Tuesday, January 11, 2011

Buy more to save more

I always see this in many advertisements in the newspapers and internet and on TV. It is simply obvious that the economies of scale are at work here. The more you buy of the same stuff the less money you have to pay (unless you are in the retail store. That is why the wholesale clubs are so popular that you can buy items in bulk and pay less per item of it. But the retail chains when they advertise this are still selling the stuff way above their wholesale price as they order hundreds and thousands of the same items to put in their hundreds of stores. When I see people sometimes asking how the power sellers on auctions sites can sell so cheap, it is just that they buy the items in bulk and sometimes in closeouts.

But if don’t want to buy two or more items, then you are at a loss since you would not be saving much money because the individual items cost more than bulk items. So the retailers sometimes force you to buy more stuff in order to achieve the savings but for you if you don’t need it, you would let it go to waste and hence you waste more money that way. So if you need only item, try to buy that one and save then getting two of the same thing which you don’t need.

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