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Why It Pays to Pay Attention When You Buy in Bulk

By Len Penzo

cautionLast month I was shopping online for razor blades from my favorite shaving supply company when I noticed something that made me do a double-take. In fact, it was such a surprise that I decided to take a screen shot so I could share it with you.

Take a look at the screen shot below. I want you to pay special attention to the prices of the three razor blade packages being offered and see if you notice anything out of the ordinary. (If you’re having trouble reading it, you can click on the picture to make it bigger.)

Dorco Price Puzzle

Did you notice the same thing that I did?

We’re conditioned to believe that buying in bulk will get you the best deal, and normally that’s true — but not this time. On this particular day at least, anybody who was shopping for razor blades and looking to maximize their savings had to do the exact opposite. It’s true.

As you can see, the 24-count box was $34.80. However, careful shoppers who refused to blindly follow conventional wisdom and take the time to double-check the unit costs of all three options were richly rewarded; buying six 4-count boxes shaved $10.80 off the cost of the single 24-count box.

Believe it or not, the 4-count box had a unit price of $1.00 per cartridge, while the 24-count box’s unit price was $1.45. By the way, the 16-count box was even worse, at $1.81 per cartridge.

Needless to say, I ended up buying six of the 4-count boxes, quite pleased that my due diligence allowed me to save 31% off the bulk price — by choosing the smallest package size.

Keep that in mind the next time you shop online — or anywhere else, for that matter. When it comes to getting the best deals, buying in bulk is not always the smartest choice.

Photo Credit: Picture Perfect Pose

March 30, 2016

Comments

  1. 1

    JB says

    How are these razors? I have thought about joining one of the online shave clubs but hate the idea. I use methods to clean my razors and extend the life of them. This has helped cut the costs but not as low as the Dorco.

    • 2

      Len Penzo says

      The razors are the bomb, JB. After complaining about the high cost of razor blades on my blog several years ago, one of my readers turned me on to Dorco products. I’ve been using them ever since.

      • 3

        JB says

        I ordered the Sample kit for my wife and I yesterday. I cant believe I waited this long to find new razors. Thanks

  2. 4

    Shaun says

    I find this surprisingly common, especially at the grocery store. Thankfully, the grocery store shelf labels typically break the price down to a cost per unit or per pound or ounce figure, which makes comparisons easy. I find, for example, that at my grocery store, the family size (larger) package of Oreo cookies is always more expensive on a unit cost basis than the standard size package.

  3. 5

    Lindsay @ the Notorious D.E.B.T. says

    I’ve done some stupid things with money, but when I buy in bulk, at least I always make sure to check the unit price.

    I admit, though, I do like going to bulk membership stores. I always find that I need to be careful in the produce section – it’s tempting to me to buy giant bags of lettuce, tomatoes, and cheese (so much salad!) but with only two people in our household, it doesn’t make any sense.

  4. 6

    Ellis says

    I’ve noticed this, too. I always check all the quantities to see which is the best deal.

    The same thing when using coupons; figure the new price with the amount of the coupon subtracted, then get the per ounce price. Often the smaller package is the best price per ounce.

  5. 7

    Dave says

    Hate to break it to you, but you did exactly what the retailer wanted. You bought the same amount of razors as the largest size because you compared the two and bought the one math said was cheaper. Did you need exactly 24? If they are no perishable and steeply discounted, why not 64? If you don’t need that many, or the deal was just a an illusion due to markup of comparables, why not just buy 4 or 8?

    As a side note, people who did not notice the math would have paid much more blindly buying the 24 count. This sort of thing is a retailer’s head game that almost always results in, “Heads I win, tails you lose.”

    • 8

      Len Penzo says

      Actually, Dave, I did what I wanted to do. They’re razor blades; they’ll get used eventually — and they never go bad sitting on the shelf.

      Not everything is a conspiracy against the consumer. Here’s what I think happened: Dorco had a surplus of of the small package sizes and they wanted to get rid of them. So they did what any retailer would who was looking to move stock — they lowered the price!

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