Journal Photo Illustration by Richard Boyd II
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Published: June 25, 2008
Rising food prices hit home when I noticed that Ramen noodles went from five packages for a dollar to just four packages.
About the same time, I noticed that cartons of Edy's ice cream shrank from 1.75 to 1.5 quarts, though the price didn't go down.
And, of course, I noticed that the totals at the cash register have gone up. A lot.
The U.S. Bureau of Labor Statistics reported this month in its Consumer Price Index for All Urban Consumers that seasonally adjusted food and beverage prices rose 5.2 percent from December 2007 through May, the latest period for which figures are available. Food at home (i.e. grocery-store) prices rose 6.6 percent in that period. Even just from April to May of this year, prices for food at home rose 0.3 percent. Now, reports are coming in that recent flooding in the Midwest will push up prices even more.
Price increases are across the board. There have been particularly steep increases for cereals and bakery products, which went up 15.5 percent in the past six months. Fats and oils rose 18.9 percent in the past six months, and sugars and sweets rose 6.7 percent. The smallest increases were in the categories of alcoholic beverages, up 3.2 percent in six months, and dairy products, up 2.1 percent. (Dairy had risen a whopping 20.5 percent in the previous six months, June through November 2007.)
Generally, we're trapped when food prices rise. We have to eat. But cooking at home is always cheaper than eating out or grabbing takeout.
So, I have put together a slew of shopping strategies to help you economize. Many come from personal experience. Some come from Web sites such as www.grocerysavingtips.com and www.allthingsfrugal.com. And many come from Kenneth Herbst, an assistant professor of marketing at the Babcock School of Management at Wake Forest University. Herbst calls himself a "food marketing psychologist." He spends a lot of time studying how grocery stores get people to part with their hard-earned dollars.
□ Set a cash-only budget. This involves deciding on a maximum dollar amount for a grocery trip and then taking only that amount -- no checkbook or credit card -- to the store. This may not be suitable for everyone, and it will feel like deprivation for a couple of weeks. But the grocery bills will go down.
□ Think about trying a different store. People get attached to a favorite supermarket, but may be surprised to find they like another store that is cheaper or closer to home. Make a list of 10 to 15 items you buy regularly and take it to a different store to compare prices.
□ Avoid buying nonfood items at a supermarket. Such items as shampoo, toilet paper and light bulbs often cost more than they do at other stores. (Wal-Mart is an exception, because it sells groceries and nonfood items.)
□ Decide whether coupons work for you. A lot of people swear by them, but I find they often cajole me into buying things I don't want. Often they are for new products or for prepared foods I can make myself. Worse, I sometimes forget to pull them out at the register.
Herbst does recommend coupons, especially when people can use the double or triple coupons. He mentioned a time in May when a store actually "owed" him 10 cents after using double coupons for tea bags and brown sugar. (The store didn't give him the money. They asked him to pick out something else, which they discounted by 10 cents.)
Also, such Web sites as www.thecouponclippers.com may help you find coupons for items you usually buy. But avoid Web sites that barrage you with offers from advertisers.
My advice is to try coupons if you want, but keep a written record of how much you save and how much you enjoy what you buy with them. Also, don't assume that having a coupon means that you'll get the best deal. It's possible that other brands will be cheaper than the coupon item, even when the coupon discount is figured into the cost.
□ Lists are generally a good idea. But they may be better at keeping a shopper organized than saving money. Who, after all, has the discipline to buy only what is on the list?
Herbst said his data show that people with lists spend more. But, he said, "It could be the case that people with shopping lists shop more infrequently than those shopping without them. Thus, because they are only shopping once per week, they may really fill up the pantry and refrigerator each visit to the supermarket as opposed to shopping three or four times without an organized list."
You will have to decide for yourself whether a list actually keeps you from buying more than you need.
□ Eat before you get to the store. This is old advice, but people still ignore it and end up overloading the grocery cart because everything looks so appetizing. Also, avoid going to the store when you're tired, because you'll be apt to choose items that seem easier to prepare but that cost more. Kids, too, can be a distraction to savvy shopping, especially those that beg you to buy expensive snacks and treats -- and what kid doesn't?
□ Buy food based on meals that you've planned. Don't just pick up an item you might use. This will help reduce inventory of a lot of miscellaneous odds and ends.
□ Cook from scratch when possible. Processed foods, or anything ready-to-eat or even partially prepared, is what is called a "value-added" food product. That means the manufacturer has done more work and expects to get more money for it. In other words, the cost of a frozen dinner of turkey, gravy, potatoes and green beans generally will cost more than if you make it. There are exceptions -- cookies sometimes seem cheaper to buy than make, especially if they require lots of butter and chocolate. But you'll save -- and save big -- the more you cook from scratch.
□ Make your own salad dressings and sauces.
□ If you eat cereal, add up how much you spend each week. Then look for alternatives. Consider making eggs a couple of times of week. Or maybe try unconventional breakfasts, such as dinner leftovers or sandwiches.
□ Consider eating vegetarian meals once or twice a week. Beans, eggs and tofu are good, cheap sources of protein. Even if you're not eating a vegetarian meal, such proteins are a good way to stretch an expensive meat. Eggs and sausage, for instance, make for an inexpensive dinner.
□ Soups also make a little bit of meat go far. The same goes for stir-fries. Other dishes that can stretch meat include tacos, enchiladas, pasta and meatloaf.
□ If you have leftovers, make sure they get used. If necessary, make a list of leftovers and the date they were put in the fridge.
□ When deciding what brand or even what size to buy,
look at the unit price for a quick comparison.
Sometimes the larger packages are not the better deal.
□ Avoid single-serving containers for applesauce, yogurt or chips. They are always more expensive -- ounce for ounce -- than food sold in larger containers.
□ Buy less. Most people throw away perishable food every week. If you ever throw away food that goes bad before you get around to eating it, you are buying too much. (Or you may not be as organized as you could be in keeping track of your food; see the tips on meal planning above.) Start buying less perishable food than you think you need.
□ Consider switching brands, or at least trying a different one. Often, our brand allegiance has more to do with familiarity than with taste or quality. Herbst said that store brands can be a lot cheaper than national brands, and they often taste just as good. But he did add that some stores have several tiers of store brands, some of which are not cheaper. Don't assume that a store brand is cheaper than a name brand.
□ Think twice about buying herbs and spices. They are expensive, and most people buy 12 or more kinds but use only three or four regularly. Make a list of favorites. If you do need an unusual spice or herb for a particular recipe, look in such stores as Whole Foods Market that sell them in bulk. Then buy only what you need.
□ Cut down on junk food, frozen dinners and other prepared foods. Processed foods tend to be expensive, not to mention low on nutrients. Think about cheaper, healthier snacks, such as peanut butter and crackers, or low-sugar yogurt.
□ Avoid impulse purchases. That's anything that whets your appetite while you're in the store but had not planned to buy. Herbst said that the worst (or best) place for impulse buys is in the line at the register -- staring at all the magazines, gum and candy.
But impulse purchases can happen anywhere. Often, shelves at eye level are stocked with foods designed to catch your attention. End-of-aisle displays are designed for impulse buys, too.
Herbst also said to watch out for "cross-merchandizing," when stores group two or more items that normally would not be displayed together. For example, you might have fresh strawberries on your list. But when you get to the store you see angel-food cake and whipped cream displayed next to the strawberries. You may end up buying two items more than you planned.
□ As with produce, shop seasonally. Grilling meats are often cheaper in summer, whereas large roasts, such as whole turkeys, are often cheaper in the winter.
□ If you regularly buy boneless chicken breasts, consider another, less expensive cut. Better yet, buy a whole chicken -- the cheapest way to buy chicken --and cut it up yourself.
□ If you buy a lot of lunchmeat, you might want to check the prices of ham, uncooked turkey breasts, and other large cuts in the meat case. It might be worth it to cook a large cut, slice it and then freeze it in small packages.
□ Meat eaters can save by eating more ground meat instead of steaks or other expensive cuts.
Also, look for the "reduced for quick sale" items in the meat department. These will need to be cooked or frozen right away. But they can save you several dollars a pound.
□ Visit the farmers market, where produce is often cheaper and fresher.
□ Buy in season. Produce is always cheaper when it's in season. Examples of cheaper seasonal produce include citrus in winter, asparagus in spring, tomatoes and bell peppers in summer.
□ Plant an herb and vegetable garden. It's a little late, but if you plant now you can have some fresh cucumbers, squash and other vegetables to keep you stocked from Labor Day until the first frost.
□ When stores offer a three for $10 or similar sale,
they will often give the discount price even if you don't buy three. So if you buy just what you need, you still save.
□ Herbst recommends studying supermarket ads, especially for potentially big savings like "buy-one-get-one-free" items, so you'll know exactly where to find the deals before you get to the store.
□ Such Web sites as mygrocerydeals.com also track sales at chain supermarkets and can be an easy way to find out which stores in your area have the best deals on any particular week.
□ Don't automatically buy an item on sale. Consider whether you really need it. Also, check the sale price against other brands, whether they are on sale or not.
□ Avoid bulk buying for its own sake. Instead, consider whether you really need 10 boxes of taco shells. A good rule of thumb for deciding on a bulk purchase is to decide if you can use the large quantity within three months.
□ Here's one last tip. Before you go to the cash register, carefully look through all the items in your cart. Do you really need three bags of chips? Will your family really eat two pounds of broccoli before it turns yellow?
You might just find a couple of "extras" in that cart that you don't really need. The best way to save money is to not spend it in the first place.
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