Have you been to a Wal-Mart lately and seen the price of a gallon of milk?  It’s less than $2 – every day.

That’s right – less than $2 for a gallon of milk.

Yes, genuine “moo-juice”.

The real thing.

How does a store like Wal-Mart (or any grocery store for that matter) make any money offering deals like that?  Well, the truth is, they don’t.  It is just another one of the tricks that supermarkets play on unsuspecting shoppers to get them to buy more on every visit.  Here is a brief list of the more common supermarket ploys to get you to purchase (or pay) more than you planned.

 

The “Loss Leader”

Remember that Wal-Mart milk?  That deal is called a “loss-leader”.  Basically, Wal-Mart is offering that item at a price that they will not make money on, but are hoping that you’ll buy other products while you’re in the store to make up the difference.  Generally, when you see a fantastic deal on one specific item, it is generally a “loss leader”.

The “End-Cap”

You know those big displays at the end of each grocery aisle?  That’s called an “end-cap”, and it’s where stores place their most profitable products.  Some of those displays seem like you’re getting a great bargain, but in truth, the store is making their highest profit margins on those items.  Remember that the next time you’re tempted.  It’s often better to go to the actual aisle where other brands of the same product are located and compare.

Product Placement

Why is the meat, bread, and dairy always at the back of the store?  Well, once again, it’s a planned strategy to get you deep into the merchandise, hoping something will catch your eye and you’ll make an additional purchase.  Impulse buys are a big part of grocery shopping (especially if you shop hungry), so be aware that retailers are out to get you with sights, smells, and samples all over the store.

 

Product Placement (Part II)

Check out the shelves next time you’re in the store.  All the brand name items are at eye level, making it easy for you to see them and select one (probably a more expensive option), rather than reaching up or squatting down to compare prices.  Take the time to look up and stoop down to check for better deals.

 

“5 for 5” or “10 for 10” Deals

You see these all over (especially in the dairy aisle for things like yogurt).  Do you really need to buy five or ten of an item to get that special price?  More often than not – you don’t, so its best to ask before you overstock to get the deal you want.  Remember, it’s not a bargain if it eventually goes to waste at home.

I certainly don’t begrudge retailers for trying to make money, but it’s important to understand what is going on (and why) in your local supermarket’s marketing strategy.  Remember these tips and you’ll be ready to tackle your next weekly grocery run as a better informed consumer.