Mark Cuban: Why Buying in Bulk Is One of the Best Investments You Can Make
Self-made entrepreneur Mark Cuban is a big fan of shopping in bulk. In an interview with Vanity Fair, the “Shark Tank” star said buying everyday necessities in bulk or on sale is one of his nine rules for getting rich.
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Buying in bulk, according to Cuban, has an immediate return on your money. Here’s how it works.
Buying in Bulk Puts Savings in Your Pocket
The next time you’re at the store and see a major sale on consumables you use regularly — like laundry detergent, toilet paper or trash bags — stock up. Ideally, your stockpile should last for several months if not years.
Cuban used the example of spotting toothpaste on sale for 50% off. In this situation, he recommends buying two years’ worth of toothpaste.
Why? Toothpaste is a consumable you, and everyone else in your household, uses every day. Shopping for it in bulk and while it’s on sale means you’ll avoid paying a heftier price later on when the toothpaste goes up. The extra savings, Cuban said, goes back into your pocket.
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Bulk Buying as a ‘Better’ Return on Investment
Does it seem excessive to buy that much toothpaste, even if you do receive extra savings? Rather than think about all of the toothpaste you’ll need to put into storage at your home, consider its return on investment.
Cuban acknowledged in an interview with CNBC that it’s difficult to make a return on regular investments. If you see a huge sale on consumables you frequently use, whether it’s toothpaste or something else, buying these items in bulk does provide an immediate return on your money.
“The money you save by investing in bulk will provide a better return on investment than any investment vehicle on the planet,” Cuban said in an email correspondence with NPR.
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