Buying grocery store brand products will save you money, and lots of it. Industry sales research cited by the Private Label Manufacturers Association (PLMA) shows that American shoppers save about $15.8 billion annually by choosing store brands over name brands. To demonstrate how much money you can save by switching from name brands to store brands, I ventured into a local grocery store with pen and legal pad, walked the various isles and documented actual price differences for 20 common grocery items. Below are the results (prices include the store's loyalty card discounts):

As you can see, buying store brands saves you a significant amount of money. This experiment resulting in a savings of just under $31 for 20 items -- that's an average savings of over $1.50 per item (a 42% savings overall)! The difference in prices is what the PLMA calls the "marketing tax" that we pay so name brand manufacturers can promote their products through advertising and other means. However, many store brand items are produced by the same manufacturers that make competing name brand items. So, buying store brand groceries is an easy way to save money.

John Janney, NFAN
http://www.nfan.com/
http://www.helpfordebtors.com/

But, Mr Janney, If (1) you coupon & rebate &/or (2) do your shopping at stores as diverse as Bargain Bank (close-outs), Costco & other warehouse stores, dented-can stores & so forth -- those brand-name items would cost a LOT less.

Just curious about which store or stores & in what place you compared prices.

All teh best, Deb

That's a great chart! Knowing we can save by buying generic or store brands is one thing, but seeing it in black and white really brings it home.

I have, over the years, reduced my needs to almost no name brands at all. I was convinced several years ago when my husband and I attended a seminar where they put generic and brand names of canned fruit in unlabeled bowls and had us compare the taste. Amazingly, the generic won several times.
 

My lab partner and I did an experiment for our statistics class back in college comparing store brand ice cream to a name brand.  The store brand won by quite a significant difference, and we had no problem getting people to sign up as lab rats for us, lol.

We've been weaned off almost all the brand names as well.  I think we're down to Kool-Aid, Splenda,and Knorr vegetable soup mix (for spinach dip).  However, I don't think I've seen any store brands for any of those so I'm not sure they count.  I will often get name brands cheaper through Grocery Outlet, Big Lots, and loss leader shopping than the store brands.

Cheers, Cherie

You are correct. However, the problem I ran into with warehouse stores is the selection is limited and unstable. One month, they may have a particular item but they're out of that item the very next month (they do usually have the basics available, although maybe not in the brand you want... but being furgal is often not compatible with being too picky).

There is also a psychology that works against consumers of bulk items (which is where the savings really are at these warehouse stores). If we purchase a measured amount, we use a measured amount. However, there are consumption theories that strongly suggest that when we buy in bulk, we consume the items more rapidly because we get the feeling we have plenty.

The trick, then, to really maximizing savings when buying in bulk from warehouse stores is to measure your post-purchase consumption. When we buy 48 rolls of paper towels at a great price, we should treat them as if we only bought a typical 8-pack and conserve them just as we would if we really had such a small quantity. Perhaps having a place to store away the "excess" volume somewhere out of sight would help (not always an option for some people, especially those living in small apartments).

Also, the membership fee is another issue. Singles living in small apartments may not have the storage room to benefit from large bulk purchases (and, therefore, realize enough savings to justify the membership fee)... not to mention the problem of intending to shop at warehouse stores once paying your membership fee and then finding yourself shopping at other stores because they are more conveniently located.

However, warehouse stores are great for those with the discipline to plan consumption around bulk purchases, curb the urge to accelerate consumption of bulk items and maintain loyalty to the bulk-warehouse purchasing concept. So, as with anything frugal, it takes discipline. Then again, what doesn't?

I got the prices from Kroger and included their loyalty card discounts.

John Janney, NFAN
http://www.nfan.com/

Deborahmichelle:

But, Mr Janney, If (1) you coupon & rebate &/or (2) do your shopping at stores as diverse as Bargain Bank (close-outs), Costco & other warehouse stores, dented-can stores & so forth -- those brand-name items would cost a LOT less.

Just curious about which store or stores & in what place you compared prices.

All teh best, Deb

I've seen store brand versions of Crystal Light, which is similar to Kool-Aid (it's essentially Kool-Aid with Equal sweetener instead of sugar, which you may be okay with if you are okay with Splenda). There are typically less flavors to choose from, but that may depend on the store. These drink mixes are usually located next to Crystal Light and come in the same type of containers.

John Janney, NFAN
http://www.nfan.com/  

happy5+1:

My lab partner and I did an experiment for our statistics class back in college comparing store brand ice cream to a name brand.  The store brand won by quite a significant difference, and we had no problem getting people to sign up as lab rats for us, lol.

We've been weaned off almost all the brand names as well.  I think we're down to Kool-Aid, Splenda,and Knorr vegetable soup mix (for spinach dip).  However, I don't think I've seen any store brands for any of those so I'm not sure they count.  I will often get name brands cheaper through Grocery Outlet, Big Lots, and loss leader shopping than the store brands.

Cheers, Cherie

jjanney:

There is also a psychology that works against consumers of bulk items (which is where the savings really are at these warehouse stores). If we purchase a measured amount, we use a measured amount. However, there are consumption theories that strongly suggest that when we buy in bulk, we consume the items more rapidly because we get the feeling we have plenty.

This may be taking off on a tangent, but from my own experience, I believe that's true. When I have an abundance of something on hand, I tend to use it like it was free. One thing I did to help counteract that (the things we try to fool ourselves into!) was to store the bulk of the product in a different place and keep only a normal amount in the pantry/kitchen area. It's taking pantry shopping a little further. I know I can go "shopping" for more when I run out, but it's not that accessible, so I'd rather not, being a little lazy. :)

Thanks.  I try to limit the aspartame I consume, I don't know why but I'm more comfortable with Splenda and I like how it tastes better anyway.  I usually get it from Costco for close to half the price of a the regular store.  I generally make Kool-Aid for my kids with less than half the sugar called for so I don't buy the premix of it either.  What I do really stock up on it when I come across a good sale.  We just finished up the stock from when I got it for .05 a packet and I just got it another supply for .10 (it runs about .35 non sale around here).  I figure that's likely to beat any store brand mix anyway.

I agree with you that places like Grocery Outlet can be unreliable if you're looking for something very specific.  Thankfully we're not too picky and we've tried some great things from there we wouldn't have otherwise.

Cheers, Cherie