If your summer grocery bill is anything like mine, you have seen a significant increase in the amount you have to budget for groceries. And with school starting back soon, you may not see an end in sight. But rest assured, there is a strategy that you can use to save an average of 33% on your grocery bill immediately. It doesn’t require any coupon cutting or signing up for any rewards cards. And the best part? You still get every single item on your list. So what’s the secret? Break up with those name brand items and buy private-label products instead.
What are private-label products?
These are products that are commonly referred to as “store brand” and “generic”. They are manufactured by a supplier and offered under another retailer’s brand. Some suppliers exclusively offer store-brand products, while others are brand-name manufacturers who use their facility to also create value-brand products in a non-competitive category. In some cases, a single supplier may provide products for a number of different stores.
One of my favorite places to shop for private-label products is Aldi. I am sure to find the best deals here, and sometimes can even snag a brand-name product for less then I could at other large retailers.
Why are they so much cheaper?
Private labels are able to sell their product for less because their marketing and advertising costs are significantly lower than their brand-name counterparts and they’re able to pass those savings along to us. Interestingly, even though they’re priced more cheaply, store brands usually provide the supermarket with a higher profit margin than brand names do. So, not only are generics a good deal for you—they’re also a pretty good deal for the store’s bottom line!
Is there a difference in quality?
Often time people choose not to buy generic because they feel like they are giving up quality. But by convincing yourself that all generic brands are low quality, you’re missing out on some great deals, as well as some great products.
Retailers have been doing their part to make store brands more appealing to shoppers by updating and packaging designs, and by including exciting specialty products in their store-brand lineup. Some of my favs, Target and Trader Joe’s, have managed to build extreme brand loyalty to their store-brand products.
We tend to be creatures of habit; as a result, it can be difficult to introduce change into our routines. Not every generic product you try will be a winner, but that doesn’t mean that there aren’t any generic winners out there! Instead of overhauling your entire shopping list all at once, try swapping out one or two products every time you go to the store and see what works for you. Over time, you’ll be able to keep your household running while saving some cash at the same time.