Find » Business & Finance » Marketing » Bulk Packaging Doesn't Always Guara...

Bulk Packaging Doesn't Always Guarantee Cheaper Prices

By Frugal Dad, published Jan 28, 2008
Published Content: 79  Total Views: 85,110  Favorited By: 39 CPs
Embed:  
Rating: 4.3 of 5
Saturdays in our household are officially designated as "Laundry Catch-up Day." A day filled with stripping beds of their linens, separating lights and darks, and folding a seemingly endless pile of clean clothes. In preparation for the weekly event I ventured out to Target yesterday looking to buy a few bulk laundry items in Target's "wholesale" area - the only area in the store you'll find a frugal shopper looking for practical buys. I've long joked with my wife that the only thing practical in a Target store is the shopping cart. In Target's defense, they do occasionally run some good specials on cleaning supplies and paper products.

Bigger packages don't necessarily mean cheaper price tags. Since we were kids we've been taught that bigger packages are a better value. The popularity of wholesale clubs such as Sams Club and Costco has helped to further this concept. While warehouse clubs do offer some good deals, not everything in the store is cheaper than its discount store equivalent. Even stores such as Target and Walmart have started reserving shelf space for bulk items where you will see double packs of cereal, juices and paper products. However, just because things are packaged in bigger containers doesn't necessarily mean it is cheaper.

To compare prices of products in different sizes, calculate the per unit or per use cost of each size. Marketing gurus are a smart bunch. You will rarely find a product in two sizes where the larger size represents exactly twice as much as its smaller counterpart. If this were the case, consumers could simply double the price of the smaller item and decide if the larger price tag was really a better buy. Product sizing is typically tiered in thirds, making math more difficult on the fly. However, armed with a calculator (or even a cell phone, which usually offers a calculator utility), a frugal shopper can convert prices to unit costs and make an educated buying decision.

Here's a look at my fabric softener choices:
$10.99 for 120 loads - $.0916 per load
$6.84 for 90 loads - $0.076 per load

Comments
Comments 1 - 2 of 2
 
 
I remember that seniors were protesting that they couldn't use the larger sizes and shouldn't be financially penalized because of it. (Makes sense.) Now, I always look at the unit price because sometimes the smaller package is the better bargain. Nice job pointing this out to everyone!

Posted on 01/28/2008 at 6:01:14 PM

 
I notice discrepancies of this sort at the grocery store a lot. There are sales where 2 small packages whose weight = the large cost less or where the large package is on sale for the exact same price as the small. It always pays to calculate the unit price.

Posted on 01/28/2008 at 9:01:00 AM

Type in Your Comments Below - (1000 characters left)
Your name:

Submit your own content on this or any topic. Get started »
Comments 1 - 2 of 2
 
Advertisment