Think feeding your family is expensive? It's about to get even more expensive. A string of bad news is going to spell increases at the register.
1. Recently, the US Department of Agriculture released data on crop yields. It shoes that farmers produced less corn and soybeans than originally thought. The response was that prices on those two commodities rose to two and a half year highs.
2. Wholesale costs of wheat, grain, and soybeans to food producers all rose last year, too. For the most part, food manufacturers kept prices low through 2010 but are now faced with recouping profits in 2011.
3. The cost of crude oil is rising.
4. A series of crop failures in several countries is increasing global demand for food.
Exactly what the increases will be is hard to estimate. Experts are pinning the up-charges to consumers somewhere between 3 and 6 percent barring any further bad news. The US Department of Labor estimates that the average family of four spends $8513 per year on groceries, or about $709 per month. If you are lucky enough to spend the average (and not more), you will see increases from $21 to $42 or more each month - or $255.39 to $510.78 extra by the end of the year.
The bad news is that with increases on nearly every product line due to commodity increases like we're seeing, those who will be hit hardest are those at lower income levels. A family earning less spends a larger percentage of its income on food. The increases this year which are forecasted to outpace inflation are levied upon lower-income families more heavily.
While you will see price increases on the shelf prices of products, you will also likely see less value for your dollar due to smaller packages while maintaining the same prices. Either way, you'll pay more to feed your family.
So, what's a family to do? You could follow the advice of retailers who each suggest that their store is the cheapest way to feed your family. (Can they really all be right?) In my experience, most shoppers do not pay full regular shelf prices at premium stores. We buy what's on sale - or hope that the "Always Low Prices" store isn't lying to us when we fill our cart. We'll buy a lot of store brands and might try buying from non-mainstream retailers. These are the very shoppers that spend $709 a month!
Instead of shopping like an average shopper, I advocate applying high value manufacturer coupons (from your Sunday newspaper and the Internet) to the absolute best local sales. You will not want to limit yourself to one or two retailers. The lowest overall shopping bill comes from hitting several local stores and picking up only the best deals at each of them. It's a proven formula that beats paying shelf prices at any retailer.
The question is, how expensive do groceries need to get before you try something different? Would a 10% increase get your attention? 15%? 20%? Your family needs to continue to eat. At some point, you'll need to try something "un-average." I invite you to let NOW be the beginning for your family of a way of shopping that couponers have long enjoyed. Only, this time, technology has made these savings more accessible to everyone.
Most members of the Savingsangel system easily cut their grocery bill in half once they get the hang of it. Check it out now