jfowler1, that's all well and good for using online vendors for domestic grain... BUT, I paid just under $35 (delivered) for a 55# sack of UK 2 Row (Bairds) via the group grain buy a couple of months back. Store it reasonably well, and it easily lasts a year. Since I have a truck, and the delivery location wasn't all that far from where I live (less than a 30 minute drive), that wasn't an issue either. That SAME grain type, from the LHBS, and online sources (where I've sourced it) costs $80...
In the immortal words of Revvy....
"Slams head against wall."
Let me break this down for you.
If your LHBS sells a sack of UK Pale for $80; awesome. They are providing an availibility of goods and a service, so they can sell for a premium. Read my post here if you need to know why the LHBS is justified in charging that price.
https://www.homebrewtalk.com/f12/direct-grain-purchase-interesting-correspondance-236070/index4.html
If the guy running the group buy runs off with your $35, and brewday arrives, you will need to go the the LHBS and pay $80 for the sack of grain. You will be paying $1.60 per pound, plus driving time, gas costs, tax, whatever.
Lets look at BMW for UK Pale.
http://www.brewmasterswarehouse.com/product/0101465/crisp-maris-otter
85.25 for a 55 lb sack. Factor in the 10% discount, ($74.02) add $7 shipping, and it is 81.02 for the sack, delivered to your door. That is $1.47 per pound.
But keep in mind, you don't have to be buying 55 lbs of grain at a time to get this price! And I do not care where you live, Fedex will find you everytime. There is no need to buy and hoard grain, so the, "I don't live near a LHBS so I need to get 50 lbs when I can" arguement is toasted. It is a global economy - the pony express is dead. Don't sweat geography. Also, compared to your LHBS, it is cheaper per lb buying from BMW, no matter how much you buy. You don't need to buy a sack to see the return. This is the hang-up with buying bulk on line, most suppliers are happy to sell grains/lb at a bulk price, but the discount is immidiately offset by the cost to ship. BMW recognizes this dilemma, so they just offer a fair price across the board, no matter how much grain you need. Why advertise a price of $35 / sack, if it costs an additional $50 to ship it. And don't tell me it is for will call customers - that would be a drop in the bucket compared to the number of online customers who visit their site.
Now, Golddiggie, you are able to get in on a local bulk buy, and you can get the same UK pale malt you would have had to pay BMW or your LHBS ~1.50/lb for, you buy for $35 / 55 lb sack, or $.63 / lb.
That is a savings of $.84 cents per pound! Awesome. In a 5 gallon batch, requiring around 10 lbs of base malt, you saved $8.40. That is a whopping $.17 / beer in savings.
However, you are picking up your grain in a truck that probably gets around 18 mpg, with a 30 minute drive and gas at $4 / gallon. You are going to sit there and vacuum seal 55 lbs of bulk grain down into 5 lb bags. How long will that take? Do you have a vacuum sealer or is that an inventment that will go hand in hand with your 55 lb sack? Now you are storing it in your buddy's basement. Are we driving back and forth to your brew buddy's house as well? Again, $4/ gallon in gas, and investment of time. And worst of all, you have to deal with the hassel of getting involved in a group buy. No thanks.
My point here is that there is really a lot of (what is referred to in economics) opportunity cost. You have to see beyond the sticker prices to realize all of the other costs you are incurring by buying in bulk.
IMO, gas, time, stress, up front investment, less-fresh ingredients, - still have more cost to me than is justified in saving $.17 on a glass of beer. Next time you go out to eat, choose a place where you can BYO, instead of buying 2 pints of Sam Adams for $6 each at Applebee's. After one dinner you saved more money than you would on a month's worth of homebrewing and dealing with the hassel of buying in bulk.
Just think about that.
Joe