Posted on 02/09/2012 8:52:15 PM PST by rawhide
When the economy hit the skids a few years ago, we responded with tactics that have gotten us through previous recessions: We stopped eating out and traveling as much, curbed our discretionary spending and chose generic items for basics like groceries.
But then something strange happened: We began to prefer many of those store brands. Increasingly, we’re willing to pay even more for them.
What’s going on here? According to the Wall Street Journal, stores have raised the prices of private-label nonperishable food by 5.3%, compared to a 1.9% increase for goods made by national brands. Store-brand versions of perishable goods rose in price by 12%, compared to 8% for name brands. Although generics still cost an average of 29% less than name brands, stores are closing that gap quickly.
The Journal says the number of exceptions to this rule — instances where store brands cost more than name brands — are growing.
A big part of the reason we like store brands more now and in some cases even prefer them over big national brands is that retailers have expended considerable effort branding their own lines of goods. Instead of a no-frills, drab label with only the bare minimum of information printed on it, brands like Target’s Archer Farms line of snack foods, beverages and other items have their own colorful logos and distinctive branding.
The article singles out Archer Farms as one example of a private-label brand that has done a particularly good job creating an upscale generic image and raising prices accordingly. For instance, its roasted almonds cost a penny more per ounce than the same product made by Planters.
This trend may spell trouble for big manufacturers of name-brand groceries, if consumers have grown used to and developed loyalty toward store brands.
(Excerpt) Read more at moneyland.time.com ...
inflation and the high cost of government
oh wait, food doesn’t count in inflation rates....
I really haven’t noticed the problem that is being described. What I have noticed, however, is the widespread practice of overcharging for the larger ECONOMY sizes of very many products on a per unit basis (per ounce, etc.) Palmolive liquid detergent, for example is almost always cheaper per ounce for 16 oz. that it is for any other larger size, 24 or 48 oz sizes, until you get way up to 64 oz. . The practice seems especially evil, considering the fact that it is likely to penalize the aged, or less educated, or English “challenged”. And to make matters deliberately more confusing, the stores that mark their shelves with Per Unit pricing will very often use different units, such as Tide detergent in one size labelled as .xx per oz for one size, and the next larger size listed as .xx per LOAD. All stores do this.
Publix Heavy Cream (purple aerosol can) is much better then ReddiWhip.
That is why I go to Costco and decant into smaller containers for everyday use. My hands are small and I have joint problems, so hefting large containers is very difficult. But decanting into smaller containers works for me.
I’m finding that the store brands cost almost the same as national brands here in Pa. If the national brand is on sale, it’s usually a better buy than the store brand.
I think the reason store brands are picking up in sales is because people don’t bother looking at the prices (if you can find them) and assume the store brand is cheaper.
I have noticed what you posted. Makes it a little difficult to make an informed decision.
There is a Costco in the Austin area, but I go to Sam’s Club, and I don’t feel like paying two yearly fees to shop at their stores.
The discount grocery stores that sell mostly their own brands like Sav-A-Lot and Aldi are doing great, and the fastest growing retail segment is the “dollar store”. Research says there is market demand and enough under-served areas in the US to support another 15,000 “dollar stores”.
Generally, when the demand goes up so does the price.
Good point. I've seen this too. I'm going to start carrying my calculator around. Sometimes it's cheaper to buy the bigger item, sometimes not.
I got the Great Value mayo at Wal-Mart one time. That stuff was nasty.
There are no Sam’s Clubs here that I know of in southwest Washington state. I refuse to go into Wal-Mart with all the prostitutes hanging around the parking lot. (My nephew’s girl friend works there as a cashier, and hates it).
As for Costco, it is a 110 mile round trip for us. We go 4 times a year and save lots of money buying large quantities of detergent, dog and cat food, batteries, beans, rice, etc.
It is hard to know the true value of the different sizes when the stores play tricks with their pricing schemes. The may tell you the price per oz of a product for the smaller package, then tell you the price per lb of the larger package. Which is the better value? Just happened to me last night.
I probably wouldn't buy their mayo but I've never found any problem with Great Value. I buy items that are hard to mess up like dried fruit, beans etc. Their mozzarella cheese is very good.
I’ve tried other GV products and not had a problem, but never their mayo again. My husband really likes the GV yogurt.
Walmart is especially bad about having larger sizes be more expensive than smaller sizes, but almost all of the others have at least some instances of this.
One thing I hate is the incredible shrinking packages and steady prices. So far I've managed to keep within my budget with sales and cheaper meals like beans and rice instead of meat and roasts instead of steaks etc.
I also grow my own produce in the summer, and some in the winter, like spinach, greens and herbs, that helps with the cost too. I mainly started it to avoid pesticides etc.
I managed to get about a year's worth of peanut butter before the price doubled. Bought about 2 years worth of coffee in 2009, that price has now doubled, still have 6 months in stock, and have been picking up a can here and there whenever there is a really good sale.
I cannot remember the last time I bought any grocery items at WalMart. WalMart has lost their way years ago, and then they lost me. And I am not going back.
So I have a few things I get there on a regular basis, but mostly I go to Save A Lot or Country Mart. I also try to buy made in USA, and that is easier to do at Country Mart. Plus their distribution is out of KC Missouri not Arkansas. Since I am in Mo that is a big deal for me too.LOL.
So I have a few things I get there on a regular basis, but mostly I go to Save A Lot or Country Mart. I also try to buy made in USA, and that is easier to do at Country Mart. Plus their distribution is out of KC Missouri not Arkansas. Since I am in Mo that is a big deal for me too.LOL.
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