Sunday, May 3, 2009

How Supermarkets Lure You To Buy More



Consumer Reports retail expert Tod Marks explains to Susan Koeppen of CBS's The Early Show that supermarkets exist to make a profit for their shareholders. Hence, everything from product placement to lighting is designed to lure you to buy a product. What can you, as an aspiring frugal shopper, do? Mark outlines 5 key steps:
  1. The first thing to do when you go to the store is pick up the flyer.

    My take: I go one step further and visit the store's website to see what's on sale before I leave my home. I find that the best way to avoid the temptation of impulse buying, which is how supermarkets maximize their profits, is to visit the websites of my favorite stores, see what's on sale and plan accordingly.

    Mark further explains:
    "But just because something is featured in a flyer doesn't mean it's on sale. It may not mean it's a great deal at all ... It may mean a manufacturer paid advertising dollars toward the mention of that product."
    My take: I have experienced this firsthand. Burt's Bees (my favorite brand of personal care products) pays for product placement in Target and Walgreens weekly flyers. I notice that the Burt's Bees product placement in these flyers conveniently avoid mentioning the world "Sale Price" - a clear indication that the price is full retail price, and sure enough it is.

  2. The End of the Aisle -- The "End Cap" -- Is the Single Hottest Selling Spot in the Entire Store
    My take: You can sometimes find clearance items or bargains of slow moving items at the "end cap" but always check the expiry date or condition of the product before buying.

  3. Product Placement Is Key
    Mark says: "Prime selling space is right in the center, eye-level if you will ... The lower level and the high-on-top level, they're kind of the low-rent districts..."
    My take: You can find bargains if you are willing to bend down and look at the price. Supermarkets often capitalize on our laziness: we grab things at eye level and don't want to bother bending down or craning our necks to search for less expensive products.

  4. Convenience Will Cost You
    My take: How true, when you compare, e.g., the price of prepackaged salads with that of a head of lettuce.

  5. Saving Money Is in the Bag"
    Generally speaking," Marks says, "the better deal is almost always to be had when you buy the bag versus the loose produce."
    My take: You pay for the privilege of selecting your produce. While it is true that in a bag of apples there may be one or two that might be bruised, it's still cheaper per pound than selecting your own apples.

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