How To Save Money On Groceries and Food

How To Save Money On Groceries and Food

If you have read or heard any news lately, you have to have heard that many things are increasing in cost, and one of the areas having the greatest price increases is in the area of food and groceries.

The reasons for this are that in general we are in a world economy, particularly in developed nations, and subject to influences of production around the world. In many areas, there are going to be shortages in 2011 due to many varied circumstances in several different areas. Floods, droughts, labor problems, plus increased transportation costs.

Given all these deplorable, and to somewhat uncontrollable circumstances, is there actually any way to reduce grocery costs?

Believe it or not, the answer is yes... and it goes beyond the common advice of buying store brands; shopping on "2 for 1" days; using local markets when possible; not shopping when you are hungry; making a shopping list and sticking with it, etc, etc, etc. All of these are well publicized techniques and work. Searches on just about any major search engine page will bring up pages of advice; sales pages of "how to " books; articles and courses on effective couponing. Again, all effective.

The problem may be that if you are reading this you either know most of these things, or are practicing them.. and you are "topped out" on your existing bag of tricks.

You have to be wondering, "Is There Anything Else I Can Do?"

The answer is "Yes", and chances are you may not know about it. What you are going to find out can work well with many of these things, starting with menu and food purchase planning. If you want to cut back on grocery and food costs, you must make a plan. It won't just happen. Consider it nearly a full time job if your objective is to truly cut your food budget.

Let's start by looking at the major items that go into food and grocery pricing:

1) Production costs. Cost to plant, raise, grow the food. At your, there is virtually nothing you can do about this.

2) Marketing and advertising costs: Things such as printing and mailing advertisements, coupons, etc. Again, virtually nothing you can do about this except intelligently USE the Coupons.

3) In store sales costs as pertains to food: Again, nothing you can do about this. If you could bypass this step you could save.

4) Distribution costs. Ah HA! Finally.. an area you CAN do something about.

So, as we technically analyze the things that go into food pricing and costs that you see, you now see there's two areas you can have some degree of control over. Chances are, if you are an average consumer, you've never taken your analysis to this degree, and if you have, you probably have little to no idea of HOW to take the control. You are about to learn!

Now before you get your hopes up, let is state clearly that as all of these areas work on relatively slim margins, your savings are not going to be in the area of 50% or more. But if you could save 20% on your food budget, and that budget is say $300 a month, that's $60 dollars.. and for many people, that will make a huge difference in their standard of living.

So what's the secret? Quite simple: Buy direct when possible, bypassing the normal retail chain. You may bypass at least 2 food distributors (along with their transportation costs) and you will bypass you local supermarket, again saving.

You may be thinking as the author did, "Is Delmonte Foods" or "Heinz" (famous manufacturers of catsup) going to sell and ship me a couple cans or bottles? Will General Mills sell me just a box of two of cereal?

Certainly not, but there is a growing trend in the USA where certain specialty food distributors buy from these very same name brand manufacturers, consolidate and pack individual orders, and ship them directly to you.

You have just put yourself into a position to bypass retailing cost such as labor, keeping the heat and air conditioning on; saving on parking lot maintenance. You have just saved yourself the costs of operating a vehicle or a bus ticket, etc. to go shop. You have just saved other distribution costs.

This is a growing trend in the country, and now that you have the generic knowledge, and if you want to save money, the rest is up to you. Thousands of people are doing it and there's any number of firms now specializing in this market. If you are interested in savings on one of the most rapidly increasing budget cost items you face, take this knowledge and apply it. It works.