BULK PURCHASING

It is common knowledge that bulk buying makes the bargaining power of the buyer strong. Purchases can be made at low prices. When materials are purchased on a large scale, small price reduction amounts to a big saving in the total payment. However, there are certain limitations of bulk purchasing for example when prices decline during off season, it would entail loss, there would be rise in wastages and losses, and lot of space is required. For a strong and unnecessarily a large amount of capital is locked up.