only what you need and what you can use in a timely fashion.

Like all shopping, but particularly in warehouse stores, temptation is everywhere. It’s best to know how to compare cost per unit and to have a list.

Speaking of planning, you can make your money grow faster, which can help you meet your financial goals, with SoFi. Open Checking and Savings, an online bank account that has no account fees or monthly fees, and with direct deposit, you’ll earn a competitive APY.

Better banking is here with up to 3.75% APY on SoFi Checking and Savings.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2022 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
SoFi members with direct deposit can earn up to 3.75% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 2.50% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 12/16/2022. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store
SoFi Android App, Get it on Google Play

TLS 1.2 Encrypted
Equal Housing Lender