Groceries - The
Check Out Check Up
The Dollar Stretcher
by Gary Foreman
Dear Dollar Stretcher,
My family is really struggling with our budget. We are a family of five
spending approximately $500 per month on groceries and household items.
Do you think we could do better? I use coupons, buy only generic and sale
items at the local grocery store. What else can I do?! Would I save
more money or get more for my money if I shopped at the big warehouses like Priceclub?
--Pam
According to the U.S. Statistical Abstract the average large family (five or more)
spent $405 per month on food eaten at home. Pam and her family probably are a
bit on the high side. So what can she do to reduce the amount she contributes
to her local grocery store?
The first thing to consider is the non-food items that end up our grocery carts.
Most of us are in the habit of picking up cleaning supplies and paper products
when we grocery shop. And that's a good way to boost your bill.
At your grocer you'll find shelf after shelf of specialty cleaning products. Check
the ingredients. They're all pretty similar. Most cleaners contain a combination
of ammonia, vinegar, baking soda, bleach and a generous helping of good old-fashioned
water. They also add a fragrance so that things smell clean after you've done
your work.
You can save some money by making your own cleaners. Recipes are available in
books, magazines and on the web. Most are simple and just as effective as what
you'd buy in the store. If you really don't want to mix your own, then at least
locate a janitorial supply store. Most will sell to the public. They carry industrial
strength and concentrated cleaners. You won't get pretty packaging, but you will
get more cleaner per buck.
Now on to the food in Pam's grocery cart. Next time you return from the grocery
store take a look at what you bought. Pay specific attention to 'convenience'
items.
You won't find this definition in Webster's Dictionary, but it's the one that
the food conglomerates use. When they call something a 'convenience' food, it
means that they're going to charge big bucks and the consumer won't complain.
In fact, we'll thank them for saving us some time!
Examine your purchases. How much of your money is really buying something that
you're going to put in your mouth and swallow? And how much is going to packaging,
individual serving sizes and 'convenience'? I don't
ever recall seeing convenience on a nutrition chart!
If you want a shock compare the price per pound of a whole ham and the sliced
ham at the deli counter. Sure, for some people being able to buy just a few slices
justifies the higher price. But a little thought here could open up a whole new
way to look at shopping.
Pam mentions that she's using coupons. Depending on where you live coupons may
be helpful. In some areas stores still double coupons or allow you to use both
a manufacturer's and a store coupon on the same item. That can make a big difference
and is well worth the time spent.
But, even without doubled savings, coupons can help. Some families insist on nationally
advertised brands. Coupons can reduce the name brand cost to the price of the
generic equivalent.
Warehouse clubs can be a help, too, but you need to be careful in how you use
them. First, and this is obvious, don't buy food that you're not going to use.
Buying more than your family needs is wasteful no matter how cheap the item is.
We almost instinctively think that bigger is better. That's not always true.
Secondly, do not assume that buying a large size will reduce your per unit cost.
Sometimes it's true and sometimes it isn't. Manufacturers know that we assume
that the 'large economy size' is the best value. And sometimes they take advantage
of that. Always compare the per unit costs. Not only between the large and small
package sizes, but between your local grocer and the big warehouse stores.
Finally, Pam can take advantage of something that no professional buyer would
be without. That's a price book. When a buyer gets ready to place an order they
know when they've bought in the past, who they purchased from and how much they
paid. That information is priceless.
Pam doesn't need a fancy system to take advantage of the same information. A simple
three-ring binder will do. Use one page for each item that you buy on a regular
basis. As you shop compare the prices you see to the appropriate page in your
price book. If the price you find is low, add a new line showing the date, store
and unit price. And stock up on the item. You've found a bargain.
But, often you'll find an item with a big 'sale' sign that's still more expensive
than the low prices in your book. That's the time to buy only enough for current
needs. It's not uncommon for people to save up to 20% on their grocery bills by
using a price book.
It sounds as if Pam is already starting to take control of her food spending.
Here's to healthy diet and a healthy budget for her family.
Gary Foreman is a former purchasing manager who currently edits The Dollar Stretcher website http://www.stretcher.com/save.htm You'll find hundreds of free articles to stretch your day and your budget.