Shedding Light On Grocery Store Markups
Our collective quest to get the most bang for our buck at the grocery store is never truly finished. In today’s blog post, we’re continuing that quest by exploring the subject of grocery store markups.
While markups are an inescapable part of the retail experience, not all markups are created equal. And nowhere is this more true than at the grocery store, where markups can vary as widely as the variety of items they sell!
Today I’ll be shedding some light on some of the steepest markups at the grocery store and offering tips and alternatives that can save you money. While the average grocery store markup is around 15%, individual items can be marked up a lot more than that — up to 75% in some cases. We’ll look at some of the items with the highest markups below.
For even more tips and tricks for saving money at the grocery store, be sure to check out my eBook Grocery Guru, available in my shop and free to download for OGT Plus members!
7 Of The Highest Markups At The Grocery Store (And How To Avoid Them)
1. Batteries
Most people only buy batteries when they need them, and retailers know that. Markups on batteries are relatively high (about 70%), because they know you’re probably going to buy them regardless of the price!
You can get around the steep grocery store prices for batteries by buying in bulk at a warehouse store like Costco or Sam’s Club. Making this simple switch can save you up to 40 cents per battery!
2. Produce
Retailers also mark up produce pretty steeply, by around 50-75%, mainly to protect their profit margins from losses due to spoilage. (On average, about 20% of produce at grocery stores gets thrown out due to spoilage.)
An easy way to save money on produce is to focus on what’s on sale at the time you go grocery shopping. Sale prices on produce are typically applied to items that are available in abundance and are in-season in the location they’re grown. (It’s also smart to stock up on produce when it’s on sale and freeze it to use later!)
Related: This One Simple Trick Will Save You A Fortune On Groceries
3. Pre-Cut Produce
If the markup on produce is considered high, then the markup on pre-cut produce is almost off the charts! You can pay up to three times more for the convenience of pre-cut or pre-sliced fruits and vegetables than what you’d pay for those same fruits and vegetables in the produce section.
As convenient as pre-cut fruits and veggies can be, those markups can eat up a good portion of your grocery budget. To save money, plan to take a few minutes when you get home from the supermarket to cut your produce items.
4. Bottled Water
No list of items with the highest markups would be complete without bottled water. No matter how much you buy at once or the size of the container, there’s no getting around the fact that you’re paying hundreds of times more for bottled water than you would for tap water.
If you regularly buy bottled water, you can start saving money immediately by carrying and refilling a reusable water bottle instead. (And that would still be true even if you invested in a water filtering dispenser too!)
5. Cereal
Cereal is a staple in many households, including mine! But our love of breakfast cereals can come at a cost, to the tune of a 40% markup on average.
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Luckily, there are plenty of ways to save money on our favorite breakfast cereals! Sales and coupons are extremely common for cereal, so you won’t have to wait long for a good deal to stock up.
And don’t forget about store brands — these low-cost alternatives are often just as tasty as the name brand stuff!
6. Baked Goods
As convenient as those ready-made pies, cakes, and muffins in the bakery section of the grocery store can be, they aren’t always worth the cost. In fact, the markup on baked goods is often around 100%!
Many of the items are easy to replicate at home, whether from scratch or using a mix from a box. You’re sure to save quite a bit of money by going the homemade route for baked goods!
7. Spices
I dread running out of any of my go-to dried herbs and spices, simply because I know I’ll have to shell out $5 or more to replace them! Spices have consistently high markups, but there are a few ways to save money on them.
One of the best money-saving options for spices is buying in bulk, which you can typically do at health food stores like Whole Foods and some standard grocery stores. The prices are much lower for bulk spices versus the jarred ones, plus you have the freedom to buy as much or as little as you need.
You can also save money by picking the generic or private label spices over the name brand options.
More Ways To Save At The Grocery Store
- Save every time you shop by checking out the money-saving tips in these posts:
- 11 Costly Mistakes You Make At The Grocery Store
- 10 Tips (And 1 Freebie) That Make Grocery Shopping Easier
- This Takes The Guesswork Out Of Grocery Sale Prices
What’s your best tip for saving money at the grocery store?
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Regarding the dried spices, I have found that a bit of careful looking on Amazon can save you money. I used to purchase most of my spices at Sams Club, but over the years their selection has become pitiful, and buying those tiny and grossly overpriced small jars at a grocery is a complete waste of money. But when looking on Amazon, don’t just look at the first page of whatever you are looking for. I’ve sometimes found the same product a few pages in at a lower price. Beware, however, that sometimes a seller will try to fool you with a low product price, but then ad shipping. If you are a Prime member, just click on the Prime button to filter the products.
Please log in or create a free account to comment.Hello everyone,
Please log in or create a free account to comment.I find less expensive spices over on the Mexican in a bag spices. Some are the ones you can buy in the bottles. Save and clean the bottles and tape the label from the cellophane bags on the bottle.
It will save you money.
Spot on, I have found this to be true. I also shop my local ethnic foods markets – they have prime condition fresh herbs and produce compared to supermarkets and prices are comparable or better, as well as dry spices/herbs. My tip: Buy quality fresh dry spices and herbs in small quantities and often – amounts that you’ll use up in about three months max. You might pay a bit more per oz/gram, but once you’ve tasted the difference, you’ll never want to go back to the volume packaged low quality herbs and spices again no matter what the savings are.
Please log in or create a free account to comment.My late husband did all of the food shopping and was conscientious about cost. He was retired and would go to several stores to compare prices and take advantage of their sales. I needed bay leaves and he about went into sticker shock but kept hunting. He found them at the local co-op sold by the pound and was able to buy a dozen for 30 cents! And they were very high quality
Please log in or create a free account to comment.In regards to store brands being just as good as the National brands – I worked at a meat packing plant and I know those same plants made both National brand meat and store brand. The stores contract with companies to make the store brands.
Please log in or create a free account to comment.In other words – One day they were putting their own labels on the meat to sell nationally – and the next day they were putting store labels on the same product.
So, Jillee is right when she says they are just as tasty
In my early trucking days, I would sometimes deliver packaging or pick up loads of products at food processing plants. Sometimes, while waiting to be load or unload, I’d have occasion to speak with some employees in the plants, being the gregarious (and nosy) fellow that am. I discovered that in many cases the store brand products, although packaged or canned on the same lines as the name brands, have differing amounts of spices and/or seasonings added, usually equating to less. And sometimes a lower grade of product is used. As a result, the end product may not actually be identical to the name brand at all.
Please log in or create a free account to comment.I am fortunate to have a large pantry (dark and cool) so I store large Chef jars of herb/spices/salts in pantry & use to refill my spice jars in kitchen. Tried the ones in resealable bags but was too time consuming & unorganized to store and keep track of the 50+ bags I had. I buy & use HQO (High Quality Organic) brand which I purchase online. I cook all the time and use a lot of spices but did learn that I really do not use or like some spices enough to justify their purchase, like cloves, sesame seeds, tarragon and allspice. Others are just too expensive for the little joy we get from them – cardamom & lemon peel, so I use substitutions as needed. I buy the turmeric and ginger powder and share it with my friends as I do not use enough of it to use all within 6 months but is such a better price in the large jar. Also mix my own spice mixes, rubs, dip mixes with these spices. I also have a small indoor herb garden and dehydrate any fresh herbs I do not use immediately.
Please log in or create a free account to comment.We’re very lucky to live close to an HEB. They have bulk spices. This is especially helpful when a recipe calls for a pinch of this or a 1/4 tsp of that and that just happens to be a spice I don’t use often (think turmeric or lemon pepper). Also, we pick up batteries at our local Dolar Tree and keep them in the fridge. Maybe it’s just me but they seem to last a long, long time.
Please log in or create a free account to comment.I agree with a lot of stuff, I will be so glad when this whole covid mess is over. You can’t even use the salad bar option for some small amounts of pre—cut vegetables.The reason why name brand cereals are so expensive is because the manufacturer’s pay the stores money to display cereals etc in a certain spots etc..I’ve actually tried the store brand of batteries. But they don’t hold up. as good as the name brands for stuff I use everyday like my light -up,makeup,mirror.
Please log in or create a free account to comment.We oftentimes find clearanced bread items that are still perfectly good and if they need to be used right away we just stick them in the freezer and pull out as needed. Spices are something that most people shouldn’t really buy in bulk depending on what the spice is because it’s only going to get older when not being near ‘use by’ and there are no guarantees when buying even from Amazon. I buy many of my spices from ethnic food stores where they do get turned around quickly and the price is considerably less than from a grocery store. I save all of my containers and refill as needed. I don’t believe most spices go bad even if they’re years past the preferred date. I just use a little more of the spice and they usually are absolutely fine. It can be a racket for people who think they have to dump spices & dried herbs. Another good place to buy spices that you actually will use is from Sam’s and Costco.
Please log in or create a free account to comment.I spend at least $30 per month on batteries. I have the small push-button lights under my cabinets, the air fresheners that spray every so many minutes in my basement and back door area, and small flashlights are used often by me, due to eyesight problems. I have found that the only one that lasts is Duracell. Can you get good, name-brand batteries from these big-box places? I enjoyed this post, although it makes me sick when I realize what these stores get by with and how much it really hurts the low-income, little guy like myself! God bless…
Please log in or create a free account to comment.Be really careful with “pre-cut” stuff! Last summer, I had ordered a watermelon on my delivery order. They were out, so they gave me some “pre-cut” as a substitute. I got REALLY sick from it! I wonder just how careful they are when cutting up stuff? I never buy any “pre-cut” generally.
Please log in or create a free account to comment.Thanks for the warning Deb! I always have wondered about the cleanliness of the areas that they cut the produce on. Just another reason to cut produce yourself. :-)
Please log in or create a free account to comment.Many herbs can be grown in a very small space or pots. Read up on ways to dry them and you can have herbs year round. Several people have commented that they buy spices in bulk. Jillee has written about this in the past. Your herbs and spices can lose potency over time. Try not to buy more than you will use in a few months. When traveling, I like to buy spice blends that are used in that region’s cooking. When I get home, I freeze those for later use.
Please log in or create a free account to comment.spices are blended with heavy metals and other unsafe ingredients. oregano has been found blended with grass even.
Please log in or create a free account to comment.that’s why I always buy herbs and spices organic and in bulk. amazon is very good to find what I need.
Amazon is killing us just as quickly as your spice worries! They are working on getting the corner market on every single thing we have a need for. They are killing our small businesses, grabbing them up when they are ailing, without even giving them a chance to pick themselves up! Also, they mark stuff up. Almost anything you buy from them, I can find somewhere else cheaper. I cringe when I hear people boasting about being able to “buy everything I want at Amazon!”If Amazon was the only place I could find a particular item, I would find a substitute product from somewhere else or go without.
Please log in or create a free account to comment.We love to travel. When we went to Israel I would stock up on incredible spices. I always pack ziplock freezer bags to transport delicate items. Sometimes I got stopped at customs but I always got thru ok. Of course this was before COVID days.
Please log in or create a free account to comment.Spices do lose flavor over time, so if you buy in bulk, keep the jars sealed TIGHT, and store them in the freezer. Heat isn’t good for herbs and spices, so try not to keep them too close to the stove. I know it’s a nuisance to have to cross the kitchen when you need something, but it’s only a few steps. When I buy celery I cut off the leaves and put them in a mesh bag – an onion bag is perfect – and hang that in the furnace room. When we make soup I can grab a handful and crush them. Instant chopped celery leaves!
Please log in or create a free account to comment.I used to use every one of these tricks and more to save when buying for the family. I am alone now so I had to re-learn how to shop for one. Very different and surprisingly more costly. Trying to avoid waste and freeze extra meals. Buying salad at salad bar is very smart. I keep the heavy stuff at home like dressing and cheeses and get a variety of greens and veggies with no waste. Have a frugal 2020!
Please log in or create a free account to comment.Paulette…I spent my “raising family” years ALWAYS cooking and baking. So much that everyone (adult friends and my kids’ friends) would come to visit OFTEN! Today at 65, it is me and my adult son, who is disabled. I keep saying that someone needs to start a chain of stores that cater to the SMALL families! Everything sold there would be appropriate portions for one, two, and MAYBE three people. Everything. I know that there are many people that think it is crazy, but I really think that it could make it big! Lots of small families in this world wasting lots of food!
Please log in or create a free account to comment.I usually buy herbs and spices via Ebay direct from spice merchants, you can buy from 50g upwards and herbs and spices don’t weigh very much, I saved many glass jars over the years and use these as the tiny pre-packed herb/spice jars are too small for my needs. I end up on average 150% more product at a lower cost and recycling the jars is good for the environment.
Please log in or create a free account to comment.The site that I like for spices is “Spice Jungle”, some odd things that make sense to me, such as mesquite and vinegar dust that I can reconstitute in the medium of my choice @ the strength that I like without too much water. The problem I see with jars, even small ones is the head space that traps air in the jar with the spice, I prefer plastic bags for storage.
Please log in or create a free account to comment.I really only use Ebay as a last resort as they charge a rather hefty fee to the merchant to use the site.
I only buy re-chargeable batteries. I buy on eBay usually from China. Buy a 12 pack for what 4 would cost at Walmart.
Please log in or create a free account to comment.Also, spices. General spices can be bought at Dollar Tree for only $1!
Great point! This is a very good idea if you are only buying for one and it creates less waste. Thanks for sharing!
Please log in or create a free account to comment.I so agree with Marlene. Saving money/shopping wisely is all in the perspective of each person’s situation. Some purchases are based on waste like Marlene pointed out and some are based soley on income or lack thereof. For example: no one needs spices if you can barely afford a loaf of bread. I’d rather have toilet paper than a cake. I’ve been poor and I’ve been in the lap of luxury. But it’s hard to forget the skills learned when you could barely afford a loaf of bread. It’s hard to see any purchase as a good price or a savings when it’s not really needed. It’s just ‘an extra’. Now I’m all for saving money and posts like this are a good place to start whether you need to or not. You never know; you might be able to save up enough for a trip to that far away place you’ve always dreamed of visiting. Just by cutting back on your costs on things not exactly necessary in order to fulfill a dream. It’s a matter of personal perspective on the value of things. And it’s easy.
Please log in or create a free account to comment.Used to work in a folding carton facility and learned many “name brand” cereals are actually repackaged in different boxes, sold as “off brands”. Experiment and you’ll find “Cheerios”, mini-wheat and flaked cereals far cheaper under different labels.
Please log in or create a free account to comment.I don’t buy several of these things, but spices are always a problem given that we don’t live near a Whole Foods or even have an Aldi’s in a convenient location. One thing I have noticed in some grocery stores is that the Hispanic Foods section has many of the spices that are on the spice aisle, but for much less. Apart from this I’ve considered ordering in bulk online if the prices are good, and the quality is probably much better as they will be fresher. If more customers start ordering spices through the mail, the grocery stores will have to change their tunes to compete.
Please log in or create a free account to comment.Great ideas! Thank you
Please log in or create a free account to comment.I work for a major grocery store in our area. I have to agree that they mark the Pre-Cut fruit and vegetables with dips etc way up . We tend to do a lot of our own at home for entertaining. Cereals I tend to buy the generic brands which are comparable to the name most of the time. I found out awhile back from my Sister in-law that you can save a lot of money on stuff like gluten free stuff by getting the stuff from Aldi. There prices are much more reasonable and cheaper . I would probably use them more if it were closer to me. Bakery stuff we rarely ever buy unless it’s a good deal.
Please log in or create a free account to comment.Spices are often much, much, much cheaper at a local Asian or Indian grocery store — if you have them. I’m jealous of a friend that does when she talks about how much she got some of her spices for.
Please log in or create a free account to comment.Good tip! Thanks!
Please log in or create a free account to comment.Spices are so “iffy”. I read don’t buy off brands, they often use even grass for fillers. I don’t trust anything in that line from China.
Please log in or create a free account to comment.Thanks for the suggestion. I’ll have to go and ck out prices.
Please log in or create a free account to comment.Yes! The markup on pre-sliced fruit and veggies is absolutely insane. And I try to buy generic anytime I go to the grocery store (Smith’s/Albertson’s, not necessarily Sam’s/Costco) because of how much you can save. It’s really mindblowing. Thanks Jill!
Please log in or create a free account to comment.I find that the Costco Kirkland Signature generic brand is often organic and higher quality than “name brands” , at an enormous savings
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