7 minute read
Win at bulk buying
from Spotong Issue 31
by 3S Media
WIN AT BULKBUYING
Make the planning process easier to ensure you get the best bulk deals - and savings too!
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It is that time of the year again when stokvels start preparing to buy their end-of-year groceries in bulk. From booking transport services to making sure that you get the bulk-buying deals that you need, there are a number of factors to deal with and careful planning must be done.
Before you choose your store or supplier, take the following factors into consideration:
Choosing your store
• Secure shopping environment
Does the store offer a secure shopping environment with electronic funds transfer facilities which are safer than cash payments?
• Stock availability
Does the store have enough stock and brands to meet your needs? It is wise to check well in advance if the store or supplier will have sufficient stock of the exact brands and products that you want. This will prevent unnecessary money being spent on brands and products that were not decided on within your stokvel group.
• Location
Is the store in a convenient and safe location? Taking into consideration transport costs, is the store or supplier far from where your goods need to be delivered?
• Pre-orders and stock picking
Is there a store assistant that helps with picking and checking your order?
Are you able to pre-order online or telephonically?
• Deliveries
Does the store offer a delivery service or can it assist you with a reliable service provider? If the store doesn’t have that option, it is advisable to only book reputable transport services to deliver your groceries. Choose someone you know or who has assisted you in the past. The transport service provider must have contactable references.
• Extended hours
Does the store offer extended hours for stokvel pre-orders?
• After-sales support
What is the store procedures and rules regarding incorrect orders, damaged stock and payment disputes? Should something go wrong, is the store willing to assist in rectifying the problem?
How much do I buy?
It is important to sit down with all stokvel members and decide how much stock of each item will be purchased. Consider the family size of each stokvel member. Buying in bulk not only saves you money but also saves you time as the items purchased will last for a long time. Keep in mind the storage facilities that each member has as well as perishable items that will be bought in bulk.
Expiry dates
Do not purchase and accept goods with expired dates or dates that will soon expire. It is best to check the expiry date on each item while you are at the store. Even better, give the responsibility of checking expiry dates on each item to all members of the stokvel group who will be assisting at the store. This is a quicker way to check for not only expired goods but for damaged packaging as well.
Storage facilities at home
Consider your storage facilities before buying groceries in bulk. Check the instructions on each product’s packaging for the proper storage requirements. Poor storage will affect the product quality and it will not last as long as you had hoped. Proper storage will ensure freshness and keeps the nutritional value of the product. Incorrect storage of products may lead to an infestation of cockroaches and rats. Stock up on sealable storage containers and plastic wrap before your products arrive at home.
Know your consumer rights
Knowledge is power and if you are not satisfied with the service from a store, speak up immediately. You have a right to high-quality goods and services. Suppliers are not allowed to vary the quality of a product or service in a discriminatory manner. All consumers should be treated equally, irrespective of gender, race, socio-economic status or their geographic locations.
ALWAYS READ THE FINE PRINT
Paying attention to the terms and conditions of financial products is crucial for the success of your stokvel
Let’s recognise the power of the age-old African community savings mechanism: the stokvel. Stokvels have been the savings “engine room” for South African communities through apartheid and into democracy, and they remain very effective today, even within the context of the country’s troubling poverty. R44-billion is saved by 820 000 stokvels in South Africa each year, and more than 11-million South Africans are currently members of stokvels. In addition, according to the National Stokvel Association of South Africa, our “stokvel market is worth more than some of South Africa’s largest businesses”.
The vibrancy of stokvels is one of the reasons why most of the major financial brands have launched specific accounts and services to meet their needs. Although the stokvel has traditionally been a cashbased community savings tool, today a whopping 41% are banked and use, at the very least, a transactional account.
“There are a lot of money management options for stokvel leaders to consider,” says Nkazi Sokhulu, co-founder and CEO at South Africa’s pioneering Credit Life Insurance brand, Yalu. “These range from opportunities to take advantage of the better interest rates paid by investment accounts to shopping discounts offered by bulk buying. There’s no question that with smart decision-making the group’s money can be made to work harder, but for this to be true there has to be a careful analysis of costs versus rewards.”
Sokhulu emphasises the importance of examining the fine print of any financial product for additional costs, including hidden monthly membership charges, along with additional line items buried in obscure terms and conditions text. “This is the golden rule for all financial products,” he says. “You can win or lose a lot in the fine print – and if you have never even read this text or understood it, there’s a good chance your collective could be losing money.”
Sokhulu explains that individual stokvel members might also be able to put away more money than they think. The key again lies in understanding fine print of financial products such as Credit Life Insurance, which members most likely pay for on their credit facilities. every month, and this money could contribute significantly to their overall savings efforts. Once people understand this, they are more likely to take the simple steps they need to in order to reduce their monthly commitments.” The easiest step is to visit yalu.co.za/calculator, which offers a seamless online take-up process that allows consumers to consolidate their different Credit Life Insurance policies and save considerably on monthly payments in the process. Users provide a few basic details and are then presented with a list of their different credit facilities, along with estimated monthly savings if they choose to switch their Credit Life Insurance to Yalu. A few more clicks and a process to cancel the existing policy is kick-started, with Yalu taking care of all the paperwork and administration. “As most stokvel members are already aware, there are only two ways to improve your financial situation: spend less, or save more,” concludes Sokhulu. “In both areas, paying attention to all the details of financial products and services can have a big impact on the individual, and therefore the group. If as a broad South African society, we improve this skill, our stokvel heritage will grow stronger than it already is.”
Yalu’s name has become synonymous with Credit Life Insurance, the least understood form of longterm insurance in the South African market. Credit Life Insurance covers borrowers’ debt in the case of retrenchment, disability or death. This type of insurance is sometimes mandatory and is generally offered by the same financial institution offering the loan. The premiums charged for such policies can vary, and as a result a lot of consumers find themselves unwittingly paying the maximum possible premium every month − creating room for savings if they were to choose a different provider. “As always, information is crucial,” explains Sokhulu. “Because many consumers aren’t aware of the details of their Credit Life Insurance policies, they’re losing out on potential savings
About Yalu:
The name “Yalu” is short for the Zulu term isiyalu - the source of a river. Yalu was born out of a passion to nourish and bring life to the world of credit life insurance. Our goal of delivering true value for money is evident in the transparency of our products, the simplicity of our process and the fairness of our pricing. Simply put, we believe in doing right by our customers. By making credit life insurance easy to understand, ensuring that you pay what is fair and rewarding you when you settle your loan, we are changing the face of credit life insurance for your benefit. The Yalu Credit Life Insurance Plan is underwritten by Old Mutual Alternative Risk Transfer Limited, a member of the Old Mutual Limited group.
