Casinos are master classes in the art of getting consumers
to spend. Their labyrinthine designs force non-gamblers to walk the farthest
distances through them in order to find their way out, all to maximize the
likelihood you become a gambler. The things you’re most likely to need sit deep
inside the centermost areas lest you simply skim past the slot machines and
card tables to grab something easily on your way to the hotel. The things you
walk by are designed to entice with lights, sounds, and a sense of wonderment
to get your purse strings loosened. There isn’t a clock to be found to indicate
whether you’ve reached the time you said you would leave, and oxygen is pumped
inside to help you remain refreshed and energized for longer so you never get
too tired to stop gambling.
For those of us pursuing the path of financial fortitude
casinos are not a place we’re likely to spend much time. But there is a place
we go to nearly every week that is designed much the same as a casino to keep
you in it as long as possible, to maximize the amount you spend, and to
overwhelm you with billions in psychological research to ensure they get the
most of your bucks. That “casino”? Your local grocery store.
Making you a sucker
Each year millions are spent investigating the means by
which a grocery store can get just a little bit more money out of each of its
customers. After all, if you have 50,000 customers a week and you can get each
of them to spend $1 more per visit that’s an extra $50,000/week or
$200,000/month, millions of new revenue in a year! For that much money you can
absolutely believe a company like Safeway is going to invest some coin to
figure out how to unlock your spending.
How does that materialize in the real world? Have you ever
noticed that when you walk into a grocery store you’re often dropped first into
the bakery, floral shop, or the produce? That’s entirely by design to numb your
mind into associating good smells and wholesome healthy food with the general
atmosphere of the store itself. When you smell tulips and sourdough your brain
thinks, “Mmmm, delicious,” and it holds that thought as you walk throughout the
store.
Why is it that milk is always at the back of a grocery
store? It’s because almost everyone buys milk each week meaning it’s a highly
purchased item and by putting it in the back the grocery store increases the
chances that you’ll impulse buy something by making you walk through as much of
their store as possible. It’s exactly the same trick that casinos use to ensure
you walk as much of their floor as possible; the longer you’re in the
store/casino, the likelier you are to increase your spending (and even an
increase in $1 is big bucks for the “house”!).
At the front of the store near the checkstands you have last
minute impulse buys like candy bars and sodas. They’re perfectly situated to
take advantage of the growing hunger you have in your stomach after walking
around the grocery store looking at all that delicious food for an hour. Convenient
that so many of those items are priced at almost exactly $1, a cheap price
point to you that is very valuable to the store (50,000 users spending $1 more
per trip is millions in yearly
revenue!).
It’s not just the grocery stores themselves working to
procure extra revenue straight out of your wallet. Manufacturers of the
products you buy are in on the game too. The next time you’re in the cereal
aisle look at the placement of the eyes on the cartoon characters used to sell
children’s cereals. Captain Crunch is always looking down. Why? Because
marketers know that kids’ eyes are at a lower level and they’ll perceive the
Captain as looking directly at them. That increases the likelihood they’ll beg
dad to buy them the cereal, a trick worth millions in increased sales every
year.
What about the incredible case of the vanishing package?
That’s when the people who make what we buy decrease the quantity of a good in
a package but conveniently leave the price the same. Can’t get people to pay
more for your product? Just sell them less at a time and voila! You’ve done it!
There is an entire industry around making sure consumers
spend the highest amount possible at each grocery store trip they make. It’s a
sliver of the $2.1 trillion spent on marketing every year. When you take the politically radical act of living frugally you’re fighting
back against the house and putting more money in your pocket.
The Rise of the Super Couponer
In a different life I made my living solely as a writer and
was once working on a freelance article about people known as “super
couponers.” The concept, made famous by the TLC show “Extreme Couponing,” took
“beating the house” to an extreme for grocery shoppers. These folks would store
up huge swaths of newspaper inserts and other deals and use them to not only
save thousands on groceries but to actually make
money from the grocery store! Professional card counters eat your hearts out;
these folks knew how to get it done in the grocery casino.
Part of my assignment was understanding how the system
worked and experiencing it myself. As a former professional gamer I was excited
to learn a new system and then break it down to my advantage. It was
essentially a live action game, even if the 20-something male part of me faced
some gender bias about being comfortable shopping with a ton of coupons (I got
over it). The gist of the philosophy was this: the grocery store is a casino
trying to extort from you the maximum amount of money possible. Most shoppers
are rubes totally unaware of what’s going on and how they can prevent
themselves from being taken advantage of. Super couponers count cards, knowing
all the best deals and finding ways to match coupons to sales and specials in
such a way that they pay the least
amount possible at the grocery store. In rare instances? They’d come across the
holy grail of couponing: a “moneymaker” in which the deal was so good the
retailer would actually hand them
money for shopping there.
After a few weeks of research I headed off to detail my
first experience with super couponing. I was headed to a local Albertson’s
where they had a deal on spaghetti that allowed you to purchase a box while
paying $0 due to a promotion and a coupon. I had 30-some copies of the coupon
but didn’t really believe things could possibly be that easy. When I got to the
store I found a manager, explained the situation, and asked him how many boxes
of free pasta I could walk out of the store with. Perplexed he looked at the
coupon, back at the price, and shrugged saying, “There’s no limit. If that
thing rings up free you can walk out with as many as you have coupons for.”
I was totally floored that he was just going to allow me to
clear out his shelves, but the writer (and gamer) in me couldn’t pass up the
opportunity. So I scooped 30 boxes of pasta into my cart, paid $0 to the
cashier for them, and walked out. I’ll admit: it was kind of a rush. It felt
like I had just gotten away with a scam somehow. And lest you be upset that
Albertson’s took a loss, they were reimbursed by the manufacturer for each
coupon. As for the 30 boxes, my wife and I ate a few but the rest were all
donated to the local food bank.
My dabble with super couponing was fun but ultimately too
time-consuming. Tracking all the deals every single week was more work than I
wanted to do but learning the principles of the mindset behind super couponing
was very valuable. While I don’t save up 30 copies of the Red Plum
advertisement insert each week anymore I do
approach grocery shopping with the mindset I learned from my research into the
phenomenon: the grocery store is a casino, or “the house,” and you’re a savvy
card counter trying to leave with as much value as you can while spending as
little as possible.
(As for super couponing, grocery stores caught on and used
big data to fight back. Now it’s almost impossible to pull the shenanigans you
used to be able to get away with, but if you’re interested in learning more
check out The Krazy Coupon Lady).
Beating the House
So we know grocery stores are gunning for our dollars, and
we know we can fight back. But how can we make sure we’re getting the most
value from our trips to buy food each week? Here’s a list of simple steps you
can take to maximize your value and minimize your spending at the store (and no
it doesn’t involve cutting out hundreds of coupons every week).
Eat before you go
It sounds trite but it really makes such a huge difference.
When your blood sugar is low you’re much
more likely to make irrational, spur-of-the-moment decisions. At a grocery
store? That translates to buying more Snickers at checkout, bigger proportions
of the foods you normally get, and simply adding more items overall to your
cart before you get to the checkout line. You can simply and efficiently beat
this by just shopping on a full stomach. With your brain not convinced it’s
going to starve any second you’ll be much less likely to throw junk into your
cart you have no actual need for. This can add up to big savings long-term.
Never shop without a plan
This is the big one. Going into a grocery store without a
plan for what you’re going to eat that week is like blood in shark-infested
waters for the grocer. You’re at the maximum level of risk to fall victim to
the marketing efforts they pay millions to use to ensnare you. Don’t let it
happen to you! Instead work out a meal plan each week for your family that
plots out what you’ll be eating and build out your grocery list from that. It
will save you far more than going into the store and hoping to just buy
whatever looks good from the grocer. They make the most expensive items look
the tastiest so you’re more likely to spend on buying them.
Take advantage of savings programs and apps
If your grocery store offers a savings program or “club card”
use it. Not doing so is simply leaving money on the table. If you’re a stranger
visiting a grocery store for a single time you can always consider using Jenny’s
Number (867-5309) to try to get a discount even if you don’t have a card. The
odds are someone has signed up with
that number.
Club card type offerings are a big way in which grocery
stores cut down on the phenomenon of super couponing and also how they build up
huge amounts of information about your shopping habits. The tradeoff is that
they generally come with big savings over the “regular” price of items in the
store. If your store offers an online account with your grocery club card set
it up and utilize it. The Safeway account I use each week provides me custom
offers tailored to my spending habits which saves me on the things I buy
regularly. I also use the Safeway app to build out my grocery list so I can
find things in the store and add digital coupons directly to my shopping cart
before I check out. It’s also a nice way for my wife and me to keep a
custom-built grocery list growing each week. We both use the app with the same
account login so when she adds “Get milk” to the list on her phone it pops up
on mine when I’m actually at the store. Saving money and divorce proofing your
marriage? Sign me up.
Use the circular to build your meal plan
It’s one thing to build a meal plan each week, but by using
your local grocer’s weekly circular (or logging into your online club card
account) you can see what’s on sale and build your meal plan from that. I love
asparagus because we used to pick it wild from the ditches near my home in Iowa
growing up. But out in Seattle it’s an expensive vegetable at $5.99/pound. So I
watch the weekly deals and pull the trigger whenever it gets to $2.99 or
cheaper. Over time I’ve learned the going rates for most of the foods my family
eats most often which ensures I buy when prices are low. If you like filet
mignon and grilled chicken, building your meal plan to feature the filet on the
week it’s on sale for $2/pound less than usual and the chicken when it’s on
sale for buy 1 get 3 free you can save your family a lot of dough and still buy
the foods you love. Doing it the other way around can cost you; by building your
meal plan to the specials in your stores each week you can save hundreds of
dollars each year.
Stock Up
I didn’t realize growing up on a farm that it was out of the
ordinary for most folks to have a refrigerator/freezer combo in their kitchen
and a separate stand-alone freezer unit in their basement or garage. It was
common on the farm because we used that freezer to stock up on meat when you
had one of your animals processed or after a good deer hunting season. While a
separate freezer might not be the right fit for your family, you can absolutely
take advantage of good times to stock up on things. You’re buying low to save
yourself from buying high.
Here’s an example: a few weeks ago at my local Safeway
chicken breasts went on sale at buy one get three free (yes, four for the price
of one). My family eats a lot of chicken so I knew we would use the meat.
Instead of just buying what we needed that week for our meals I bought as much
as I felt we could reasonably eat from our freezer over six months. That meant
my weekly bill for groceries that week was a little high, but over the long
term we’ll pay 25% of the normal cost for our protein. That’s a huge savings.
We had enough storage in our freezer/refrigerator to handle
the amount I purchased and now at least once a week I pull a few breasts out to
thaw overnight for a delicious chicken-based dinner. The savings is amplified
by the fact meat protein is often one of the more expensive costs on the menu.
Enjoying the spoils
Remember, millions of dollars go into figuring out how the
house can beat you at the grocery game every year. Fight back by being an
informed consumer and going into your local grocery store with a plan to walk
out with as much value for as little dollar as possible. Use the steps outlined
here to make sure you’re getting the most bang for your buck so you can put
your grocery store savings towards achieving your goals from the 10 Steps.
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