Grocery Store Pricing Infomation
Grocery stores are in the business to sell products and use sales to get people into their location instead of their competitors. The best way to save the most money when shopping is to know where the deals really are... and use the coupons!!
A few of the different ways which grocery stores make their money is by different types of marketing and marketing research. What to put on sale and what not to at any given time. What will draw in the customers and what will be their money makers. There are some grocery store secrets that most people don't realize, so I'll outline a few here.
First, a grocery store charges the distributor for prime shelf space. This is a money maker for them before the product is even sold. The highest priced shelf space is right at eye level. This prime real estate needs to be compensated for in higher produt pricing. Looking up or down in these areas are where you'll typically find better deals.
Next, pricing is adjusted in each store based upon the items that they move the best. If something is a good seller in the store, you'll probably find it higher priced than another store in your area. Maybe by only $.20, but it all adds up!
Now, where do they get this information from and how do they know when these items are typically going to be hot? By that trusty scan card that you use each time you shop to get the store specials. It's like an FBI file of your shopping habits! Every time you scan it, it keeps track of everything you buy. (Wish I could get a copy of mine!) Combine this with other shopper's information, check it against previous year's records, and they know when certain products are purchased more than others. Did you see Kraft BBQ Sauce on sale a few weeks ago for $.99/bottle? Well with BBQ season now, try to find it on sale for less. Oh wait, you might because it's a BBQ Holiday Weekend and it's a loss leader! (Item reduced to get you into their store!) Generally though, certain items are changed each week based on previous records. You might not notice it as much as there are 1000's of items in the store, but it's so simple for pricing to be changed today because of the electronics they use... just scan the handheld device and presto, all the cans still on the shelf just went up $.10 in value without even having to touch one!
The next is with the BOGO free opportunities. Or with Big Y, BOGTF (buy one, get two free). Stores aren't in the business to give away food. They are there to make money. So, when I see many of these opportunities, I know that some are good deals and some aren't.
How do you figure it out before you make that trip to the store? Well, thanks to the internet and the major grocery stores trying everything in order to become your sole place for shopping, they have started online shopping with delivery/pickup options. The best way to uncover the price of these products is to visit their online shopping site and add those items in question to your cart. You don't have to purchase anything, but it uncovers the price of the items. Some of the items that I have shook my head over are things like Hillshire Farms Sausage Links. Best sale price is 2 for $3.00. Stock up time! Within a few weeks I see them advertised for BOGO. Heading over to the online shopping site for that store, I see that they are selling for $4.69 each. Even if I bought one and got the other for free, it's still a lot more than the previous sale! Many people will say that it's fine because they have a coupon for $1.00/2 and that makes it a bargain since you can use it on the one that is free, but how about that same coupon on the 2 for $3.00 deal? Remember what your mother told you. Nobody get's anything for FREE. FREE is a great attention getter and still works after centuries of use! (The FREE items we coupon shoppers claim to get at the grocery store weren't given to you FREE, you still had to find, clip and submit a coupon!)
When they raise their prices to compensate for the free item, you are not winning here! There are some instances where they really are great deals, you just have to know their typical sale price and check out their current price to know when it's the right time.
I've heard that there are some stores that don't require you to buy two, but have reduced the price on each item individually so that you obtain the sale even if you purchase just one. Same problem, if they raise the price from average sale price to average retail price, it's going to cost you more. (Average Sale Price is the price that a store typically carries the product for, Average Retail Price is a number set by the manufacturer as what they recommend a product to sell for). You'll typically find these Average Retail Prices at the mom and pop stores as they don't have the buying power of chain stores, or you'll find them at the out of the way vacation stops. It's also the price that you find on many products that are pre-priced by the manufacturer such as chips and snacks.
Hopefully this gives you a little more information as to how pricing works at a grocery store. Knowing is understanding. The more knowledge you have, the smarter shopper you will be!
Here's the links to the grocery stores in my area that I use to price check prices on before shopping the BOGO's. You don't have to have a store that participates at the location you will shop at, find a store that is close to you to get the price estimates. I have found them to be fairly close to my local store that doesn't deliver.
Click HERE for the PeaPod site!
Click HERE for the ShopRite site!
Click HERE for the Big Y site!







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