Wednesday, November 25, 2009

It is cheaper to buy your necessities in bulks

I have failed to realise in the past that it is cheaper to buy thing in bulk. I always buy thing in small amount or quantity just for the ease of carrying. But now I realise that buying in small amount or quantity usually is more expensive than you buy the item in bulk.


This is what had happened two days ago:

I was trying to find the cheapest price for 6 x 250ml packets Milo drink. So I went to various shops to find out the price and here are the findings.

In supermart N, it cost me $3.80 for 6 packets, or $0.63 per packet
In provision shop A, it costs me $3.50 for 6 packets, or $0.58 per packet
In provision shop B, it costs me $3.30 for 6 packets, or $0.55 per packet
In provision shop B, it costs me $12.50 for 24 packets, or $0.52 per packet

First thing I realise is, different shop can have very different price for the same product. What surprise me is the price in supermart N, which is very expensive as compared to other provision shop.
Second thing I realise is, I can get cheaper price if I buy thing in bulk.

My next plan is to list out all the things that can be bought in bulk so as to lower my expenses on the necessities. Lowering my expenses is part of my cash flow framework.

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