Budgeting and Shopping Strategies

Establish a Food Budget A budget is a plan for managing money Can help consumers get more for their money Good PLANNING can help consumers create tasty, nutritious meals within their budget

Shopping Strategies Create a categorized shopping list Take calculator Helps consumer remember what he/she needs Decreases time in the store Saves money Take calculator Helps keep track of spending Create a categorized shopping list Makes your shopping more organized and easier to complete Take calculator Helps you keep track of what you spend while you shop. Avoid shopping hungry or tired You will spend more money if you shop hungry or tired. Shop alone You will save money shopping alone. No children telling you they want this and that.

Shopping Strategies cont. Avoid shopping hungry or tired Customers spend up to 15% more on food whey they shop hungry because they give in to impulse buys Shop alone Not being persuaded by others to make an impulse buy

Shopping Guidelines and Advertising Strategies Loss leaders Sale items that are sold at a low price to get customers to the store to purchase the item in hopes that the consumer will also purchase other items Coupons Coupons offer savings on specific products They should only be used on products that a consumer would purchase anyway Rebates Rebates are a partial or full refund from the maker of an item Consumers pay the full price for an item, complete the rebate coupon and send it to the manufacturer and are then given a check for the rebate Beware of Loss leaders They get you into the store to purchase the bargain and often end up buying extra items. Impulse buying Items you did not intend on buying Most popular and profitable items are at eye level to encourage buying End isle displays Layout of store Set the most sought after items in the rear of the store. This forces shoppers to walk past other items that may be purchased on impulse. Shelf placement of items Place more popular brands and more expensive brands at eye level

Shopping Guidelines and Advertising Strategies Impulse buys Most grocery purchases are on impulse or unplanned Grocers typically make more money on these impulse buys than on sales of staples such as bread, milk, and eggs Layout of store/shelf placement Layout: Common food items are often placed at the back of the store to force customers to walk past merchandising temptations Shelf placement: best sellers and other leading brands are placed in the “Bulls-Eye zone” front and center at eye level Coupons usually offered on national brands; check cost of other brands to compare. Use coupons when the final cost is less than other comparable brands/products. Coupons are often used to get consumer to try new products. Consumer often purchase items they don’t use/need because of the coupon incentive. Rebate coupons – often require original receipt and proof of purchase. Hard to sometimes track; additional time and postage incentive.

Shopping Guidelines and Advertising Strategies Package dating Some packages are stamped with a date that indicates freshness and how long it can safely be used Sell-by date: last day the product should remain on the store shelf Use-by date: last day on which the product will still have high quality Define: Price per unit – ounce, quart, pound or other unit to show the best value. How to figure out: Unit price/cost per serving = total price divided by the number of units/servings. Where to find on label: Unit pricing is often figured and listed on the store shelf.

Shopping Guidelines and Advertising Strategies Unit pricing/cost per serving Unit pricing is the cost per ounce, quart, pound, etc. Usually listed on the shelf label Calculated by dividing the item’s total price by the number of units Interpret package information Food labels are part advertising and part information Understanding labels and distinguishing facts from claims is an important shopping skill Unit pricing is a way to compare brands and also different size packages/containers of the same brand. Largest package isn’t always the least expensive per unit/serving size. Larger package even if it is cheaper per unit not always best buy if the product isn’t going to be used before the expiration date or spoilage.

Practice Unit Pricing Which is the better buy? 7-pack of plastic rings for $0.77 8-pack of plastic rings for $0.80 A 4-pack of wooden boxes costs $4.60. What is the unit price? $1.15 per box Answer: 8-pack of plastic rings for $0.80* Answer: $1.15 per box

Practice Unit Pricing Which is the better buy? 7-pack of ice cream bars for $1.12 9-pack of ice cream bars for $1.53 A 6-ounce tube of paint costs $15.42. What is the unit price? $2.57 per ounce Answer: 7-pack of ice cream bars for $1.12 Answer: $2.57 per ounce

Practice Unit Pricing Which is the better buy? 4-pound bag of oranges for $5.88 6-pound bag of oranges for $8.34 A 2-foot piece of copper pipe costs $1.30. What is the unit price? $0.65 per foot Answer: 6-pound bag of oranges for $8.34* Answer: $0.65 per foot

Summary Become a better consumer by understanding what information is on food labels. Be careful with your money. Budget wisely. Be cautious of advertising strategies. Understand how unit pricing works.

Next Two Class Periods Food Label Lab Comparison Lab Name brand vs. store brand Food Label Lab Make Calzones and create a label for your food.