Buying bulk is a great way to save money, right? You might want to reconsider that strategy.

Sure, those folks streaming out of big-box warehouse stores, the people toting 48 rolls of toilet paper and 5 lb. jars of mayonnaise, are convinced they’re getting a great deal.

But when it comes to procurement for your business, buying by the truckload might not be the best way to go.

Why’s that? Because it’ll cost your business more money — roughly 15% of the base price of those items, according to calculations drawn by the Journal of Accountancy.

Again, why’s that? Carrying charges.

That inventory needs to be stored, counted, protected from damage and is subject to spoilage.

In this day of just-in-time Inventory practices, maybe bulk buying doesn’t sound like such a hot idea after all.

Of course, there are exceptions to every rule.

You can run potential bulk-buys through a quick filter:

• What’s the cost difference between bulk and normal?
• How are the discounts calculated?
• Are there any further discounts — or fees — associated with the delivery?

 Do the numbers — and storage considerations — still add up to a deal? You’ll be better informed to make that decision.

Tags: base price, bulk buying, carrying charges, inventory