As part of my frugal and sustainable philosophy, I often buy items in bulk. Sugar. Flour. Rice. Beans. Wheat. Popcorn. Spices. I find it convenient to have these kinds of staples on hand and like knowing that I have saved money on the purchase. Let’s take a look at a recent purchase of rice.
I like to buy the Botan “Calrose Rice”. It’s a medium grain sticky rice popular in Asia (although apparently developed in California–hence the “Cal” in Calrose).  I sometimes buy it at the Asian food store in town, but this time I happened to be at Walmart. As you can see in the photo above, the unit price per pound for the 5lb bag of rice is $1.06, and the unit price for the 25lb bag of rice is $.864.
So yes, the 25lb bag is cheaper per pound. But is that really worth it? I know a lot of folks who say “That’s such a small difference, why bother? “.
Sure, there are some situations where buying the larger size doesn’t make sense.   If you have space or monetary limitations that prevent you from buying the bigger bag, I get that.  If you won’t use the food up before it spoils, then it’s false economy to buy the larger size. Rice however just needs to be kept dry and it will last pretty much forever (Utah Cooperative Extension Service says it at least 10 years), so you don’t have to worry about it going bad.
So how much do you save? Well, the difference between the 5lb bag unit price and the 25 lb bag unit price is 19.6 cents. Let’s round up to 20 cents a pound. According to the fact sheet for the US Rice Producers, the average US consumption is 25lbs per person per year. They state that 4 lbs of that comes from beer–so let’s take that out and say 21lbs of rice per person per year in the US. Assuming the average family is 4, that’s 21lbs x 4 ppl for 84 lbs of rice a year. Using a price difference of $.20 a year that’s $16.80.
Yeah, I know, $16.80 doesn’t sound like much. But think about it–over the course of 10 years, that’s $168, over 20 years it’s $336. . . Those little savings do add up over time.
Your savings increase even more when you start doing the same thing with multiple purchases. What if you could save $15 a year (I’m pulling that number completely out of a hat) on your purchases of rice, flour, sugar, pasta and beans? That would be 5 items at a savings of $15 each a year for a total savings of $75. . .over 10 years THAT would save you $750, and over 20 $1500.  Note: If you ran the real numbers on each of those items for your area and pricing you might realize a bigger or a smaller savings–it’s just an idea to get you thinking.
It’s all just to say that little savings add up over time–so to me, buying in bulk IS worth it as long as you buy items you actually use, can store properly (I’ve shared my bulk food storage in buckets previously)Â and will use up before they spoil.
What do you think? Is buying in bulk worth it? What items do you purchase in bulk?
I buy in bulk when the unit price is lower and on things that can be used before they spoil. I think it is essential for pantry storage. I do comparison shop to get the best unit price when possible. Canned veggies that I like to have on hand, especially low sodium versions I wait until they are on sale during the Fall holiday season and I buy a case at a time since Costco and Sam’s Club typically do not carry all the varieties. I think bulk should evaluated by anyone trying to save money, as it does create a bit of savings. Plus it is reassuring to know you have certain items on hand when it is a mealtime.
I think you really have to consider your family’s eating habits!
I do have a membership to both Sams and Costco and do buy a lot in “bulk” mainly meats, milk, etc. I would never buy a 25 pound bag of rice, or a case of canned green beans, huge jar of PB, etc. I find that I do better shopping sales at our local grocer. They run tons of buy one get one free sales weekly, bringing the unit price way below what I pay at sams or costco. For instance, at Sams you can get 6 1-pound boxes of macaroni for $5.48. At our store the 1 pound boxes are BOGO all the time at $1.49 making it $4.47 for the same 6 pounds, and then I can buy smaller quantities or a variety of shapes.
It does all depend on the prices Liz. Personally I have price checked Sams a couple of times against other sources and because they tend to be all name brand things have found that store brand and sale prices do tend to top them out if you can wait.
Jenn,
Great subject. You hit everything except one extra, which is with food prices heading higher (probably) when you buy in bulk you also hedge yourself against inflation a little bit. The next time you buy the 5 lb. bag it might be $1.07 per lb., then 1.09, then 1.12, then 1.13.
So by the time you work your way through the 25 pound bag, you’ve saved more than the 20 cents per lb. that you calculate!
🙂
Trond
So true Trond–I didn’t even consider inflation (although I know it–Yankee Bill always says when I buy in bulk “well, you know it isn’t going to get any cheaper”). I highly doubt we are going to see the price of anything permanently go down or even stay level over the next few years at a minimum, especially with all the drought issues etc as well.
It’s another example of the “latte factor,” isn’t it?
Type of packaging can also impact cost. I recently bought a bag of sugar. Because I looked at all the options, I save 60 cents by buying a plastic bag of sugar rather than the usual paper sack of the same size. Price comparison is always useful!
If you have enough freezer space, you can also buy bulk at the farmer’s market. I’ll pick up a flat of strawberries in season and then flash-freeze them for year-round use. Although it might not be cheaper than the frozen one at your local grocery, the quality is superior and much cheaper than buying berries in the winter.
And for advanced bulk-purchasing, look into buying a half of a hog or quarter of a cow.
I think there can also be savings on gas when you don’t have to run out and buy a staple at the last minute because you ran out. When you are buying in bulk you are planning ahead and usually don’t get caught short. I’ve been meaning to ask you where you are buying spices now that the Cheese Trap has closed for good.
Great point Kathy! Folks seem to think that dealing with items in bulk would make life more difficult, but actually it makes things easier because you rarely run out, and when your bulk stock starts getting low you can buy more before it’s a crisis 🙂
For the spices, now that The Cheese Trap has closed (a local store for those of you not from here) I have been picking things up at The Pine Ridge Grocery in Bainbridge. But that’s sort of a haul, so I wind up waiting till I need a bunch of stuff. However The Butcher Block here in town is planning on picking up the bulk dry good items soon–which will be much more convenient!
Another benefit to buying in bulk is that you have FOOD in the house. If the fridge is empty, I can still make rice & beans for dinner & avoid hitting the drive-thru. If I get laid off, I don’t have to worry about starving, because I have my stock-pile. Definitely great for peace of mind.
Great point Catherine. I think there are a lot of benefits people don’t realize to buying in bulk.