How many of you are truly aware of what you buy when you make a trip to the grocery store? Do you have certain brands you consistently buy? Or do you just throw whatever looks good at that moment in effort to get out of there in record time? I’m part of the former group. I love label reading…yes, I know you are all shocked. Once I’ve scoured the labels and found the ones that fit our lifestyle and pocketbook, I’ll keep buying the product. Needless to say, since I’m pretty consistent with my buying and I am quick to note the price changes. For example, Greek yogurt…when I starting buying it 4 years ago it was $6-$7 for a 35oz container at Costco…4 years later, $5 for the same container. Ever wonder why prices change?
The basic answer is supply and demand. The price becomes cheaper when grocery stores buy in larger bulk. If the demand is high and quantities are sufficient then the price can come down. But how do they accurately know what items are in hot demand?
The answer is at the checkout. Every time you buy an item you are in essence “voting” for what you would like more of. So, in the case of the Greek yogurt…yes it was a little pricey…but I knew every time I bought it I was voting to keep it in stock. Over time, as more people “vote” for the item, the quantity the store has to buy increases and the price per volume decreases and the price the consumer pays drops.
I was talking to an IT consultant a couple weeks ago and she validated what I already knew. She was doing a project for a large grocery chain and was able to pull every item she bought from that store for the last 3 years…and probably could have gone further back.
Yes, there are lots of other factors that influence price changes…cost of gasoline, weather, supply. However, casting your vote at the cash register definitely has a significant impact. As a matter of fact, I just found out that our local grocery store stopped carrying my favorite brand of Greek yogurt. I was bummed, but okay knowing I could still get it at Costco’s at a better value. Looks like not enough people were voting.
So the next you are at the grocery store what would you like to see on your ballot…fresh produce or poptarts?
