Tips to Tame Your Grocery Bill
Regie Simmons
Want to hear a secret? Can you be trusted? No seriously, can you keep a secret? Ok, here goes. Grocery stores are a rip-off! Let me restate that. Grocery stores are a HUGE rip-off.
According to some reports, grocery stores markup items like meat by 30-60 percent to compensate for the expense of these perishable items going bad in a matter of days. Grocers operate on narrow profit margin and spoilage of perishable items cut deeply into these margins, so they pass the costs on to consumers to maintain their profit.
So, maybe you’re not surprised by any of this, but I certainly was after doing a little research and comparison shopping. I don’t consider myself a price conscience shopper; however I was tired of spending money hand-over-fist to support my diet while shopping at a chain grocery store near my home. Heck, I almost needed a second job to cover my off-season grocery bill. If your diet is anything like the average competitor’s diet, you may benefit from a couple of tips to save a few bucks. This cash might be helpful if food prices continue rising.
According to the USDA, food prices are expected to rise in 2013 in response to a drought that has decimated crops like corn, wheat, and soybeans that are used to feed livestock. As a result of these higher crop costs, farmers have reduced the number of livestock which affects the amount of meat put into the supply chain.
“The drought will have a significant impact on prices, especially beef, pork and chicken,” said Ernie Gross, an economics professor at Creighton University.
Comparison shopping
Regardless of where you buy your groceries, comparison shopping is important. It’s a tedious process but very necessary. For my comparison shopping experiment, I compared the prices at my local grocer, a big box warehouse club and a “food service” store
I examined the prices of my diet’s stapes which at the time included: beef, chicken, turkey, eggs and oats, just to name a few. The best way to do this is to reduce everything to a unit cost, so that you have an apples-to-apples comparison. To determine unit cost, divide the total cost of an item by the number of units in the package. To calculate unit cost of a dozen eggs, for example, you simply divide the cost by 12.
$2.99 / 12 = $.25 per unit
The calculation is similar for things that are sold by weight (e.g., meats, nuts, rice, oatmeal, etc.). To determine the unit cost, you just divide the cost by the total weight.
$18.81 / 6.29 lbs. = $2.99 per unit
In the end I realized I could save myself hundreds of dollars per month by shopping a little smarter and by planning ahead. As promised, here are a couple of additional tips to tame your grocery bill:
- Skip the grocery store and purchase the bulk of your items from warehouse clubs like Costco, BJs or Sam’s Clubs if the numbers make sense. The warehouse clubs typically offer favorable prices on fresh/frozen meats, fruits, rice, oats and spices. Normally, these clubs are located some distance from your home, so you want to be sure to purchase in bulk to avoid costly gas charges.
- Restaurant supply stores like GFS, Restaurant Depot and CBI have reasonable prices on items like eggs, nuts, potatoes and condiments. I have also found that these stores tend to have fresher fruits and vegetables in large quantities and at reasonable prices.
- Purchase the store brand or off-brand versus the branded products. I have been eating Quarter Oats since I was a child, but I honestly can’t tell the different between Quaker and the store brand. In some cases the store brand actually tastes better, than the more expensive brand counterparts.
- Be careful of prepared foods like pre-formed hamburgers, cubed steak, and cut fruit. Grocers have higher markups on these “prepared” foods because they have to pay an employee to prep them.
- Utilize grocery stores for “niche” items like Ezekiel bread or in a pinch if you are unable to make it to one of the aforementioned stores.
Good luck and happy shopping.
Facebook: https://www.facebook.com/Fitnupe1911
Instagram / Twitter: Fitnupe1911
Youtube: Rsimmons1911
Email: rsimmons1911@gmail.com