Do you pre-buy/buy in bulk, or buy as you need it?

[Anonymous]

I buy a $60 product that lasts me about 6 months. I just bought it 2 months ago, so I've got at least a 4 month supply still. It's on sale now, 2 for $88, so a $16 discount each. It will not expire, so it will last me another year and save $32 in the long run. I've been using this product for years, so I'm sure I will continue using it. My inclination would be to buy it. This product rarely goes on sale, and in the past 4 years, I can't remember ever seeing it for less than $55. My husband says it's silly to buy now, because I don't need it for so long, and that $32 over the next 1.5 years doesn't mean anything.

I'm a consummate bargain shopper, so it's killing me not to get this now. I wondered what DCUM's money savvy people have to say? Would you buy now at the cheaper price, or as you need it at a more expensive price?

[Anonymous]

If it's those ginormous bottles of Nexxus shampoo and conditioner, my DH just hates having to store them while our storage space is very tight. So while it makes sense dollar for dollar, sometimes you have to just wait for the next deal. Lest you want to become a reality show.

[Anonymous]

It depends a lot on how bulky things are. We have a small house, so I value space more than saving a few dollars in many cases. So, for example, I would never buy huge cases of paper towels or something like that because I have nowhere to store them. I don't tend to buy too many really small things either, because I'll lose them by the time I need them.

But sometimes we do stock up on stuff if it's on sale-for example my husband's allergy medicine is compact, so if it's on sale and we can combine it with a %off coupon we get sometimes we'll buy a few boxes (have to be careful of the expiration dates of course).

[Anonymous]

My opinion is that most people are a little too eager to buy in bulk. Often, you don't get as good of a price as you think. Even if you do, if you end up not using any of it, you lose the savings. And if the product spoils or is defective, you lose the savings. And, if it takes you forever to use up, you lost income by having that money tied up in a bulk product rather than in an investment vehicle.

Look at it this way: The single largest reason Toyota became the thirteenth largest company in the world is because it was the first automotive maker NOT to buy in bulk; it switched to just-in-time supply and eventually forced all of its competitors to make the switch as well.

Obviously there are exceptions to the rule where the volume discount is huge. My shampoo costs something like 12 dollars for a microscopic bottle and 18 dollars for an everlasting tub, for example, so its probably worth it in that instance. But its easy to go too far.

[Anonymous]

You need to work out your own discount rate. Your discount rate tells you what tomorrow's money is worth to you today.

Your discount rate will depend on a number of factors - but mainly it is about what return you are getting on your investments or what you are paying on your debts.

Suppose you have hundreds of thousands of dollars sitting in a savings account earning 1%. Then your discount rate will be very low, close to 1%. Given a choice between $100 today and $101 in a year's time, you would be indifferent.

Suppose you have set up a new business which has great prospects but you are putting everything on credit cards that charge 20 percent interest. Your discount rate will be 20 percent or more. Given a choice between $100 today and $119 in a year's time, you would choose the $100 today.

Suppose you consume this product on average in a year's time. Your discount rate would have to be very high - something like 27 percent - for this not to be a good deal.

In other words, given current interest rates, you should almost certainly buy. Unless you are going to die tomorrow.

[Anonymous]

We do for diapers, wipes, papers products, detergents, peanut butter, rice, toothbrushes and probably other non-expiring things.

[Anonymous]

Then there's the time we noticed evidence that mice were gnawing at the corners and we threw away the entire bulk savings.

[Anonymous]

I gave away several cases of pull ups because I didn't know my kid was gonna skip pull ups. That was an expensive lesson.

[Anonymous]

Anonymous wrote: I gave away several cases of pull ups because I didn't know my kid was gonna skip pull ups. That was an expensive lesson.

OP here, thanks all, for the thoughts.

It is the large shampoo. lol Which is part of the reason he's probably against it, because he can't believe I pay that much for shampoo anyway. Which is another thread.

My thriftiness also burned us on pull-ups. I bought the largest pack, because so much cheaper per diaper. :/ My son skipped them and the only 2 we used were the ones that went back and forth to preschool in his backpack. Fortunately, it was only one jumbo pack, not cases!

thanks again!

[Anonymous]

Anonymous wrote:You need to work out your own discount rate. Your discount rate tells you what tomorrow's money is worth to you today.

Your discount rate will depend on a number of factors - but mainly it is about what return you are getting on your investments or what you are paying on your debts.

Suppose you have hundreds of thousands of dollars sitting in a savings account earning 1%. Then your discount rate will be very low, close to 1%. Given a choice between $100 today and $101 in a year's time, you would be indifferent.

Suppose you have set up a new business which has great prospects but you are putting everything on credit cards that charge 20 percent interest. Your discount rate will be 20 percent or more. Given a choice between $100 today and $119 in a year's time, you would choose the $100 today.

Suppose you consume this product on average in a year's time. Your discount rate would have to be very high - something like 27 percent - for this not to be a good deal.

In other words, given current interest rates, you should almost certainly buy. Unless you are going to die tomorrow.

Oh, and this was DH's argument (jokingly). He said "why would I need color treated hair sulfate free $60 shampoo when I just use $3 bodywash?".

Thank you for this breakdown, though!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:You need to work out your own discount rate. Your discount rate tells you what tomorrow's money is worth to you today.

Your discount rate will depend on a number of factors - but mainly it is about what return you are getting on your investments or what you are paying on your debts.

Suppose you have hundreds of thousands of dollars sitting in a savings account earning 1%. Then your discount rate will be very low, close to 1%. Given a choice between $100 today and $101 in a year's time, you would be indifferent.

Suppose you have set up a new business which has great prospects but you are putting everything on credit cards that charge 20 percent interest. Your discount rate will be 20 percent or more. Given a choice between $100 today and $119 in a year's time, you would choose the $100 today.

Suppose you consume this product on average in a year's time. Your discount rate would have to be very high - something like 27 percent - for this not to be a good deal.

In other words, given current interest rates, you should almost certainly buy. Unless you are going to die tomorrow.

Oh, and this was DH's argument (jokingly). He said "why would I need color treated hair sulfate free $60 shampoo when I just use $3 bodywash?".

Thank you for this breakdown, though!!

Which shampoo and where is the sale? I use Jonathan Masters Organics (sulfate free) but would switch if there's something just as good and easier to find!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You need to work out your own discount rate. Your discount rate tells you what tomorrow's money is worth to you today.

Your discount rate will depend on a number of factors - but mainly it is about what return you are getting on your investments or what you are paying on your debts.

Suppose you have hundreds of thousands of dollars sitting in a savings account earning 1%. Then your discount rate will be very low, close to 1%. Given a choice between $100 today and $101 in a year's time, you would be indifferent.

Suppose you have set up a new business which has great prospects but you are putting everything on credit cards that charge 20 percent interest. Your discount rate will be 20 percent or more. Given a choice between $100 today and $119 in a year's time, you would choose the $100 today.

Suppose you consume this product on average in a year's time. Your discount rate would have to be very high - something like 27 percent - for this not to be a good deal.

In other words, given current interest rates, you should almost certainly buy. Unless you are going to die tomorrow.

Oh, and this was DH's argument (jokingly). He said "why would I need color treated hair sulfate free $60 shampoo when I just use $3 bodywash?".

Thank you for this breakdown, though!!

Which shampoo and where is the sale? I use Jonathan Masters Organics (sulfate free) but would switch if there's something just as good and easier to find!

Pureology litres are 2/$88 at Regis through end of January! They usually hover around $60 at Ulta and the like. I stopped buying from Amazon because the "it's fake" reviews are too high for the risk.

[Anonymous]

We have hoarders in our family. We buy things as we need them. If toilet paper is on sale I may buy an extra package or two, and I just bought one extra bottle of laundry detergent on sale, but that is as far as we take it. Having too much stuff around makes me live in fear of turning into someone who has whole rooms in her house that are not accessible because of the amount of things in them. I hate clutter!

[Anonymous]

I don't buy in bulk because they are constantly making new and better products so I don't want to be locked in for years.

[Anonymous]

That's ridiculous for shampoo. Seriously?