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Getting the Balance Right
When I first started Cheapskating, it was out of need (and more than a little desperation). Times were tough for us: we had no income, two little boys and a baby on the way and a mortgage to pay.
I also had more than a little pride to get over. We may have been down to our last $200, but there was no way I was going to let anyone think we were poor. Instead I sat down with a notebook and a pen and made lists, lots of lists. I listed recipes, ingredients, the contents of our fridge, freezer and pantry. I listed how often we ate specific foods and the generic equivalents of everything I could think of.
From those lists I made up a shopping list of four weeks’ worth of groceries, with prices alongside each item, until the total reached $200. Then I stopped.
As I wandered through the supermarket (it was Jewel, the cheapest in town at the time) pushing a trolley, I weighed the value of every item I threw into it. I looked to see if there was a cheaper brand and I calculated the unit cost of each thing. And I made a note of the price, unit cost and brand. That, by the way, was the beginning of my very first price book.
In those early days ninety-nine per cent of the items in my trolley were generic or No Frills. They were cheap and I had a very strict budget. Most of those items were more than acceptable to our family, great value for the cost. Some weren't, and they, no matter how cheap, were not good value.
Value is a perception. What I consider value for money may not be even close to what you think is value. This applies to everything, not just food. But in the supermarket perceived value can make a big difference to your grocery bill.
I have no problem with plain label flour. Flour is flour, my baking turns out the same whether I pay 85c a kilo or $1.95 a kilo. And sugar is sugar, so generic is fine. We don't import sugar in Australia, so regardless of the packaging the sugar I buy is Australian. Saving fifty per cent is worth the plain packaging for me.
Another part of the value of an item for me is the enjoyment I get from eating or drinking it. I am happy to make and drink my own version of hot chocolate mix. I enjoy the taste, like the fact that it is lower in fat and sugar than the brand name and less than a third the price.
But I don't enjoy generic coffee. For me it is a false economy to spend money on something that I dislike so much that it sits for months before being used to dye a school project.
I do however, absolutely enjoy my brand name coffee. It is more than twice the price of the generic, but the value to me is worth it for the enjoyment I get from sipping a mug of hot coffee alone.
The most important portion of value is the benefit to my family. I am more than happy to pay for free range eggs and organic fruit, vegetables and meat. The fact that I am not putting my children's health at risk with the chemicals that are in non-organic foods is of huge importance and therefore value to me. You however may not feel the same way.
Of course I buy the brands I like when they are on sale or in bulk to take advantage of quantity discounts, bringing them in line with my budget.
I also had more than a little pride to get over. We may have been down to our last $200, but there was no way I was going to let anyone think we were poor. Instead I sat down with a notebook and a pen and made lists, lots of lists. I listed recipes, ingredients, the contents of our fridge, freezer and pantry. I listed how often we ate specific foods and the generic equivalents of everything I could think of.
From those lists I made up a shopping list of four weeks’ worth of groceries, with prices alongside each item, until the total reached $200. Then I stopped.
As I wandered through the supermarket (it was Jewel, the cheapest in town at the time) pushing a trolley, I weighed the value of every item I threw into it. I looked to see if there was a cheaper brand and I calculated the unit cost of each thing. And I made a note of the price, unit cost and brand. That, by the way, was the beginning of my very first price book.
In those early days ninety-nine per cent of the items in my trolley were generic or No Frills. They were cheap and I had a very strict budget. Most of those items were more than acceptable to our family, great value for the cost. Some weren't, and they, no matter how cheap, were not good value.
Value is a perception. What I consider value for money may not be even close to what you think is value. This applies to everything, not just food. But in the supermarket perceived value can make a big difference to your grocery bill.
I have no problem with plain label flour. Flour is flour, my baking turns out the same whether I pay 85c a kilo or $1.95 a kilo. And sugar is sugar, so generic is fine. We don't import sugar in Australia, so regardless of the packaging the sugar I buy is Australian. Saving fifty per cent is worth the plain packaging for me.
Another part of the value of an item for me is the enjoyment I get from eating or drinking it. I am happy to make and drink my own version of hot chocolate mix. I enjoy the taste, like the fact that it is lower in fat and sugar than the brand name and less than a third the price.
But I don't enjoy generic coffee. For me it is a false economy to spend money on something that I dislike so much that it sits for months before being used to dye a school project.
I do however, absolutely enjoy my brand name coffee. It is more than twice the price of the generic, but the value to me is worth it for the enjoyment I get from sipping a mug of hot coffee alone.
The most important portion of value is the benefit to my family. I am more than happy to pay for free range eggs and organic fruit, vegetables and meat. The fact that I am not putting my children's health at risk with the chemicals that are in non-organic foods is of huge importance and therefore value to me. You however may not feel the same way.
Of course I buy the brands I like when they are on sale or in bulk to take advantage of quantity discounts, bringing them in line with my budget.
How do I choose what goods I value over the others on offer?
Well I don't do it while I am shopping. That is just leaving me wide open to the temptations of the merchandising. The lighting, the music, the store layout, even the size of the trolley, is all designed to make me want to shop. Add to that the attractive packaging and signage used and I would be off my rocker to try and make a wise choice in-store.
No, I do my research before I even leave home. Browsing the junk mail and supermarket websites, even resorting to Choice for advice on things that may be new or that I am unfamiliar with, I use the information I find to make up my shopping list.
The number one rule of grocery shopping is shop with a list. The number two rule, and the most important in terms of sticking to a grocery budget, is if it isn't on the list, I don't buy it.
Occasionally brand names appear to be better value for my money than the generic. If I have tried the generic and found it acceptable then I usually make a judgement call and stick to the generic. If I can't find a reason to buy the more expensive product then the cheaper generic will win hands down, every time.
I know what I want from each and every product on my shopping list. I've done the research, calculated its value to me and made my decision. I don't need to waste time umming and ahhing in every aisle that was done in the comfort of my own home while I was making up my shopping list.
The biggest benefit, apart from the obvious money saved, is time. I don't spend hours doing the shopping each week. I know what I want and I go in and get it, pay for it and get out. Less time in the store is less money spent and maximum value gained.
Before you dismiss generic and home brand groceries give them a try. If you don't like them you can always go back to your brand name favourite, bought on sale of course.
No, I do my research before I even leave home. Browsing the junk mail and supermarket websites, even resorting to Choice for advice on things that may be new or that I am unfamiliar with, I use the information I find to make up my shopping list.
The number one rule of grocery shopping is shop with a list. The number two rule, and the most important in terms of sticking to a grocery budget, is if it isn't on the list, I don't buy it.
Occasionally brand names appear to be better value for my money than the generic. If I have tried the generic and found it acceptable then I usually make a judgement call and stick to the generic. If I can't find a reason to buy the more expensive product then the cheaper generic will win hands down, every time.
I know what I want from each and every product on my shopping list. I've done the research, calculated its value to me and made my decision. I don't need to waste time umming and ahhing in every aisle that was done in the comfort of my own home while I was making up my shopping list.
The biggest benefit, apart from the obvious money saved, is time. I don't spend hours doing the shopping each week. I know what I want and I go in and get it, pay for it and get out. Less time in the store is less money spent and maximum value gained.
Before you dismiss generic and home brand groceries give them a try. If you don't like them you can always go back to your brand name favourite, bought on sale of course.