A Painful Grocery Bill
The Dollar Stretcher
by Gary Foreman
gary@stretcher.com
My husband and I live alone. My mom comes over for dinner andbreakfast three days per week, and I send her lunches for worktwo nights a week. We are spending over $400 a week forgroceries. I am not buying extravagant things, and I reallydon't buy a lot of "junk" food. Where on earth are we goingwrong? Couldsomeone explain this to me? I feel like we are beyond help.What are we doing wrong?
Diane O.
Diane asks a great question. Groceries are the largestcategory of spending that we can affect without making majorlifestyle changes.
According to the U.S. Statistical Abstract for 2002, thetypical family of three spends $6,093 on food each year. Andthat includes $2,407 for food eaten away from home. So Diane'stotal is significantly above the norm.
But, as Diane points out, everyone doesn't include the samethings in their grocery bill. The Abstract shows typicalspending of $553 for "housekeeping supplies," $693 for"personal care products and services" and $399 for "tobaccoproducts." Those are not included in the $6,093.
In fact, nine items (laundry detergent, peanut butter, fabricsoftener, toilet tissue, diapers, coffee, toothpaste, papertowels, shampoo) will account for $17 billion in annual sales.With the exception of peanut butter and coffee, none of theseitems are "food" items. Other bill boosters are pet food andliquor products. And don't forget greeting cards and videorentals!
Many people buy non-food items at the grocery store. And eventhink of them as part of their grocery budget. With the riseof "supercenters," more people are combining their groceryshopping with their "other" shopping. Often it is moreconvenient to buy everything in one stop. But it's often notthe cheapest solution.
If Diane wants to control her grocery spending, it's probablynot going to be helpful to compare her bill to her neighbor's.Every family situation is different. And some families areeven able to grow or raise their own food.
A better way to reduce her bill is to study her own habits andsee where changes could save money.
Start by analyzing your receipt. What items are the mostexpensive? Work on them first. Can they be eliminatedentirely? If not, are there lower cost alternatives?
Buying junk food is not the only thing that can drive up yourgrocery bill. Your diet also makes a big difference.Vegetables and starches cost less than meat. A diet heavy inmeat will be more expensive. Likewise low calorie, low sugar,low salt foods will add heft to your bill.
For instance, according to the Organic Trade Association,consumers are willing to pay up to 25% more for organics thanthey would for non-organic equivalents. Some consumers willpay up to 100% more.
The grocery store is often not the best place to buy thosespecialty items. If you buy them often, look for more direct,lower cost alternative sources.
Another grocery bill booster is our desire for convenience.Most of us are short on time. Grocers see this as anopportunity to increase their profits.
Most are offering "everything-in-one-box" type of meals.Others are experimenting with a menu plan. A portion of thestore is stocked to allow the shopper to buy everything theyneed for a specific meal on one shelf. In either case, theconsumer pays for the convenience of not planning their ownmeals and buying pre-measured ingredients.
While you're waiting in line, take a look at your grocerycart. How much prepared food is in the cart? You may not havetime to clean carrots. But you will pay extra for the littleprepared ones. If you know the difference in price, you canmake an intelligent decision whether to save your time or yourmoney.
Finally, Diane needs to be able to compare prices so that shecan identify and stock-up when she finds a true bargain. Thebest tool for this is a price book. It's simply a listing ofitems that she commonly buys and the lowest price(s) for eachitem. That will help her identify the true sales. Shoppers whouse a price book regularly claim to save up to 20%.
Diane will probably never get her bill down to $130 per month.But if she works at it, a lower bill is possible without asignificant impact on her lifestyle.
Gary Foreman is a former purchasing manager who currentlypublishes The Dollar Stretcher website:
www.stretcher.com
andnewsletters:
www.stretcher.com/menu/subscrib.cfm
copyright2003 Dollar Stretcher, Inc. Permission granted for use on DrLaura.com
