"Saving at the Grocery Store": Making a Price Book

When I first started really working towards saving money at the grocery store, I was newly married and eager to please. I had always bought whatever I needed at the store without a thought to cost, but now that the money was ours rather than mine, I felt compelled to watch my pennies a little more closely. One way I learned to do this was by creating and keeping a price book.  

The idea behind the price book came from Jonni McCoy's book Miserly Moms: Living Well on Less in a Tough Economy. I heard Jonni speak on the Family Life Today radio program and immediately ordered her book; it is a gem that I HIGHLY recommend, especially if you are a frugal living newbie. Here is what she says:

"When I started my adventure of squeezing even more value from each dollar I spent, I thought I knew what most things cost. Someone suggested that I write prices down to see if I knew as much as I thought I did. This was the most educational activity I could ever do. Prices are not about the same everywhere" (emphasis mine)(50).

That last sentence is so true. Shopping for all your groceries at one store may be convenient, but it is not cost-effective, even considering the cost of gas driving from store to store. You have to know your prices. 

Enter the price book.

First of all, you can make a price book any number of ways: on notebook paper, in a word processing document using tables, on a spreadsheet, on index cards, etc. Find a method that works best for you.  I'm a pen & paper gal, so my first price book was in a 1-subject spiral notebook. 

What's important is what goes in the price book!   You will need the following information for your price book:

• Product
• Store names
• Retail price
• Quantity (size in ounces, pounds, etc.) {This is VERY important because package sizes vary--sometimes considerably!}
• Unit price (the price per quantity: 10¢/oz.) {You can either use your calculator or look on the shelf tag directly below each product; stores now provide this.}
• Best sales price
• Best sales unit price 

How to Make Your Own Price Book

1. Make a list of 10-15 most frequently purchased grocery items. 

*Start simple. If you shoot for 50 products, you will get burned out fast and give up. I started with 15 and gradually added 10 more, then 10 more, etc.  

*Use a small notebook that will fit in your purse.

*Leave plenty of space beside each item to fill in prices.

Sample:

1. Butter

2. Eggs

3. Flour (unbleached)

4. Yogurt

2. Write down "retail prices" for each product.

*At each store, write down the regular "retail price" for each item on your list. 

* Be sure to note the size (in ounces, pounds, etc.) and unit price (cost per ounce or per pound).  This is VERY important because packages vary in size. 

Sample:

Butter (1 lb.)

	Retail Price	Unit Price (per lb.)
Store A	$2.49	$2.49/lb.
Store B	$3.25	$3.25/lb.
Store C	$3.79	$3.79/lb.

Eggs

	Retail Price	Unit Price (per dozen)
Store A	$1.19	$1.19/doz
Store B	$1.29	$1.29/doz
Store C	$1.35	$1.35/doz

Flour (unbleached) (5 lb.)

	Retail Price (5 lb.)	Unit Price (per lb.)
Store A	$1.73	$0.35/lb.
Store B	$2.49	$0.50/lb.
Store C	$2.79	$0.56/lb.

Yogurt

	Retail Price	Unit Price (per oz.)
Store A	$1.79 (32 oz.)	$0.06/oz.
Store B	$1.88 (32 oz.)	$0.06/oz.
Store C	$2.09 (24 oz.)	$0.09/oz.

3. Write down the "best sales price" for each product at the same store. 

*To determine the "best sales price," you will need to check prices for each item on your list every week until you arrive at the grocery store's lowest price. 

*The very lowest price among all three grocery stores will be your "stock-up price," or the price at which you should buy as much as your budget and pantry, fridge, or freezer will allow.  When the product reaches this rock-bottom price, stock up!!!

*I have highlighted the "stock-up prices" for each product below.

Sample:

Butter (1 lb.)

	Retail Price	Unit Price (per lb.)	Best Sale Price	Best Sale Unit Price (per lb.)
Store A	$2.49	$2.49/lb.	$1.88	$1.88/lb.
Store B	$3.25	$3.25/lb.	$2.25	$2.25/lb.
Store C	$3.79	$3.79/lb.	$2.50	$2.50/lb.

Eggs

	Retail Price	Unit Price (per doz.)	Best Sale Price	Best Sale Unit Price (per doz.)
Store A	$1.19	$1.19/doz	$0.98	$0.98/doz.
Store B	$1.29	$1.29/doz	$1.00	$1.00/doz.
Store C	$1.35	$1.35/doz	$1.19	$1.19/doz.

Flour (unbleached) (5 lb.)

	Retail Price	Unit Price (per lb.)	Best Sale Price	Best Sale Unit Price (per lb.)
Store A	$1.73	$0.35/lb.	$1.73	$0.35/lb.
Store B	$2.49	$0.50/lb.	$1.99	$0.40/lb.
Store C	$2.79	$0.56/lb.	$2.49	$0.50/lb.

Yogurt

	Retail Price	Unit Price (per oz.)	Best Sale Price	Best Sale Unit Price (per oz.)
Store A	$1.79 (32 oz.)	$0.06/oz.	$1.79 (32 oz.)	$0.06/oz.
Store B	$1.88 (32 oz.)	$0.06/oz.	$1.66 (32 oz.)	$0.05/oz.
Store C	$2.09 (24 oz.)	$0.09/oz.	$1.69 (24 oz.)	$0.07/oz.

My goal is to try not to buy an item for more than the "stock-up price" or the "best sale price" that I've seen. This price becomes my target.


A price book--whatever it looks like--should help you accomplish your goal of saving money at the grocery store.  Mine has helped me to see three very important things:

1. Of the three grocery stores, one was consistently more expensive than the others. (I determined not to buy anything at that store but the items on sale.)
2. Another was consistently the cheapest in prices for most (not all!) of my basic purchases. (This store is where I do the bulk of my shopping each week.)
3. You really have t0 pay attention to the unit price. (I thought I was getting a good deal on yogurt at Store C until I realized the quantity was much smaller than at the other stores.)

While tracking prices, I also saw a pattern emerge. I noticed that grocery store sales operate in cycles. At least once every six weeks, an item's price will fluctuate from full "retail price" to "sales price" and then to "stock-up price." I only had to wait 4-6 weeks for that price to hit rock-bottom at which point I would stock-up for the next 4-6 weeks.

My price book has since evolved considerably. Today, it is more like a "Grocery Price List," consisting of only my "stock-up prices."   Yet, it still accomplishes my same goal: saving money at the grocery store.


Sample:

Grocery Price List
Item	Quantity in Oz	Price	Price per oz.
All-purpose flour (unbleached)	80	$1.93	0.02
Apples	48	$2.89
Artichokes, marinated	12	$2.29	0.19
Avocados	1	$0.49	0.49
Baby carrots	16	$0.49	0.03
Baking spray (canola oil)	6	$1.99	0.33
Balsamic vinegar	16.9	$2.59	0.15
Bananas	16	$0.39	0.02
Basil (Spice)	1.125	$0.99	0.88
Beef broth	32	$1.19	0.04
Berries (Frozen)	16	$2.99	0.19
Black beans	15	$0.55	0.04
Blueberries (fresh)	6	$1.99	0.33

I take my Grocery Price List with me on every trip to the grocery store to check to make sure I'm getting a good deal. My goal is to never pay the full retail price unless absolutely necessary. Of course some products like milk, dried beans, and baking goods (flour, spices, and sugar) are rarely on sale, but I know where I can get them at the cheapest possible price so that's where I shop for them.

Yes, making a price book is time-consuming and requires some effort on your part.  I would recommend starting with 5-10 of your most frequently purchased and most expensive grocery store items. Then, add to your price book on subsequent shopping trips.  You don't want to be stressed out, or you'll give up.   

Trust me! If you commit today to set up your price book, then, given time, you will come to know your prices and really begin to save money at the grocery store.


Have you ever made a price book? What has been your experience with it?

Join me again next Thursday as we look at another way to save money at the grocery store.

Blessings to you!

Keri

For comments or questions, contact me at: growinginhisglory@gmail.com

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