Stretching Your Food Dollar

Along with businesses getting you to buy more, today's economy is forcing you to spend more on inflating food items. According to an article published in Newsweek, "Food has replaced oil as the big threat to long-running global economic expansion."
We generally tend to blame the oil companies for our emptying wallets, but in reality, the average person spends about 12.8% of their total budget on food, compared to only 3.4% on fuel.

The Bureau of Labor Statistics, which tracks the Consumer Price Index, compiled a list of the top five foods that have skyrocketed in price within the past year. Unfortunately, most are staples:

• Flour, up 37%

• Eggs, up 34.8%

• Sweet peppers, up 29.2%

• Milk, up 23.1%

• Dried beans, up 21.6%

The rise in food prices can be attributed to a number of things. Bad weather, for one, has caused a number of crop failures throughout the world. Also, higher fuel costs make it more expensive to transport food. But at the root of food inflation is increasing demand. Developing countries like China and India are beginning to eat more--and healthier--food, causing supplies to lower and prices to rise.

As a result, besides more expensive grocery bills, some stores have even resorted to limiting the number of specific items a customer can buy.

There is no doubt we have transformed into a huge consumer economy--we depend on businesses to provide us with food to eat, clothes to wear, cars to get us places, and entertainment to help us have fun. Because of this, the consumer market has changed from the simple exchange of needed services to pushes, overt or not, to lure you in and keep you buying more. This, along with inflation, can cause the words "shopping" and "stress" to seem like the same thing.

Although food is one thing we can't cut out of our budgets, there are some things you can do to save your wallet from hurting too badly. To help you stretch your food dollar, here are some tips to keep in mind while you grocery shop.

Plan, Plan, Plan

Before you leave the house, know exactly why you are going shopping. This means you return to the traditional, old-fashioned way of doing things--take a shopping list with you. This is most important for grocery shopping, but it can also be smart to prepare for any type of shopping you will do.

If you have a game plan, you are less likely to give in to impulse buying. Stay focused when you get to the store. It may help if you organize your list according to the layout of the store--that way you have less time to wander and find interesting things to add to the cart.

Also, plan where you are going. This can save you a great deal of money, if you watch the sales and take advantage of them. Hundreds of dollars can be saved by consumers in sales, coupons, and rebates. It takes a little more work to save and plan, but in the end, it pays off--literally.

Carry vs. Cart the Groceries

Carts are intended for large shopping trips. They can be helpful, but they can also turn into a bottomless pit. The size of shopping carts has increased in the past few years--an easier way for you to add more to your total bill without taking a second thought. Do yourself a favor and carry your groceries on a shopping trip. Not only will you get some more exercise, but you will also end up rethinking your list, and taking out everything except the essentials.

Beware of Bulk

Bulk, although it seems common knowledge that buying more means paying less per unit, is not necessarily always the case. Marketers are aware of this mentality and will get you to pay more per unit in sets of ten rather than just buying the one box you need. It is handy to take a small calculator to the store with you, or just use the one on your cell phone. Park the cart, do the math, and save yourself some cash. Or, take a look at the price label on the shelf; some stores provide a price per unit section that can help you out.

Be a Sales Skeptic

Stores have figured out a way to help you think you have struck the gold mine--in sales that is. These tactics can come in the form of large signs, end caps, and bins to mimic similar sale items. Large signs are used to advertise sale items, but are also commonly used just to advertise. Pay attention to prices as you shop from week to week, you will notice prices stay the same but are advertised in a way to make you think they have changed.

End caps are the same way; naturally, shoppers think end caps are sale items but they are often the opposite. High margin products are placed in easy-to-see, easy-to-grab locations. So, instead of grabbing from an end cap, walk into the aisle a ways--the products there will mostly likely be much cheaper. Bins are also used to consolidate high-end products and mimic bargain bins. Just double-check prices in each of these cases. Most importantly, don't buy something that you think is a good deal unless you know it is a good deal.

Be Product Placement Savvy

Essentials, like toilet paper, are placed in the middle or back of the store. This will cause you to wander longer, and increase the chance of exposing you to more products. This is most obvious in retail stores--you have to trudge through the racks and racks of full-priced, brand-new, trendy clothing to get to the sale racks in the back. So, by the time you get there, the deals are less appealing because the clothes aren't new and fashionable, but old and discounted.

The same concept is applied on an aisle-by-aisle basis too. Expect more expensive, high-end, and non-essential products to be placed near the ends of the aisles with staples in the middle. This provides advertisers as chance to make their pitch once as you go in, and another as you go out.

Look Lower (or Higher)

Expensive products and brands are placed at eye-level. Have you ever noticed that the name brands are always easiest to find? Take time to look down, or up for that matter. Off-brands will have the same amounts and types of products, but for a fraction of the price of those that are easier to spot.

Do Not Indulge on Impulses

Impulse-oriented items are placed near the checkout stands. This is just one last stab at getting you to buy something you didn't plan on. Gum, magazines, candy, lip balm, and much more are placed not only where you will pay, but where you may end up standing for a while. Fight the temptation to just throw in another pack of gum if you don't really need it.

Be On a Mission

Being on a mission does not mean you sprint through the store--by all means, enjoy your shopping experience. However, stores know that the more times they can get you to stop, and the more time you spend in the store, the more likely you will buy more. This is the key idea behind in-store samples and demonstrations. If something looks interesting, keep moving as you decide if you really want it.

Rethink Your Spoils

Your time at the checkout allows you to reassess what you are buying. It is helpful to place an item one at a time on the counter. This will remind you what you placed in the shopping cart or basket. Then, rethink the reason for purchasing the item and determine if you really need it.

Don't be afraid to put things back

Shoppers are often embarrassed to get to the checkout stand and tell the cashier you changed your mind on a few items. Don't be afraid to ask the cashier to put something back--it's alright, that's his or her job. The store exists to serve you, the customer. You are the one spending the money, and you should never feel pressured to spend more than you would like.

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Shop the Sales and Eat at Home!

Cristy in Florida

Thank you for pointing out some easy tricks the stores like to use. We are trying to plan our meals around what is on special - AND use a coupon! We also use food storage staples that we have been rotating from the cannery. Having a calculator on hand, or a quick mind for math can verify if the large size is really the best buy per ounce. Being creative with what is already in our pantry, has led to many new ideas and fun meals. Some of our children's favorite memories are when they would ask "What's for dinner?", and I would answer, "Whatever you make!" Now they all know how to make anything they want and they really do like to cook - that saves a lot on their food budgets when they know they can eat at home much better than if they eat out.

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Elaine in Pretoria, South Africa

Thanks for the excellent tips to help us manage our purses. I want to confirm that even here in Pretoria grocers have the same ideas as in the US. One cannot shop without a shopping list, doing the maths with every item you buy, planning properly where to go and then go shopping as little as possible. We save on cooking from scratch and avoid ready-made foods at all cost. Though challenging to shop, we try to enjoy it anyway.

Thanks for the tips.

Kathleen in Hawaii

I've been using some of this ideas but will really apply the "I'm on a mission" focus. I have no problem leaving things I find are more a "want" than a "need" at the check out stand. I think it's a lot better than leaving an item on an unrelated shelf. That costs the store more man hours and the spoilage ads to the cost of food. [who hasn't seen a pkg of frozen food or meat on a shelf of can goods. This is one of my pet peeves. When I was a newly wed hamburger was 2 lbs. for a dollar. Since then he costs of pilferage, avoidable spoilage, unwarranted returns, and high cost of out sourcing our oil drilling & food production has sent food costs through the roof. Example: my husband works for Sams Club and the day after the 4th a schister brought back 3 tables and said that the tables didn't fit in the room they were using. After Super bowl games they always get the big screen tv's back as returns. I was in back of a lady who was returning an art set that came in a wooden box that was covered with paint and the tubes were almost all used up. She was returning it because her son didn't like it. Dishonesty is the largest driver of the cost of everything going up. I really appreciate your suggestion and will implement the ones I'm not already using and will spread the news. Thank you for all your efforts to serve. You have a easy and very useful site.

Great tips in this article!

Amy in Cedar Park, TX

The suggestion of making a grocery list and suiting it to the layout of the store is EXTREMELY helpful. I have been doing that for awhile now and it makes my shopping trips much easier and eliminates most back-tracking especially with kids in tow! I keep my list as a spreadsheet on my computer which makes it even easier to modify each week. Keeping our regular staples on the list helps too. A M-F list of planned meals for the week is on the same sheet so I can easily remember what I have planned to make. I also have a small wipe-off board on my fridge where I can quickly write items down as I run out and/or need to re-stock. It is divided into sections for different stores which helps a lot too. Getting into the habit was the hard part but the spreadsheet & wipe-off board have made it much easier. I don’t have lots of coupons since I just clip the ones for items I always use (+ freebies & BOGOs) but I do keep them all in a Ziploc bag so I can easily find them and add those items onto my weekly list when needed. After all of that I still paper-clip my coupons onto my list so I don’t forget to give them to the cashier. Before forming these habits I would normally make small trips to the grocery store 2-3 times a week just because I wasn’t planning ahead. One big trip is SO much easier! Also, there's nothing worse than getting home from the grocery store and then wondering what to make for dinner! Ugh! Planning meals before heading out will cut your grocery bill and save time as well as headaches. My next step is to start doing freezer meals for a month at a time…I hear that saves even more money!

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S in Arizona

I just wanted to let you know that there are also websites out there where you can get coupons for specific items you buy. My sis-in-law is a wiz at this. I have seen her walk out of the store with a basket overflowing and spending $60-70. This to me is amazing! Bashas has their own website as do most grocery stores.

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nancy in Hilo, Hawaii

I think this is a super article! I wish everyone could read it. It is really timley.