MAKING THE MOST
OF YOUR MONEY
When is a bargain really a bargain?
Written by MICHELLE ONODA
If you are like the majority of shoppers, you like the
thought of getting the most for your consumer dollars.
This is especially true when it comes to household
items and foods that are consumed daily. For many
families this can mean monthly, weekly or daily trips to grocery
markets — coupons in hand — or to discount clubs or
membership warehouse clubs that hold the allure of savings
based on purchasing in bulk.
But all of this begs the question: Is it really a bargain?
AS SHOPPERS, WE ARE CHANGING
According to a 2002 consumer poll conducted by Food
Marketing Institute and supermarketguru.com, consumers
still conduct their primary shopping at supermarkets but feel that they save money and receive better value by shopping
at warehouse clubs. It seems that we are more willing to
shop at different types of stores and take the time to seek
out value.
When 1,375 people from all 50 states were polled on
supermarketguru.com, 83 percent said they primarily shop at
supermarkets, 11 percent said they are most likely to shop at
super centers such as K-Mart or Super Wal-Mart, while 3 percent
said they primarily shop at warehouse club stores like
Sam’s or Costco.
HOW DO YOU KNOW WHEN
IT IS A BARGAIN?
Whether we use coupons or visit discount or warehouse
clubs, there are a few things to keep in mind in determining if
a “bargain” really is a bargain. If you decide to purchase an
item in bulk, establish your own price book. Savvy shoppers
suggest that you make a list of items that you use each
month, together with their prices at the various stores you frequent.
By computing to the pound, ounce or unit price, you
will quickly have at your disposal the knowledge you need to
determine if an item is truly a good buy.
OTHER FACTORS TO BE CONSIDERED
Determine what type of shopper you are. Some people are
extreme strategic shoppers. They use coupons, carefully plan
their shopping outings around store sales and capitalize on
store policies and promotions.
Others feel that shopping at local supermarkets makes
better sense for them because of the way they buy their
food. They often use coupons and store discounts and special
promotions to maximize their shopping dollars. Such a
shopper is Stephanie Nelson, who operates
CouponMom.com. This Web site provides printable
coupons, lists many free items and assists shoppers on
available discounts and promotions.
WAREHOUSE CLUBS
An article in SmartMoney, by Kelli B. Grant, states that“while supermarket prices are often 22 percent to 27 percent
higher than wholesale prices, there’s only an 8-percent
to 15-percent markup at warehouse clubs, according to
Warehouse Club Focus, a trade publication.” Grant’s article
ran Nov. 19, 2007.
Many of these warehouse clubs have yearly membership
fees. They start at about $35 per year, depending on the
warehouse club and type of membership that you purchase.
Take the time to compare the types of memberships available
and the cash-back programs, along with additional savings
perks available to club members. One warehouse club
allows you to split the cost of your yearly membership with
a friend or associate. Others allow only family members to
be included in the yearly fee and, in some cases, only those
who live in your household.
REASONS TO BUY AT THE CLUBS
Aside from the fact that you can buy many items, including
paper goods, in bulk at possibly impressive savings,
SmartMoney lists specific areas to consider:
STAPLES
Staples such as milk, eggs and butter are products
where the savings can be from 10 percent to 20 percent, according to SmartMoney. In doing
my own market research, I found that
the cost of milk, eggs and butter
was indeed less expensive than at a
local supermarket.
However, one local supermarket was
running a special promotion on a gallon
of milk that was one-third the cost of
milk at the two warehouse club stores.
This price was available only when you
made an additional purchase of another
product. This may not be an issue if you
were already going to purchase the
additional item.
WINE, BEER AND LIQUOR
If you are looking to save on wine,
beer and liquor, SmartMoney says that
you could be looking at a savings of up
to 30 percent. In my own survey, I found
this to be true. Not only were you able
to buy in larger quantities, but the perunit
cost was much less than that of
local establishments.
In some cases, the cost of certain
liquor items exceeded the 30-percent
savings.
GASOLINE
While many of us are feeling the
pressure of higher gasoline prices at
the pump, warehouse clubs can provide
some relief. The average savings
at warehouse clubs can be approximately
5 cents to 10 cents per gallon.
You may want to visit a price-comparison
site like GasBuddy.com or
GasPriceWatch.com to make sure you
are getting the best deal.
PRESCRIPTION DRUGS
Prescription drugs can be very
expensive, and this is where warehouse
clubs can be of assistance. Because of
federal law, you don’t need a club membership
to access the pharmacy counter.
Just bring in your prescription, and you
may find the savings can be as much as
50 percent. This is according to Gabriel
Levitt, vice president of research for
PharmacyChecker.com, which rates
online pharmacies.
SUMMING IT UP
Whether you are a supermarket or
discount store shopper or a warehouse
club devotee, it pays to be informed. If
you take the time to examine your own
spending patterns and the items that
you purchase regularly, you can save
hundreds if not thousands of dollars
over time. It’s your money, so make the
most of it.
