Setting the record straight: Store brands or name brands or…?

by PATRICIA HolmesDepartment Store

Setting the record straight: Store brands or name brands, which is cheaper?

Before I give you the answers, let me just say that TheGroceryGame.com has databases that go back as far as 10 years. These databases track sales at over 200 supermarkets’ marketing divisions, with over 10,000 items in each of those divisions. The numbers are both fascinating and revealing. All that to say, I know what I’m talking about. Numbers don’t lie.

In a survey released today by SymphonyIRI, on consumers’ beliefs and trends on all things “back to school”, I see that consumers don’t really know what the best deals are or where to find them. But there is something that consumers are right about and finally learning in this economy:
“58 and 57 percent of all respondents, respectively, are stocking up on items because they are on sale and buying what’s on sale versus their favorite brands” – That’s a good thing. Glad to hear it. That’s what Gamers call “investing”, the only way to make sure you never have to pay full price for groceries.

But are they getting their groceries at the lowest possible price. Are they going to the right place to shop? The survey further reveals: “… among households earning more than $100,000… 46 percent are visiting supercenters, such as Walmart Supercenter and SuperTarget, more often.” That’s more often than before this rough economy. Sigh… Walmart is not the best place for savings. Grocery Game databases reveal that the best savings on groceries are at the hi-lo supermarkets, which are major supermarket chains. Their sale prices typically dip lower than their EDLP (every day low price) counterparts. And no, Walmart doesn’t match all the sales at your local supermarkets. I’ve blogged about that ad infinitum. So I’ll step down off of that soap box for now.

Now on to the store brand vs. name brand question… The survey reveals that “half of … survey respondents note store brand lunch box components… provide better value versus national brands.” Sigh… Here’s the facts…
Nationwide in 50 states, we see the following levels of savings. Most of the time, it goes like this, starting with highest prices to lowest prices when it comes to nearly everything in the supermarket:
1. Name brand at regular price (not on sale)
2. Name brand on sale or Store brand at regular price (about equal)
3. Store brand on sale
4. Name brand on sale with a coupon

Here’s what this means, going through the above list from most expensive to least expensive:
#1 – Name brand products at their regular price will kill your budget! That’s what you get if you are brand loyal and shop only for what you need each week. This is the worst thing you can do. Fortunately, most people know that.

#2 – When name brands go on sale, they are usually about the same price as the store brand at regular price. Better than #1, but not good enough…

#3 –When store brands go on sale, they will usually beat name brands on sale. Getting better. But it gets better still…

#4 – Here’s where you want to live! Shop name brands and use a coupon to go with it. According to our databases, this will give you the lowest final prices on your groceries most all the time.

Grocery Gamers save an average of $512 a month for a family of four, have top quality food and household products, and don’t have to keep a coupon file. By playing the game, they invest in the 4th scenario, and only venture into the 3rd  or 2nd level up when they “need” something they haven’t invested in. They rarely pay full price, as in the first scenario.

Listen and learn… There will be a test. I would like to see the statistics improving on the next survey.

Groupon Slumps, Endangering Upcoming IPOs

by PATRICIA HolmesPersonal Finance

After a successful initial public offering by Groupon, technology companies like Angie’s List and Yelp have piled into a perceived window for them to go public. That window appears to have solidly closed, according to The New York Times, as Groupon suffers from the slump characteristic of most other offerings from earlier this year.

When Groupon went public in early November, the company gave itself a higher than expected $20-per-share price. After spiking above $27 per share on its first day, the company seemed to justify its valuation, hovering just under $25 per share for most of two weeks.

But on the Monday before Thanksgiving, a short spike quickly dropped back below recent weeks’ average price over recent weeks. After a slight decline on Tuesday, Groupon watched its stock plummet on Wednesday, falling back to its IPO price before falling well past that level over the holiday.

At 9:51 a.m. on Monday, November 28, Groupon was valued at $17.51 per share, actually up substantially from its lowest point of $16.30 per share on Friday.

According to the Times, some of the year’s most notable offerings – including Demand Media, Groupon, LinkedIn, Pandora, Renren and Yandex – stood at an average price of barely 74 percent of their initial offering price as of Monday morning. Discounting the more successful LinkedIn, that number drops below 50 percent.

Gold Karats, Colors and Rings

by PATRICIA HolmesClothing & Accessories

Most discerning buyers, when selected a ring, note that they can get a 14K or an 18K gold ring and wonder what the difference, other than gold quantity, there actually is between the two.

The 14K and 18K refer to the amount of gold actually present in the item you’re looking at. Pure gold contains 24K so 18K contains 18 parts gold and 6 parts of some other metal, or 75% gold. 14K gold contains 14 parts gold and 10 parts some other metal. The lowest karat weight for gold in the United States, and for the material to still legally be called gold, is 10K (10 parts gold, 14 parts something else).

The ‘other parts’ is what jewelers use to fiddle with the color. You can get it to be gray by using nickel, you can create white gold by using Palladium, and you can use copper to get a rosy effect.

The only warning about gold and the concept of “more is better” is that 24K gold is usually too soft for jewelry. If you look, you’ll often even see that the settings on an engagement ring are white gold or some other “harder” metal and not 18 or 14 karat gold, just to get additional strength. For jewelry, 18K and 14K gold is strong enough.

Cheapest groceries of the year… starting NOW!

by PATRICIA HolmesFood & Beverages

It’s that time of year. Some key grocery items are at their lowest prices of the year starting now until Thanksgiving and until Christmas and Hanukkah.

Here’s the top five to stock up on when you see the sale!:

#1 – TURKEY – The cheapest of all meats for the entire year is the Thanksgiving turkey sale! Look for killer deals that usually come with a minimum purchase. Also look for “limits”. Buy the limit, and freeze one for later. According to the USDA, you can freeze a turkey for up to a year. So, buy an extra turkey if you can, and have one in the spring of next year!

#2 – Canned pumpkin – This will be at its lowest of the year until Thanksgiving. So if you like to bake pumpkin cake, bread, muffins, or if you just love pumpkin pies, now’s the time to stock up, because cans last for over a year. Note the “best by” date on the can. Take a permanent marker and mark it big on the front. Now you know how long you have before you have to start baking again!

#3 – Stuffing mix – This is also at its lowest of the year. Don’t just think Thanksgiving here. Note the shelf life date is good through next year. Think stuffed pork chops, stuffed chickens for dinner, etc. This is a handy staple to stock up on when the price is at its best, and SO easy! When I serve anything “stuffed” for dinner, my family thinks it’s “fancy”! (ssshhh… don’t tell them it’s nothing!) Again, use the permanent marker to mark the date before you put it in your pantry.

#4 – Cranberry sauce – Lowest price of the year. I love it! Some people don’t. Yes, it’s high in sugar, but makes for some fun and pretty desserts year-round. Easy, cheap, and pretty for green Jell-o parfaits with Cool Whip at Christmas for a light dessert, or any time of year. Stock up, mark the date… you know the drill.

#5 – Frozen pies – The lowest prices of the year, and combined with coupons, brand name frozen pies can be bought for $2-$3. Think about stocking up for New Year’s Parties, and other events. 

Also, lowest prices on lots of other things, poultry seasoning, Cool Whip, baking supplies, etc… When you see a sale on something you like or will use in the future, now may be the time to stock up (invest)!

For all of the above, look for coupons to stack with the sales for the best savings. Also, remember to check the store’s circular for “store coupons”. You can combine a “store coupon” with a “manufacturer coupon”. And you can use those coupons on a sale. I call that stacking deals! For example:

Let’s say brand name canned pumpkin is on sale. You have a manufacturer’s coupon you printed from the internet. And you see a “store coupon” for the same brand in the store’s circular (sales ad). Now you can stack the deal:

Sale + Manufacturer coupon + Store coupon = Great savings!

Find electronic coupons, coupons to print, newspaper coupons and more right here:

Now get out there and stock up!