What is Bulk Purchase?
A bulk purchase is buying goods in large quantities, usually to get a lower price per unit from the supplier.
Updated
Meaning
English
A bulk purchase is buying goods in large quantities, usually to get a lower price per unit from the supplier.
Roman Urdu
Bulk purchase ka matlab hai bari miqdar me maal khareedna, aksar supplier se sasti rate par.
Also called bulk buying, bulk order, bulk.
Example
A kiryana store buys 20 cartons of cooking oil instead of 5 and gets a better rate. It also has to find shelf space and pay sooner.
Is it worth it?
A lower unit cost raises margin, but a bulk buy ties up cash, takes space and carries the risk of expiry or damage. Compare the saving with how long the stock will take to sell. Items that sell daily and do not expire are the safest to buy in bulk. Check cost on the purchase bill so your profit report uses the real cost.
In Nafaa
Nafaa purchases record quantity, cost and discount per item, update stock and keep the supplier balance. See purchase orders and GRN.
Related terms
- Purchase Order (PO)
A purchase order is a document a buyer sends a supplier listing the items, quantities and agreed prices it wants to buy.
- Landed Cost
Landed cost is the full cost of getting goods into your shop: the purchase price plus freight, loading, duties, taxes that cannot be claimed back, and other charges, less any discount.
- MOQ (Minimum Order Quantity)
MOQ, or minimum order quantity, is the smallest amount of an item that a supplier is willing to sell in one order.