Thursday, March 23, 2006

Thoughts on low price grocer shopping

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I recently read a post on grocery shopping at Adventures in Money Making's blog. It's an interesting blog - I've just started reading it - you might want to check it out, too. Somehow I need to learn how to backlink - any advice out there?

My key point is that price savings while grocery shopping can be tactically achieved by price comparisons within the store, however, true low price shopping efficiency can only be achieved by shopping at a low price seller - often located within less wealthy neighborhoods. A grocer has the same carrying cost regardless of the actual cost of the item - shelf space is fairly uniform in expense once you're in a middle aisle (I'm sure experts can kick me over issues of favourable placement). Other than a few teaser items, they have narrow margins and not much ability to vary their markup over a broad variety of goods. That's why the provider for less expensive markets will usually lower your grocery bills.

Here's my post from Adventure's blog:

I take a while to shop, too.

Often because I'm comparing items and looking for the best deal.

In part we're all just learning how to do it more efficiently - I think practice is the key here.

Remember how long it took you to change the oil in a lawn mower the firs time (or at least I remember how long it took for me)?

Actually, to be truely more efficient, I think you have to question where you are shopping. Specifically, geography and venue.

There's a chain of stores out of Germany with very inexpensive private label products called Aldi - I went there while visiting a cousin once. It is amazing. Prices are about 15 - 40% less. I wrote down a number of prices and found that their average cost per unit competed directly with Costco!! However, you had more control of the volume you purchased!

See if there's an Aldi near you. The brands will be almost entirely new to you, but you'll really enjoy the savings. Also, another tip, find where the Mexican immigrants buy their groceries - especially green grocers. They really know their produce and the prices can be 50% lower.


Making Our Way

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