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I keep a large supply food in my house. I have professional experience of buying large quantities of food at wholesale and selling food to wholesalers as a broker. My feelings that for the normal family most products are cheaper is you watch the ads, use coupons and know how to use what you buy. You can easily buy what you use in quantity, when it is cheap at retail. You do not need a large bulk supplier and some are nefarious in their practices, especially on the internet. It does not necessarily mean because a supplier is a wholesaler that they offer products cheaper. Many wholesalers who provide shipment to restaurants, for example, offer the convenience of shipping and ease of procurement, not always the cheaper product. I see many small restaurant owners buying at local grocery markets, in bulk, when they see value.
It is also possible to approach a local retailer and bargain to buy cases; he may see a quick sale of a slow moving item or has excess store stock. You can also approach a restaurant to purchase a product for you that perhaps he gets cheaper at wholesale; it is common practice for families and friends. Just make a new friend and make an offer that cannot be refused.
It is also cheaper to eat what is less expensive at that time, and hold off buying items out of season or are too expensive at the time. If you spoil yourself to always have that particular food then you will have to pay what the market demands.
A big principle in food service is BUY TO SELL, DO NOT BUY TO STORE. The point being that there is cost of inventory in lost values for investment. Many very large food service operations, including groceries, try to sell the products before they pay the supplier. They may put the vendor on 30 day terms and will sell the product in a week or two or less. So essentially they work on the suppliers monies.
The same principle can apply to a family if you store too much which has value, you could have placed the cost of those items in a bank and received a market rate of return in interest. In addition there is a big cost for storage if you need refrigeration or especially a freezer which cost much to maintain.
I have looked at all the bulk meat sales and I can easily see that the product mix has many less expensive cuts and products that offer really no cost savings, just a perception of value to the gullible consumer. It may offer convenience but nothing more. Then you have to maintain the high cost of a freezer to maintain the products.
I am not saying that there are no bulk buying that offers value to the consumer. Much depends on the ability to use the products in a reasonable valued time frame and knowing how to use the products. In many areas, sophisticated and alert consumers can find real value at manufacturing and agricultural sources, distressed and end of lot merchandisers. Many areas have local produced items that may offer substantial savings at their site, especially for damaged items. I have my sources in the Denver area and many others can find their own good sources.
I do find that the likes of Sam's Club and Costco do offer some values but some of the products value are deceptive and just buying a large quantity does not mean it is cheaper. In addition, they offer many products in the mix that tempt one to buy more and higher priced premium items that are not necessary to a frugal lifestyle. However, a conscious shopper can see through those schemes.
Livecontent
Last edited by livecontent; 02-25-2012 at 08:03 PM..
I agree with LIVECONTENT on most of the points. I would like to add some observations.
Sams Club and Costco are generally not the best deals in any of the markets that I have lived in. They are even a worse bargain if you cannot use the quantities that they sell within a reasonable time.
Amish markets are RARELY a great deal, especially in those areas where there is an active tourist trade (i.e., Holmes Co., OH and Lancaster Co., PA). The Amish SURPLUS stores can offer some great deals as long as you realize the goods may be out of date, overruns, or otherwise, distressed merchandise. Also, much of what is sold at Amish markets are repackaged goods, NOT goods produced by the community. If you find a Amish market that is more geared toward serving the community, you can get some good deals and you can find some products (certain flours) that otherwise, you might have to go to Whole Foods for (and at a higher price).
Most of what I have learned about shopping frugally I learned from an Italian monk when I was in college. Some of these lessons include:
Buy discounted produce at a much lower price and use it immediately.
Make friends with wholesalers. They will sell you what they cannot sell to a customer.
Buying a 10# chunk of cheddar with a tad bit of mold yields 9.5# of cheese at half price.
Cooking from scratch is much cheaper than buy prepared foods.
Base your menu on what you can obtain at a good price. It is far less expensive than buying lots of special menu items.
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As for Gordon Marketplace stores, I love the place. You always know exactly what they carry. It is a great place to head to if you are preparing a church dinner or the like. If you are buying pork chops, you will always be able to get 40- 4 oz pork chops and the like.
It is NEVER the cheapest nor does it claim to be. Those stores are there for the benefit of the customers of Gordon Food Service (a major food wholesaler) who need fill-ins between deliveries. This prevents them from making additional deliveries which are VERY expensive an allows them to maintain FEWER distribution centers. They open them to the public as an additional revenue source.
I just dropped a few hundred dollars there last week. I could have done better shopping around BUT I just did not have the time to do so.
Azure Standard is an organic really "bulk" supplier out of Oregon. I've been ordering bulk supplies to be shipped to Alaska for years, a good outfit. They ship all the way to Ohio or some such, free shipping for a minimum $500. Not hard to do if you have a friend to order with.
herbalcom.com sells mainly herbs in bulk but they do have some food items you might be interested in.....like cocoa powder, sea salt and many different spices. Most of what they have is sold in one pound bags.
We buy organic Rice and organic steel cut Oats in bulk as well as organic beans. These items do not really go bad. It is significantly cheaper per pound in bulk. I believe it's better to buy these things in person from your local grocer, food co-op, distributor etc.
I make big meals with a lot of the same ingredients, would like to be able to buy these staples in bulk and save some money from little retail cans. BTW costco and sam's club are not really any cheaper, just larger quantities. Thanks!
Actually, they are cheaper. A lot cheaper. And, once you add shipping costs to large quantities, you will always pay more. That is why f you go to Sam's in and AM you will see dozens of local restauranteurs with flatbeds loaded with staples such as beans, rice, canned goods, sauces, oils and spices.
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