STOKVEL
Bulk Buying
eals D etter B Stokvels Get at Wholesalers
B
uying your groceries in bulk quantities from a local wholesaler can help you get a discounted price, which of course would translate into a tremendous saving for you. This is a valuable habit to note especially in today’s economic climate where global food pricing is sky-rocketing and severely affecting poor consumers and underprivileged households. Usually most wholesalers and food distributors trade at discounted prices to consumers purchasing in bulk quantities. This would also be a potential opportunity for groups of people who have been saving in the form of stokvels or ‘buying clubs’ to spend their money on end-of-year groceries. Marketing Director of Makro, Chris Nezar says stokvel groups are able to negotiate better pricing deals for their individual members through bulk buying at Cash and Carry wholesalers. He says stokvel members, as a group, can also negotiate a better deal with transport contractors if transport is required for the delivery of purchased groceries. Nezar says the group must consider bulk buying if they have a need for the product in bulk quantity and if there is a cost benefit from buying in bulk, “but members have to collectively agree on what they want to purchase. There is no individual choice for members.” Consumers buying at Cash and Carry wholesalers can get a wide range of fresh stock, product discount coupons and Nezar says that Makro stores have extended their shopping hours for stokvel pre-orders. He says their stores provide pre-orders for stokvels and have a secure shopping environment with electronic funds transfer facilities which are safer than cash payments. The butchery facilities at Makro also provide more options for meats than just pre-packaged. For instance you 42
www.spotongmag.co.za
can get a cut to order where the butcher can then slice the roast into chops suitable for your family dinner. Additionally, butchers can provide other services like trimming fats, slicing or grinding meat and then repackaging it to be freezer-ready at no additional charge. But he advised stokvel groups to place their orders in advance and as early as possible. Nezar says stokvels are an important and integral part of saving because they have processes that encourage group members to be disciplined about savings. “Group pressure ensures that members do not miss their monthly saving contributions,” he adds. According to the Shopper Engagement Study conducted by the Point of Purchase Advertising, shoppers are more empowered than ever before to make informed and responsible buying decisions. But surprisingly it turns out that more shoppers are utilizing instore marketing and branding cues to make an overwhelming portion of their purchasing decisions.
As a result of this finding, it’s clear that retailers and brands that fail to provide the in-store marketing and education the shopper needs, risk pushing shoppers into the arms of retailers and brands who are embracing in-store marketing. If you’re not utilizing in-store marketing to put your product on display as a wholesaler or retailer, you’re likely losing out in the battle at the shelf to get your product into a shopper’s basket. The study found that nearly one in six brands purchases are made when a display with that particular brand is present in store. Overall, a clear pattern emerged suggesting that displays in general are best targeted to a core group of loyal, female stock-up shoppers, even when she shows elements of high degree of pre-store planning in the form of list making and circular use. Belonging to a grocery stokvel group could help you to avoid unplanned shopping because you cannot buy what you want as an individual but all members must agree collectively on what to purchase.
