Economist David H. Wang told BloggingStocks Friday many factors are driving grocery prices higher, including higher ingredient costs, higher energy prices, and rising demand for food in developing countries around the world (especially China, India, Russia, Brazil, and the Middle East).
A few grocery store tips:
Wang says that while there are many savvy shoppers in the states, many others are new to shopping. Wang, who worked in a grocery for three years while in college, offered his tips on how to lower your grocery bill:
- Stick to a shopping list and shun 'impulse' buys: Wang says this is perhaps the biggest money saver. "From the moment you walk in the store, grocery stores are designed to get you to buy more items than you plan to buy," Wang said. "You are bombarded with stimuli that tempts you to spend, and it works, so stick to your list. If it's not on the list, ask yourself if you need the item, or are buying merely on impulse."
- Coupon card: Most grocery chains offer a coupon card that automatically deducts for items on sale. Sign up for one and use it. But evaluate the coupons some cash registers dispense with a sales receipt. "Ask yourself if you need it or if it is on your list," Wang said.
- Evaluate buying in bulk. "Buying larger sizes usually lowers cost per food purchased but ask yourself if you will need and use the item," Wang said. "If the item is not your list, don't buy it, as you could be succumbing to an impulse buy, which will drive your food bill up."
- Avoid eye-level items: This is a big price factor and potential money saver, Wang says. "Almost everything on a shelf at eye level represents a high-profit item, and usually has the highest price per food sold. Some items are items you need, but check for lower-priced, comparable items not at eye level," Wang said.
- Shop just after you had a full meal. This tip seems almost farcical, but it's not. "Study after study has shown that consumers buy more groceries, and often these are impulse buys, when they are hungry, than after they've had a meal," Wang said. "Never go grocery shopping on an empty stomach."
- Basic items cost less. "Most prepared foods cost more on a per pound basis. So if it is at all possible, buy food in its original form - - whole chicken, vegetables, etc.," Wang said.
- Substitution solution. "Always consider a cheaper, comparable-food substitute. If peaches are priced high, consider pears or plums," Wang said. "Growing up in China, we did this all the time, due to shortages, but Americans don't do it as much. But you can cut your grocery bill if you follow the tip."
- Generics matter. "Not all generics have the same nutritional and compositional quality, but where they do, try them, to see if you can save more money because generics almost always cost less," Wang said. "My grade school daughter likes rice chex so I asked her to try the generic brand, because it costs less. She likes it, so that's a money saver."
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Reader Comments (Page 1 of 1)
10-03-2008 @ 8:11PM
Chris O'Rourke said...
Another good tip is to find outlet stores. I switched to buying HFCS free bread at a local outlet and am saving $2.24 a loaf.
10-03-2008 @ 8:13PM
Mr. noitall said...
This is GREAT advice......for MORONS!!
If you can't figure these things out on your own, you are a moron. Also, sorry Joseph, but you are a moron too, for writing this article, because, if you can't figure these things out on your own, you probably can't read either. So you wasted your time writing this article... for people who can't read. And Mr. Wang is a moron for offering up this advice. And finally I will admit to being a moron for wasting my time reading this article, and writing a comment on it.
10-04-2008 @ 6:43AM
Mike Sanders said...
I must be a moron, too, because I found his advice to be very helpful... I am disabled and both of my parents, with whom I lived, died two years ago. It was very difficult for me, just to find the things that I needed, at first. I started out, just buying Ensure to get me by. Now, I am buying all kinds of food and I am concerned with nutrition and price, as well. The best suggestion, IMHO, was the one about switching foods and buying what's in season, or less expensive... Not only will you save money, but it's a great way to put variety in your diet, so you don't become deficient in any particular nutrient. I love to shop, now! Thank you, Mr. Wang/Mr. Lazzaro! :-)
10-04-2008 @ 4:30PM
william lindblad said...
To: noitall - not morons, just a little wet behind the ears - yet.
Advice is solid - IF - you are a completely novice shopper. IF NOT - completely useless.
Mr. Lazzaro and Mr. Wang - pay heed. Of competitive business the grocery stores are at the top of the list. If yo have a cluster of stores in your given area that are close in proximity you can save a lot by watching sales. Stocking up is only useful if you have the room and it is a high use item or sale is a great discount. Another factor is that a household food budget that is kept at practical level does not represent that high a percentage of household income - unless you have a large family.
Things that can be done by all - container/sq.ft./small space gardening. Something to learn, can be fun and will reward with fresh veggies.
Home preservation - next level. Freezing is easiest to learn. Home canning - start with water bath and work up to pressure.
For this you need some garden space/or access to a local (cheap) farm stand or market.
If you happen to have a home with a basement, you might be able to utilize a cold cellar.
With one of these a 100 lbs of spuds will keep for months. So will carrots, cabbage, yams, and a lot more.
The trick to saving on the grocery bill is knowing the ways that were in use ca. 1934 and back.
The shame of all of this is that the black population of the U.S. were the grand masters. This year I helped a black man who admired my little garden start one too. He has a few bunnies and(a good job), but everything helps. A great deal of heritage has been lost.
10-04-2008 @ 9:28PM
Mr. noitall said...
O.K., William, maybe I crossed the line once again when I used the word moron, but I get alittle frustrated when I read an article on a financial blog that just states the most basic and obvious things about food shopping. How many people can benefit from this article? Maybe a guy like Mike, but come on Mike, you started out by just buying Ensure to get by? What were you consuming before you were on your own? Just Ensure? I can't believe you didn't eat any real food during your life time. Were you totally isolated? You never ate chicken, beef, fish, pork, vegetables, or fruits? You never watched T.V. and saw all the adds, or a cooking show? You never heard of a super market?
Also it seems as if you did figure most of these things out on your own, so I don't think you are a moron, maybe just a novice, like William said.
Anyway, since BloggingStocks is now giving food shopping advice to morons & novices, let me offer some advice too.
I would suggest that you check out your local fruit & vegetable store or look for a farmer's market that is in your area. I've found that the small specialty store that sells fruits & vegetables often has much lower prices on these items (namely, fruits & vegetables), most likely you won't find any bargains on meats and canned goods there. And listen to Mr. Linblad's advice, check those fliers you get in the mail and compare prices between stores. If you see a really good price this week on a product that you can freeze and use next week, than buy extra now and put it in your freezer. Also, maybe you should plan to do your shopping on your way home from work, if you are going to pass by the supermarket anyway, (that's a good idea, right?), you will save on gas. And don't be fooled by some of those so-called sales, look out for the "buy one, get one free" sale, some-times it's a good deal, but often the store will jack the regular price up, then call it a "buy one get one free" sale, if you fall this gimmick, you might end up paying more than you would for an item during this weekly "sale" then you would when there is no sale at all. Sorry to name names, but A&P does this all the time. O.K., I hope some of my advice helps a few out there.