Yahoo Finance 10 Grocery Store Traps That Cause You to Spend More
When it comes to budgeting, it's important to distinguish between needs and wants. Although food qualifies as a necessity, not every grocery item you buy is essential. In fact, millions of consumers end up wasting money and food when making impulse purchases at the grocery store.
According to a 2017 report from the Natural Resources Defense Council, one of the largest and most well-funded environmental activist organizations in the U.S., Americans throw away more than 400 pounds of food per person annually. That's a loss of up to $218 billion each year, costing a household of four an average of $1,800 annually.
While strategic meal planning and shopping with a list are effective ways to eliminate excess food purchases and tame your budget, you may not realize just how much influence a retailer can have on your buying decisions. Grocery stores rely on your impulse purchases to drive sales and will do whatever they can to get you to buy more than you planned.
[See: 12 Shopping Tricks to Keep You Under Budget.]
Here are 10 grocery store traps to avoid on your next shopping trip.
1. Beware of BOGOs. BOGO, which stands for "buy one, get one," often sends many shoppers into a frenzy, assuming they're scoring a free product with purchase. However, this does not always mean that you have to buy one to get one. At many stores, BOGO can normally be interchanged with 50 percent off.
"Most of the time in the Midwest area, BOGO deals ring up 50 percent off, not buy one, get one free," says Crystal Paine, founder of the bargain shopping blog MoneySavingMom.com. "The majority of people buy two items to get the sale price, but you can really often buy one item and still get it for half off." Paine suggests reading the fine print or asking a store manager to verify the deal.
2. Enticing end caps. End caps, the shelving units located at the end of each aisle, are typically strategically placed by supermarkets to promote a sale. However, experts say these perceived deals aren't always the best savings you can snag in the store.
"We all think that if there is a big display at the end of an aisle, it's on sale, but only about half the time it really is," says Phil Lempert, editor at SupermarketGuru.com, a website that features food ratings and consumer insights. Lempert advises checking the sign to find out how much you'll save and then compare the deal with similar goods from different brands in the aisles to determine the best price.
3. Product pairings. Grocery stores often place related food items next to each other, such as a high-priced cheese dip next to tortilla chips to encourage an impulse buy. So, if you were planning to buy chips and see a dip next to the bag, you may feel tempted to add it to your cart even if it wasn't on your list. What's more, these grocery pairings also deter you from comparing prices among multiple brands since they are the only option, causing you to spend more money, Paine says.
Avoid this trap by sticking to your shopping list. If you can't shake the urge to pick up a pairing, make sure to review other brand options in the product's designated aisle to make sure you're getting the best price.
4. Multiple deals. Promotions such as 10 water bottles or yogurt cups for $10 influence you to buy more than you need even though you can typically get the same sale price if you buy less. Oftentimes, shoppers assume they need to buy the total amount in the advertised promotion, which is actually rarely the case, says Jeanette Pavini, savings expert at Coupons.com.
According to Trae Bodge, smart shopping expert at TrueTrae.com, just because something is on sale doesn't mean you're getting the best price. Take a moment to look at the unit price to make sure it's worth buying more of an item than you originally intended.
Other deals, such as five for $7.50 are designed to confuse shoppers who aren't quick with math. Breaking down the price per unit may not come to you quickly when you're in a rush, but using your smartphone's calculator to figure out if the sale is worthwhile before adding it to your cart can help you save money.
5. Strategically placed products at eye level. Grocery stores have figured out how to capitalize on your shopping habits and place more expensive products at eye level since you're more inclined to grab goods that are directly in front of you. Manufacturers often pay more to be placed at this prime shelf real estate and those products will cost more than those items found on lower or higher shelves. Pavini suggests searching high and low to compare similar products located on different shelves to find the best deal.
[Read: 7 Tips to Spend Less Without Using Coupons.]
6. Fancy displays. The way products are displayed can greatly influence your shopping habits and perception of value, causing you to spend more on something you may not have otherwise purchased. Oftentimes, prices for the same or similar product will vary drastically depending on where you find it. Take cheese, for example. According to Lempert, there are three different locations in the supermarket where you can buy cheese, all at different prices. The fine cheese case, where you can find imported and decadent options such as brie and smoked gouda may be great for hosting, but they come with the highest prices and fanciest packaging. When it comes to basic cheese, stick to the dairy aisle to find the cheapest options, he says.
7. Bigger is better. Consumers assume they get a better value when they buy more, so they often grab the larger container without comparing prices. However, Lempert advises that shoppers always check the unit price of the same product in smaller containers across multiple brands to find the best deal. "In certain categories, like canned foods, the equipment and volume of smaller cans is more efficient, so you could find that the per unit price on a larger size is more expensive," he says.
8. Gift cards. Some stores may run deals offering a gift card with the purchase of a certain amount of participating products, enticing shoppers to buy more than they need to quality for the freebie. However, the deal isn't always worthwhile if you're overspending on a grocery store product you don't need. "Many times, you'll buy extra just to hit the amount you need to get the gift card that is valued less than what you would have saved by not purchasing those extra items in the first place," Paine says.
Paine explains that these deals are designed to where you can't buy the minimum amount required. For example, if you have to buy $20 worth of items priced at $4.99 each, you will end up having to purchase five to qualify, bringing your total to $24.95. This may not be worth it for a $5 gift card in the end, so do the math to determine the value.
9. Oversized shopping carts. Large shopping carts were strategically designed to trigger bigger purchases. And, the bigger the cart, the less full it looks and the more compelled you may feel to add more groceries you likely don't need. "Opting for a smaller cart, or even a basket if you only have a short list, will help you manage the number of items you're picking up and avoid buying unnecessary goods," Bodge says.
[See: 12 Ways to Be a More Mindful Spender.]
10. Cheap checkout aisle items. The checkout aisle is the grocery store's last chance to get you to shop so they fill it with cheap, tempting items that appear like a good deal. People often pick up these extra goods while waiting in line because they're bored.
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