Companies Change Product Sizes to Reduce Costs


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Photo by ninjapoodles

Consumer Alert:  Many of your favorite brands are drastically reducing product sizes without a corresponding drop in price.  In some cases, the price has even gone up while the quantities have gone down.  This has been going on for some time, but the latest reductions in product size has been more drastic, and come at a time when consumers are already feeling the pinch of rising food and gas prices.

Last week I received an email from someone who works in the food industry (they asked to remain anonymous).  In the email they cited several examples of brands that are reducing their quantity per package:

Obviously, this is not a exhaustive list, but I wanted to share the specific examples provided so you would be more aware during your next grocery shopping trip.

What Can We Do About Rising Prices and Falling Quantities?

Not much.  But, it is a good time to remind consumers to check out unit prices when comparing various product sizes.  Often times bulk packaging is more expensive per unit than smaller counterparts.  Marketing departments are banking on the popular misconception that bulk packaging is always cheaper.  Take along a calculator during your shopping trip, or use the calculator utility on your cell phone to compute the unit costs of the product your are interested in.  Here’s a real-life example from one of my past shopping trips for laundry supplies:

  • $10.99 for 120 loads - $.0916 per load
  • $6.84 for 90 loads - $0.076 per load

The 1.5 cent difference doesn’t sound like much, but if the larger container was offered in a 90-load size at the same unit price it would cost about $8.24 - a $1.40 premium over the smaller package.  If you go through a bottle a month that adds up to nearly $17 over the course of a year.  Multiply those savings by four or five similar products and you can easily see how checking unit prices can save you a couple hundred dollars a year.

Have you noticed any of your favorite brands reducing product sizes to reduce costs?

Cherry-Pick Coupons to Maximize Savings


coupon insertsI confess–I’m not the best coupon organizer. I am good at clipping them, but bad at filing them, and even worse at remembering to use them in the store. However, I recognize the savings potential for using coupons, which is especially important in the current era of rising food prices. But, there is a danger in using coupons.

Often times we found ourselves buying things we didn’t really need just because there was a great coupon deal. We decided to focus our coupon strategy, taking advantage of store sales, coupon-doubling and eBay to maximize savings on the few items we actually used.

How it Works, a Recent Example

Our family likes adding I Can’t Believe It’s Not Butter spray to vegetables such as corn on the cob. It has zero fat, is calorie free, and is generally healthier than real butter alternatives. It is also expensive, especially in the spray bottle packaging. Our local Kroger store recently offered I Can’t Believe It’s Not Butter 2/$3.00 dollars. The $1.50 price was competitive with other stores, including Wal-Mart and another smaller, regional grocery store. The deal also included larger 16oz. tubs, and smaller double packs of 8oz. tubs.

eBay to the Rescue

Unfortunately, I didn’t have any coupons for I Can’t Believe It’s Not Butter. Luckily, there are many people out there making a small living as “coupon clippers,” selling their time to clip coupons on eBay and other coupon exchange sites. It is important to emphasize that selling coupons is technically prohibited according to the terms of use on most manufacturer coupons.  However, coupon clippers make the distinction that they are merely selling their time to clip them, not selling the coupons themselves.

A quick search on eBay shows several auctions for a lot of 10 $0.40/1 coupons for I Can’t Believe It’s Not Butter, expiring at the end of June. The buy-it-now auction price is $1.00 with $0.42 shipping. I ordered a lot of 10 coupons and they arrived a couple days later. Our local Kroger store doubles up to 3 manufacturer coupons per item per transaction up to $1.00, so we will actually save $0.80 on each product we purchase. If we buy just two products the coupons will more than pay for themselves ($1.60 in savings versus $1.42 cost). But the savings don’t stop there. I picked up three spray butters, and my wife picked up another one along with two large tubs that we will use in recipes. Total savings, $4.80 off the retail price. Take away our $1.42 cost to acquire the coupons and we saved $3.38, or roughly 37.5% off the sale price.

Check the Expiration

Notice in the explanation above we only used 6 of the 10 coupons I bought from the eBay coupon clipper. I could have gone back in for a separate transaction and purchased three more units, but based on our average length of use for each item they probably would have expired long before we could have used them up. The $0.70 spray bottles we did buy, and both tubs, will keep in our refrigerators until ready for use, but it is a good idea to check the expiration for any perishables when stockpiling in the manner I’ve described. After all, the point of being frugal is to eliminate waste from our lives, not add more to it!

Do you have a similar coupon strategy?

photo by: ninjapoodles

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Kroger Grocery Store Fuel Discount: The Most Expensive Two Dollars I’ve Ever Saved



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We have been loyal Kroger grocery store shoppers for some time, and thanks to their double-coupon deals we’ve managed to save quite a bit of money on sale items. As an added bonus, Kroger grocery stores also offer a loyalty card that allows members to receive a $0.10 per gallon discount on gasoline for every $100 you spend on groceries. For several months I refused to shop anywhere else because I was convinced this was saving us money. That line of thinking came to a screeching halt when I finally sat down to do the math, and a little comparison shopping.

My Car Can’t Hold More Gas

Gas prices are steadily climbing, but Kroger’s fuel discount only provides a flat discount off the retail price of gasoline. Since my car can’t hold any additional gasoline this means my savings are fairly well capped to $2.00 per fill up (assuming an average of about 20 gallons per fill up). During the last few shopping trips I’ve noticed significant price increases at Kroger, particularly on dairy, meats and a few packaged dried goods (crackers, cookies, etc.). I knew prices were up everywhere, but I decided to shop around.

Wal-Mart vs. Kroger

I visited a local Wal-Mart Supercenter last weekend armed with the receipt from my last trip to our Kroger grocery store. What I found confirmed my suspicions - Kroger was more expensive. Several items were significantly higher at the Kroger store - some even as much as $1.25 higher for the exact same product and size. It wouldn’t take a lot of shopping at Wal-Mart to offset the $2.00 I saved per weekly fill-up at the Kroger gas pumps. In fact, we could save quite a bit of money by moving the majority of our grocery shopping to Wal-Mart.

The Kroger fuel discount, and the Kroger Plus card, are great examples of how loyalty programs work. Companies create the perception that by sticking with them you will automatically save money. As my impromptu research has shown, that is not always the case. Be sure to shop around, and stop to do the math to figure out if saving money is costing you more than you think.

Nintendo Wii: A Lesson in Delayed Gratification


I consider myself fairly content. All of my basic needs are met, and there are very few things that I really want. I am a recovering techno-gadget guy who around the turn of the century enjoyed acquiring the latest toys such as a Walkabout pager, a Palm Pilot, and a laptop computer for home and travel use.  The only one I even remotely used was the laptop, but even it eventually wound up on an eBay auction to pay for a couple semesters worth of textbooks.

Guitar Hero III and Wii Sports Finally Convinced Me

I remember when the Nintendo Wii first came out. It was billed as an interactive game complete with flying remotes and Wii Nunchucks, I’m still not sure what those are for. At the time I was happy with my plain old XBox game system and exactly one game, NCAA Football 2007. Besides, with a full time job, a part time job, and two kids I found little time to play much of anything. And so the Xbox sits, collecting dust and becoming more and more obsolete each day.

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Image credit:
clipeuh94

As the Wii grew in popularity so did those who said it could be the next “family entertainment” device. Yeah right, I thought. They will never get kids and parents (and even grandparents) all playing the same machine. I was wrong. Today the Nintendo Wii is the center-piece of many family’s in-home entertainment. I have heard friends mention participating in Wii family bowling tournaments, burning calories punching some air with Wii boxing gloves and now you can even pluck away at a guitar playing Guitar Hero III. Nintendo Wii’s latest product offering is Wii Fit, which features a balance board and several body measuring metrics used to track your weight, BMI, etc. Playing Wii Fit games burns calories and helps to lower those statistics. Does this thing wash our cars, too?

Paralysis by Analysis

Over the next several months I read product reviews, customer ratings and played demo models of the Wii in Sam’s Club a few times (OK, more than a few times). After resisting the marketing hype for months I must now confess I am generally smitten with the Nintendo Wii, and I think our kids would have a great time with it. Perhaps we could even work it into our frugal family fun nights. A reader told me her family has Wii game nights instead of going out for food and movies and her family’s entertainment budget has dropped significantly. After all, it only takes a few visits to restaurants and movie theaters to pay for a Wii.

So Why Wait?

Worldwide shortage of Nintendo Wii units notwithstanding, I just don’t believe in rushing out and buying anything on first impulse. My grandfather has always given the advice to walk away from stores, car lots, etc. and sleep on it. Trent advocates a ten-second rule. Well, I’ve been sleeping on it for several months now.

I don’t think that’s what he meant! However, I do believe it is important to delay major purchases like a game console because it takes some discipline to save up and pay cash. We decided to open a subaccount at ING Direct labeled “Nintendo Wii” and automatically transfer $20 a paycheck, plus any extra money we scrape up, until we have enough to purchase the Wii and Guitar Hero III game. Based on current prices that means we’ll need to save around $300. At that rate it will take four or five months to be in position to buy the Wii, but that is fine with us because during that time Nintendo will probably solve some of their supply issues, and when demand slows down a bit, or when Sony or Microsoft put out a new product, Wii prices will be reduced. Sometimes it pays to move slow.

20 Money-Saving Tips for the Grocery Store


Few spending categories can kill a budget faster than food. For some families the art of frugal grocery shopping comes naturally. We have to work a little harder, but over time we have developed a few tips to help navigate the grocery aisles.

Sign up for customer loyalty programs. Larger grocery chains such as Kroger or Publix have a customer loyalty program designed to enhance repeat business. Take advantage of “member’s only” pricing by signing up for a store in your area with the best incentives (double coupons, members-only hours, savings on gasoline purchases, etc.).

Coupons are your friend. If your Sunday paper was delivered with a $10 bill attached, would you throw it away? Of course not. Well, that’s effectively what you are doing each week by not taking a few minutes to clip and organize coupons. Combined with store sales, coupons have helped us shave over 30% off our grocery bill. My wife and I have been Grocery Game subscribers for some time now, and it is a great service for helping identify those rock-bottom deals (contact me for a $1 trial offer if you are interested).

Plan meals two weeks in advance. Don’t be one of these daily grocery store shoppers who stops by on the way home from work every day to pick up tonight’s dinner. The more times you enter a store the more chances you have to forget frugality and succumb to the grocer’s marketing efforts.

Make a grocery list - and don’t leave home without it. I think the art of making a list is lost on most people because we are an impatient society. Who wants to take the time to make a list, when I can just “wing it.” Any good efficiency expert will tell you that organizing your thoughts in list form will make you more productive, and is well worth the time. A grocery list will also help you stay focused and lessen the chances of you picking up frivolous items on a whim.

Shop without the kids. Older kids can be great helpers, and shopping creates many teachable moments that parents can share with their little ones. However, toddlers are typically impatient and don’t have the stamina to make a full lap around the store. They are also bad about grabbing items and throwing them in the shopping cart, leading to a total meltdown when you have to explain that we can’t buy seven boxes of Lucky Charms to get each color of the magic decoder ring. Better to leave the kids with grandparents or a trusted babysitter.

Never shop hungry. I used to make the mistake of shopping on an empty stomach. Shopping while hungry makes everything look good and before you know it you’ve completely blown your grocery budget.

Bring a calculator. We use a cash envelope system for our household budget, so it’s important for us not to overspend and get embarrassed at the checkout. Take along a calculator to keep a running tab of your purchases. An easier method is to simply keep a tab on the back of your grocery list, rounding up items to the nearest dollar to make the math easier.

Look high and low for deals, literally. The hottest real estate on a grocery store shelf is eye-level, and is usually where the worst deals are found. Make the effort to look at lower shelves to find the best deals, and look for store-brand alternatives frequently stored along the top.

Search the end-caps. End-caps are the space at both ends of a grocery aisle where great deals can be found. We’ve discovered that end caps on a snack aisle (cookies, crackers, chips) often have the best deals because the idea is to draw shopper’s attention up the aisle. Save time and avoid walking the length of the snack aisle - the best deals are found at both ends.

Forget brand loyalty. Most of us grew up eating only one kind of peanut butter, or using only one brand of mayonnaise. If you want to save money on groceries you have to be willing to try new things. Using a coupon to get a different brand of peanut butter for half price makes sense, and I’ve learned to enjoy the taste of savings.

Store brands offer a cheaper alternative. Most people don’t realize that many manufacturers roll products off a conveyor and slap different labels on them - a national brand and a local store brand. Many generic or store products have nearly the same ingredients as their name-brand counterparts, but are much less expensive.

Compare unit costs, not list prices. Bigger packages don’t always mean cheaper prices. The calculator you brought along can help convert price to unit cost to compare which items are really cheaper. Simply divide the price by the total number of units (ounces, items, etc.) to get each package’s unit cost. Many times you will find it is cheaper to buy two smaller packages than one slightly larger. This is especially true of paper products, where stores rely on consumers believing the myth that bulk packages are cheaper.

Buy only the minimum amount you need. Many people are suckered into buying more than they really need by store’s “2 for $4″ sale prices. All this means is that the cost of each item is $2, and you can either buy one for $2, or 2 for $4. If you don’t need two items, just buy one. Some specials require a certain quantity, so be sure to check the fine print. If the pricing represents rock-bottom pricing, and you have more than one coupon, it may make sense to stock up, but don’t do it unnecessarily because the store’s signage persuaded you.

Don’t buy non-grocery items at the grocery store. Our primary store recently remodeled and included several middle aisles dedicated to plates, silverware, etc. These items are priced much higher than discount store equivalents. Resist the temptation to stray outside of grocery products.

Pick up toiletries, medicines and hygiene products at a discount store or pharmacy. Stores like CVS and Walmart typically have much better deals on toiletries and other personal care items than grocery stores. Unless you have a coupon that makes the price competitive, avoid these types of purchases at a grocery store. As an aside, Be Thrifty Like Us does a great job of reporting on deals at stores like CVS, and their “Frugal Friday” is a weekly must-read.

Look for manager’s specials in the meat department. Meat products have a “sell by” date and as that date approaches items that haven’t moved are tagged “manager’s special” or some similar designation. Many stores have a designated space for items marked manager’s specials, and other times the items are mixed in with regularly priced products. Ask the manager on duty if you need help finding special deals. If you plan to cook or freeze the meat right way you can find some great discounts on meats, which usually make up the largest percentage of our family’s grocery store budget.

Buy 2-liter soft drinks instead of cans. 2-liters represent a much better deal, even though they aren’t as convenient as canned soft drinks. If you must by canned drinks look for multi-unit specials on “fridge packs” such as a “3 for $10″ sale. A better plan would be to eliminate soft drinks from your diet altogether. Here is some inspiration if you are so motivated.

Keep eyes front in the checkout line. Candy, magazines and useless gadgets fill the sidelines of grocery store checkout lanes. These items typically represent the highest margin products for grocery stores. You are a captive audience while in line, and stores know that many of the items are bought on impulse. A couple candy bars to snack on during the ride home costs the same as a giant box of spaghetti noodles used to feed a family of four, with leftovers. Use the time more effectively to organize coupons, check your grocery list and get your loyalty card ready for scanning.

Recycle your grocery bags. Not only is this good for the environment, but many stores will offer a few cents off your grocery bill for each bag you bring in from home.

Keep an eye on the scanner. Grocery stores are notorious for incorrectly ringing up sale items. The other day I bought two loaves of a name brand white wheat bread on sale for $1.19 per loaf. The bread rang up $2.64. I notified the clerk who asked for a price check. Turns out I was right, and saved nearly $3.00 just by being observant.

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