Years ago, I came across an idea to help save money at the grocery store.  A price book allows me to track prices of commonly purchased items.  Why would I want to do that?   So I can determine what the best price is, and where I can find it.  This useful tool takes time to set up, but I have found it well worth the time invested.  I easily save hundreds of dollars each year just by knowing the common sale prices of things I purchase all the time.

A price book can be created with index cards, in a notebook, or with a spreadsheet. I use Excel to store my price book because I like to sort the information different ways, and I like the quick calculations.  It is necessary to have it with you while shopping, so I print mine off and keep a copy in my purse.  You don’t have to track everything you buy.  Choose the top 10 items to get started, and add more as time goes by.

When I first started my price book, I gathered recent receipts and current store advertisements.  I reviewed the receipts and ads, then circled the items I purchased most often.  I created a spreadsheet with columns to track item, size, unit price, total cost, store and date purchased.

It’s important to track total cost as well as unit price so you can determine the best price on different sized products.  A pack of name brand diapers may break out to be anywhere from 21 cents/diaper to 28 cents/diaper depending on the different size packages.

In my price book, I track things like milk (we drink 2-3 gallons a week), cereals, flour, sugar, disposable diapers and fresh produce.  There are about 20 items that I purchase regularly, and another 20 or so that are purchased often enough that it helps to track prices.   I am brand loyal for items like diapers, but I’m willing to buy the item with the best price for most items.

I am fortunate that I live in an area with 4 different grocery stores within a 5 mile radius.   To give my price book a boost, I used the ads from different stores to plug in prices of different items so that I wouldn’t have to visit the stores for the information.   Living near different grocery stores also allows me to choose the stores with the best deals for shopping each week.

When I’m in the grocery store, I check my price book against the store’s prices.  If the price is especially higher or lower than the prices I have listed, I add a new entry for that item.  It’s not unusual to have 10 lines devoted to one item.  Since I track multiple stores, I need to know how much the item is in each store, as well as the lowest price offered.  Many items go on sale during a 4 – 8 week cycle, which is why I track dates as well as the other information.  A bag of flour was $3.79 last month, but now that we’re getting close to the holidays, I found it this week for .99 for a 5 pound bag.

I stock up when I see a great price on an item.  I stock up on items like toilet paper, sugar, and canned goods regularly.  I don’t have a large pantry, but I can fit more cans by stacking them on the shelves.  My pantry is organized by type of food, which helps me find things easily.

A price book does take time to develop, but it quickly becomes a habit.  It’s gratifying to save money at the grocery store simply by tracking prices and sales!  Next Wednesday I’ll write about increasing your savings more by careful use of coupons.