Buying or as I say exchange of spending power is a continuous and daily process with no breaks. If you live you exchange money for things you need. Ever wondered why a meal at a hotel at times is costlier than the t-shirt that is there since last one year. What makes such a robust thing so cheap and a onetime meal so expensive? Another question why a meal at a roadside restaurant is almost one third of that in the mall? The answer is simple but always forgotten; it’s the buying experience and the customer’s willingness to spend for the product/service that defines what it will cost under different scenarios.
It is important to note that demand and willingness to spend are two different concepts though interrelated but have a distinction in terms of actual need and desire to satisfy that need. Unlike olden days when the exchange happened in barter wherein superior goods meant more spending power, today it’s rather simpler with the currency facilitating the exchange process. So as a buyer we spend when we need something in exchange of currency and the exchange price is generally stable and standardised for majority of goods and services.
Ever imagined if the same products could come in a little more cheaply, what the possibility is? When you buy you don’t just pay for the product but for many other intermediaries’ services, they invest in the product and encash at the point of purchase stage wise. The biggest challenge for them is wait period for the purchase to happen. They are always happy and willing to part the profit with a buyer who can buy more quantities and thereby provide him returns early.
As an Individual buyer it is almost impossible to take benefit of such bulk buying due to many factors such as:
· Small demand size
· Limited spending power or money in hand
· Uncertainty of future
· Lack of opportunity for bulk/bundled buying (The most important one)
One of the best possible ways to undertake such purchase can be, if few friends and families decide to make purchases together however due to large market/products and various personal preferences such an approach is a very difficult proposition. Even though it is not fully possible to convert all your demands into bulk buying model but few can practically be undertaken, which are:
· New home (All Consumer durables and appliances)
· Gifts (Planned for all events over few months)
· Essential ration (Few months together)
· Stationery (Office & Kids together)
· Cloths (Family Shops together)
In present age where the credit and EMI facilities ones spending powers. Such clubbed spending is made possible and can bring in major savings. Another concept of kitty party or money committee is an excellent and most beneficial concept for such requirements.
Another method of savings in purchases is by developing quality knowledge of the product and undertaking the purchase from baseline, it will definitely compromise a little with the buying experience but can definitely drive in excellent savings for the household.
So explore the savings Vs efforts Vs financial viability factors and decide which purchase should be regulated for bulk buying, it’s an experience and fun to save money by a smart you and who knows the future entrepreneur you……