Here is one way that the downturn in the economy may be good for those of us living frugally, although some caution is still advised. Grocery stores are having to come up with new ways to be creative when selling their food, and they are quick to respond to anything that will sell product.
One of the results of people tightening their belts is the fact that most shoppers, even ones with higher income, are now buying generic store brands instead of name brand. This applies to food and other household goods, such as laundry detergent. As bread prices move to $3 a loaf, shoppers are willing to try a generic brand for half the cost.
When money is stable, people tend to continue to buy whatever it was they bought last week or last month. But, when there is a shift in the amount of disposable income or a perception that there are hard times ahead, customers start looking for ways to save. While we can do a few things things to cut down on the amount of gas we use by reducing our driving, it is hard to reduce the amount of food we need.
Enter the generics.
Stores make more of a profit on generics than they do selling name brand products. And the current economy has been a sort of mini boon to these products. Stores are responding with fancier recipes, fancier labels and packaging and even some marketing. No more do you see “Giant Pizza Sauce” or “Kroger Peas. These days, you will find “Private Selection Vodka Pasta Sauce” for example. Many stores are offering gourmet and organic generic foods. There is a lot more selection. Stores are even offering items such as store brand steak and pizza.
So have the prices for generics gone up? Like the prices for food everywhere they have. Look for sales on generics, which is becoming increasingly common, and select your generics carefully. Many stores now have two levels of generic brands, a premium label and a value label. Figure out which is which and buy accordingly. As stores devote more space and marketing to their store brand foods, some of these foods may rise in price to become similar to name brand items.
Since you generally can’t buy generic items with coupons, always do a cost comparison with the name brands by unit price. Sometimes with a coupon and/or a sale, the name brand costs less.
Happy Shopping!
Click here for more articles by Mary Ann Romans.
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