Sure, when we buy big packs of things, the price per unit is usually lower. The manufacturer saves on packaging and shipping and some of that is passed on to the consumer. But what value do we get out of buying huge quantities? It's likely that by the time we finish consuming these, we'll be sick of the product, we'll have to discard most of it because it went bad, or it will languish in our apartments and houses, never being fully consumed.
Most places that sell in bulk require us to pay an annual membership fee. Machiavelli mentions in The Prince that people are more loyal to those who they've paid. This is true of the Costco's and Sam's Clubs. We feel obligated to go to these places to shop because we've already bought a membership. We're less exposed to other products and prices and, after some time, are less likely to make thrifty purchases.
Think of real estate... we pay x dollars per square foot to rent/mortgage, heat/cool, and maintain our residence. If we're bulk-obsessed, how much is it costing us per month to use our living space as storage? If the items have to be kept frozen or refrigerated, the costs of doing so may be significant.
If we buy bulkily, we better make sure:
- We absolutely LOVE the product and will continue to love it after months and months of use (that year supply of toilet paper?)
- We're going to use it before it goes bad (can you consume 100 hot dogs in 6 months?)
- We don't mind it taking up large amounts of space and energy to store (3 gallons of ice cream?)
- It really is cheaper than buying a smaller quantity
