subject: Being Smart About Saving Money [print this page] Unless you're part of the 1% that nobody likes, you're probably trying to save money. As a result, even if you were more luxury-minded just a few years ago, price is now probably an increasingly important factor when you make a purchasing decision. It's the same for most people: we want the cheapest medicine, the cheapest food, and the cheapest car insurance we can find.
But what price do we pay for saving money? Is the great deal we think we're taking advantage of really a great deal? Or is it just a marketing ploy designed with the newly discovered frugality of our society in mind? The sad fact of the matter is that sometimes saving money in the short term means spending a lot more of it down the line.
Food is a major expense for nearly every family, and food is an area where almost everybody tries to save money. Price and quality have very little to do with each other, since a whole host of different economic factors go into what you spend at the check stand. As a result, smart food shopping can save you a lot of money. But bear in mind that your savings and your health are not as important to major food companies as their profits are.
Brand identity has a huge effect on food prices, and branding of food products has a long history. Food marketers know the value of maintaining a brand that people trust, and the brands that you know the best have spent billions of dollars to establish their place in your mind. Why? They know that familiarity breeds trust and that when you make a purchasing decision you will pay extra for a brand you know. So you do pay extra. You have to in order to cover the exorbitant cost of advertising, and sometimes that expense is the only difference between the name brand and an off-brand competitor. In those cases, buying the off-brand product makes sense.
In some cases, though, it only makes sense economically, and this is especially true when you get into the store brands at discount centers. Sometimes, the difference between the product is nothing more than packaging. Other times, it goes much deeper, with cheaper, lower quality ingredients. Eating lower quality food might save you money now, but it will cost you in the long run with poorer health, more health problems, and more health-related expenses.
There will always be deals on offer at the grocery store, just like at any other store. But bargain hunting only gets you so far. You've got to be savvy as well, and you have to be careful that you're getting the best value, not just the best deal.
Because balancing food value and price is so difficult, there are plenty of published rules for food shopping - and for shopping in general. But most of these rules are presented by the very marketing machines that make the process difficult in the first place. The rules establish patters, which are easier to take advantage of. So you have to be assertive about informing yourself, and you have to be vigilant in the aisle, if you're going to save money now and down the road.
What does that mean? Simply, it means always turn the package over. Whatever you're buying, from store-brand peanut butter to the cheapest car insurance, you might be getting a great deal, or you might be saving money today that you're going to lose down the road. So keep your eyes open.
