Supermarket's seem to really have my measure :|

I have a layman's interested in pricing psychology and the various ways people can be "manipulated" into parting with more of their money by taking advantage of the way the brain works (it is more accurately described as causing more people to have a disposition to parting with their money than manipulation though because you cannot directly control individuals like you can groups).

Anyhow, I decided to try a little experiment: I tried shopping at Coles and ONLY buying items on the OZBargain Compare-a-tron pages, nothing else. Just for a laugh.

I was shocked. I was labouring under the delusion that I was a value orientated shopper who played the supermarket game well. I couldn't be more wrong. The last couple of weeks I have spent about 300% less on groceries. Yes, I'm that bad.

It's like the supermarket's have figured out how to completely skew my sense of value with every item I buy because when I'm not using Compare-a-tron I think I'm shopping well but being completely ripped off and when I do follow the Compare-a-tron method I can't see the value on the items I'm picking out but I spend 3 times less.

Thing is, I know rationally what they are doing because I have an interest in how people get manipulated - but I am completely unaware of it happening during the process. This is exactly how it should be according to what I've read, people do not know the manipulation is occurring so it's very hard to defend against but I guess I needed this little exercise to really ram it home what that mean's for me.

Conclusion: I am (hopelessly) not in control of getting value when I shop at a supermarket, they manage to make me believe I am getting great value whilst making me spend around three times as much as I need to.

Comments

  • +8

    Having a list and sticking to it is a good counter to impulse shopping. Thanks to the trons we can plan ahead.

  • Not sure I understand.

    The Compare-a-tron is mostly branded packaged crap isn't it? Some are 50% off. Of course you're going to spend 3 times less.

    They don't discount fruit and veg often. Cadbury and Coke don't make watermelons and avocados do they?

    • Well I don't buy fruit and veg from Coles so … and yes most of it is branded, whether it's crap depends on if you want to eat it doesn't it? I should point out that I only buy 1 meal per day from supermarket's, the other meals are bought elsewhere.

  • +10

    The last couple of weeks I have spent about 300% less on groceries.

    How can you spend 300% less? That means you're spending less than $0. Spending 100% less than you usually spend means spending nothing.

    I am (hopelessly) not in control of getting value when I shop at a supermarket, they manage to make me believe I am getting great value whilst making me spend around three times as much as I need to.

    I don't think what you've done is a fair study. To conduct a fair study, you have to compare the amount of goods you're getting. Anybody can spend x% less on groceries, simple - you just buy less. That doesn't make it a fair study. You also have to take into account the amount of time spent researching, planning and running around.

    I know the OzBargain mentality might be to save every cent, but personally, I find that running around just costs more in petrol, planning and research just costs me time I'd rather spend doing things I enjoy and I'm completely happy with being smart about shopping.

    When there's a sale on stuff you need like toothpaste, toilet paper…etc. stock up for a while, don't get tempted into buying more than you need, buy cheap no-name brands when possible, get stuff from Aldi which can be a lot cheaper and just exercise some common sense.

    Perhaps my most important piece of advice is to shop less. So many people simply have such bad inventory keeping skills that they end up shopping many times a week. What a waste of petrol. Every time you head to the supermarket and back, you've spent $5 or so in petrol. Be smart, shop on your way home from work, shop less frequently…etc. You'll save more by being smart.

    • I am meaning that I spent 300% less. For example I usually walk out spending $60 and now I am walking out spending $20.

      I am also saying you (meaning you, me and everyone) have zero idea that your perception of value is being skewed so your comments about being smart don't have any merit to the issue really. The whole point is that your perception of value is skewed without your knowledge of the process occurring. The best defence is better reference points to judge value against but you cannot tell if you have them in this process. I just worked out that I do not have them I think.

      • +11

        I am meaning that I spent 300% less. For example I usually walk out spending $60 and now I am walking out spending $20.

        That's not 300% less, that's 66.67% less.

        I am also saying you (meaning you, me and everyone) have zero idea that your perception of value is being skewed so your comments about being smart don't have any merit to the issue really. The whole point is that your perception of value is skewed without your knowledge of the process occurring. The best defence is better reference points to judge value against but you cannot tell if you have them in this process. I just worked out that I do not have them I think.

        I don't understand the point you're trying to make. Reference points are simply other prices. Also, value is an opinion, not a property of some item. For example, if something is important to you, it will inherently have higher value. I still think the key is to know, roughly, fair prices and to avoid being caught up buying what you don't need.

        Spend however much time trying to outsmart Coles and Woolworths, but the moment you're tricked into spending $5 on two packets of Doritos you never intended to buy, you've lost whatever savings you were planning to make. That's the key.

        • +1

          Fair enough. That's what I mean't, I didn't phrase it correctly or logically.

          The point I am making is that there is no way for you to know if your perception of value is being skewed or not regardless of whether it is because it is completely unconscious. This means you as an individual are simply terrible at judging your own ability to shop for value but as a group it is very easy to show that high rates of individuals are manipulated into paying more money.

          It's completely incongruent with how we as individuals percieve the world so most people don't believe it works like it does. So basically if you want to know more read up on pricing psychology and human irrationality because it's sorta pointless debating it for me.

          Also you're making exactly the same assumptions I did. I have no idea how you shop but you might want to look at that. Or don't. I think I realised that they have well and truly got my measure as I said that's all.

        • +9

          @Baysew: So if an item is ticketed at $60 and is now $20 and the shop advertises 300% off you wouldn't call that false advertising?

          You can't just say it's a figure of speech, it's still wrong.

        • @paulsterio: Thanks for giving 110% effort on your reply.

          The OP stated " I have spent about 300% less on groceries"
          Pretty exact figure. Is it likely to be accurate - no.
          No need to jump on the maths or lack of conducting a fair study.

          I was labouring under the delusion that I was a value orientated shopper who played the supermarket game well. I couldn't be more wrong.

          The Op is just taking off their (literal) hat to the Supermarkets.

          I have a layman's interested in pricing psychology and the various ways people can be "manipulated" into parting with more of their money by taking advantage of the way the brain works.

          They are not seeking Kochie tips on shopping.

        • +3

          @Baysew:

          Pretty exact figure. Is it likely to be accurate - no.

          Yeah, but it's one thing to say 66.67% and it's another thing to say 300%. In fact, 300% off doesn't even make sense. I use approximate numbers all the time. When I get something on sale, I'll say "oh, it was around like 50% off" even when it was like 45.234% or whatever.

          A lack of accuracy means that at least you are close, or in the same ballpark.

          No need to jump on the maths or lack of conducting a fair study.

          I think when a bad study is conducted, people should note it and point it out. Whilst this isn't some sort of academic journal, it's too easy these days to just simply make up facts. If you watch stuff like A Current Affair, you'll see stupid things like how it's cheaper to shop at X place rather than at Y place, but a look at what they're buying shows that they're buying different quantities.

          What I'm saying is anybody can construct evidence to suit what they say, it doesn't mean it's right.

        • +1

          @Baysew:
          It is failing at primary school level mathematics, not a figure of speech.

  • +4

    Diji… A marketing specialist would boggle you. :-)

    Supermarkets have it down to a fine art, they know what their customers are suckers for and they use that to the hilt. Of late the most obvious lurk is where they dramatically raise the price of something then have it on a half price special a few weeks later.

    Tricks apply to all sorts of selling / retailing, nothing new.

    I have known people who have spent over $10k more than they need to for a new car but are happy as a pig in mud because the really nice salesman gave them a set of floor mats for free. It is not nice to con these people but when they beg for it and you don't do it then the next dealer down the street will gladly nail them to the wall.

    Such is life. Make the effort and be informed or just be a happy floater, the choice is that of the individual.

    • +3

      Yes exactly!

      I wrote this post because I was just floored by how effective it was and silly ol' me did what everyone does - which is assume it doesn't apply to me :D Even though I read over and over that this is exactly what everyone does so don't be a dummy and make that mistake :p

      Now that I have this understanding that they have managed to completely flummox me using various techniques I can approach shopping from that perspective. Basically I need a complete rethink of how I shop at Coles and Woolies because I realised they are winning big time.

  • +7

    Compile a list of things you generally want to buy and remember their 'value' prices in whole dollars. For example, Red Delicious Apples, Lebanese Cucumber, Beans $3/kg; Potato chips 3 for $5, Cadbury chocolate $1/100g, etc. Scan supermarket catalogues to learn 'value' prices. Then whenever you see them, you can decide whether to buy, stock up or pass. Beans, for example, can be sold at $2/kg one week and $12/kg a few weeks later. If you remember the 'value' price in general, you'll know when to buy and when to skip.

    Do you shop at ALDI? They have fairly stable prices that are cheaper than Colesworths.

    • +2

      I hate when they have a special on something e.g. corn chips for $1.59 one week and the next week run the same brand as a special but for $2.19. I often see this and shake my head because a) the stupidity of "specials", b)the contempt supermarkets must have for blatant consumers and their shitty pricing and gouging, c) people who buy in week 2 and think "wow, on special, I got a bargain, I'm a winner".

      • +2

        exactly.. coles had gatorade for $1.59 a bottle, this week they have the same display near the front checkout and its 3 for $7

        • +1

          IGA near me (rural town) has 1L B&G water on special for $1.39. I coulndt find the price tag for Mt Franklin so I looked under B&G tag and its saw B&G normal price was $1.19! Also seen many times a special price tag with the same price as normal. Seems those special tags are simply used to attract your attention - well I get fooled anyway.

      • +17

        Most people have short memories.

        Also, most people have short memories.

        • most people have short memories, but i cant remember who told me that.

      • +5

        I reckon most consumers only really remember the price of the most basic neccessities. For e.g we all know how much a liter of milk should cost, how much instant coffee goes for and so on… but for the more obscure stuff most people wouldn't have a clue as to how much they should sell for and at what point it constitutes as a bargain.

        Supermarkets know this and play around with specials to get us to impulse purchase stuff that we aren't actively looking for and isn't in our shopping list.

        I reckon we should crowdsource a price database — it'll be something similar to CamelCamelCamel and when an item goes on special it'll show how close it is to being the historically cheapest price.

    • $/gram vs $/kilogram is a little deceiving.

      I always measure everything in $/kilogram, using multiple scales just allows them to show something as being a better value than it actually is.

  • +1

    I reckon I have decent memory of prices, it might be because I don't stray away from the brands/products that I buy, e.g. love my tim tams, so aldi's equivalent will never be bought.

    A shopkeeper once said to my wife, you're lucky your husband knows his prices, this was in an asian grocery store. Price differences aren't great, but I know when something is 10 cents more expensive than the store nearby. You have to be this savvy if you want to win the war on shopping. I think the average family spends $300 (2.1 ppl) per week on grocery, that's $15K per year, you could buy a new car every year with that money!

    The principle of buying in bulk to save has always prevailed, however, it's unlikely you'll ever seen the sign "buy in bulk and save" at supermarkets, because that's usually how they save their money, by buying in bulk. So that's why I don't always shop at supermarket chains. A packet of noodles, for example, costs 80 cents, but a box of 30 might cost $22 (no, they won't round it down to nearest 10 dollar), instead of $24, supermakets will never allow you to buy a box of anything. Yes, you do have a lot of noodles to consume now, but at least you won't have to drive out to buy again the next week, saving you petrol money. Which brings me to another topic, my wife loves fresh meat when it comes to cooking and so she'll only buy meat on the day, not on the weekend when we both go shopping, I told her I prefer to buy 3 different types of meat now to cook 3 different types of meals during the week.

    By no means am I promoting asian markets, but I am trying to say that supermarkets do have us by the proverbials, and if you don't change your habits. You end up losing a lot of money.

    I always do quick maths in my head and if it doesn't add up (to be cheaper), I won't buy it. For example, I never buy toilet tissues from supermarkets, even if it's 50% off, because I know my local $2 shop is cheaper, a lot cheaper, because they sell me a packet of 48 rolls, supermarkets fool you with 50% of a packet of, say 6 rolls. I calculate from the number of rolls, down to the number of plys, and then down to the number of sheets per roll, they can't fool me, even Aldi's toilet tissues aren't cheap.

    I used to pay $8-11 for shower gel at the main supermarkets, and this was when they were on sale! I now only buy Aldi's shower gel, at $4 for a litre bottle, you can't beat it.

    Love Aldi.

    • +1

      Shower Gel? What's wrong with soap - Country Life, 6 cakes for 99c?

      • I stopped using soap a few years ago when I saw on tv how bacteria can thrive on it, soap isn't toxic on bacteria, bacteria is only removed (not killed) by physical decontamination, i.e. rubbing it off. If you use soap with antibacterial qualities then yes, bacteria can be killed, however, the cost would be prohibitive, to me anyway.

        Another reason why I hate soap was because it became mushy (imperial leather, cheapest I could find, at bargain shop) after a few weeks and I hate trying to use every bit until it was wafer thin, I tried Lisa Simpson's way of rolling them altogether but it didn't work because soap can't cling to each other.

    • Tim Tams may be great but it bugs me when they vary the size and amounts in the packs.

      they vary from something like 7 to 11 per pack depending on the flavour, all packs look the same size though.

      Toilet paper doesnt matter how many sheets per roll, it is how much per 100 sheets you should go buy - but that is hard as well, soft 3 ply against cheap hard thin 2 ply at the cheap shops in packs of 48.

      • It is confusing when they package Tim Tams differently, or are sized differently, however, I just do quick $/gram calculations in my head, most supermarkets now have $/100 gram calculations for you, so it's easier.

        It does matter how many sheets per roll, but obviously there is also a correlation with the pricing, if one brand of tissue has 300 sheets but costs twice as much the 150 sheet roll (same ply), then of course it isn't cheaper.

        I buy 3 ply from my $2 shops and they're not hard/harsh at all, been using them for years.

        I recently went ABC Tissue's annual sale, I saw quite a few people buying their stuff, one old guy even said "I couldn't resist the low price, so I'm coming back". They had a pack of tissue similar to what I buy, 40 rolls, 3 plys for $20, I thought, that's $3 cheaper than my pack, however, there is 8 less rolls, so in actual fact their pack would cost $24 if it was to be exactly the same. I didn't mind they were $1 more, however, I walked straight out of there when they couldn't answer one question, how many sheets per roll? I mean c'mon, you work at a tissue shop and you don't know how many sheets per roll? oh the packs were conveniently absent of any labelling whatsoever. Even the lady collecting the money couldn't tell me where the 3 ply tissues were. They tricked heaps of people into thinking it was sale, but not me.

    • supermakets will never allow you to buy a box of anything

      yes they do, my sister boxes cartons of Coles brand coffee capsules - 6 cartons, each with 6 boxes (i think) inside. They order it in for her as she was sick of them not having enough stock whenever she went in.

      • Was there a discount? I would imagine all prices are non negotiable regardless of quantity, that's what I was implying. I've never spoken to a manager in regards to bulk buys, but I doubt it though, it's not their store, or their call?

  • Not sure if troll or PR for compare-a-trons. How can you live with items on compare-a-tron? Do you toss dishwashing liquid in your salad?

    • +3

      I just look out for the items of interest to me, the rest I get elsewhere; produce markets, Aldi, etc.

      • +2

        Yeah thats what i mean, but OP say he only buy whats on compare-a-tron, so if bread is not on, no bread for a week?

  • Well this is why we need Ozbargain right? I never buy anything from Coles/Woolies that is not on special, except in emergency.

  • +1

    I find that majority of products that on special are unhealthy food that they are trying to offload. I was checking out cereal aisle today and all heavily reduced cereals have more that %30 sugar. Other specials are salty chips, sweets and chocolates, Omo 2kg that was apparently $20 but no half price etc etc

  • Learn unit prices for everything you buy. "X% off" is only ever (for groceries at least) a really rough indication that something might be a good deal.

    You don't have to do a weekly shop. Every week I'll look at Coles/Woolies specials and it's not uncommon for there to not be a single special that would motivate me to go to the shop on that particular Wed-Tue. There's always more specials around the corner.

    Have a system (and stick to it), keep yourself informed (I love stacking coupon codes that aren't meant to be shared in the first place).

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