Answer:
Buying in bulk can stop being a wise spending choice;
4. when the consumer buys more than is needed
Explanation:
Buying in bulk as the name suggests is the purchase of a good in huge quantities for usage over a longer period of time. This is a strategy that is used because of the economical benefits that can be derived, examples are;
1. Reduced purchase cost: most goods that are bought in bulk usually have a discount. A discount is a reduction in the usual cost of a good when the buyer purchases the good in large quantities. Discounts usually save on long-term expenditure.
2. To handle fluctuating costs: when goods in a market have fluctuating costs due to demand and supply forces, the best option would be to purchase the good in bulk when they are relatively cheap to cover for the period when the cost will have risen.
Buying goods in bulk is a good practice when considered carefully especially when there is enough space to store the items. However, when the consumer buys more than is needed, it can lead to wastage, thus unwise spending.
