Use a price book to track the prices of the grocery items you purchase most to make sure you’re getting the best deals.
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What’s a price book and why do you need it? Simply put, it’s a list of the things you buy most often and how much they cost at a few different stores.
I’ve rounded up everything you need to know about making a price book. This price book tutorial will give you the what and how. Most importantly, it will help you see why using a price book can save you money.
When I first started couponing and budget grocery shopping, I read about making a price book. But to me, it sounded tedious and way too much work to check prices, compare them, and maintain the list. (This was back around 2010 when grocery stores didn’t have apps. Yikes.)
After a few years, I finally came around and made one. I like this as a money-saving strategy because you can see the results right away. That makes it easier to decide whether it’s worth your time to maintain.
Setting up and maintaining a price book does take time. But most money-saving tips are always a balance of time and money. It’s important to evaluate any strategy and see if the amount you’re saving is worth the time you’re spending.
Why make a price book?
My main reason for not making a price book was that I thought I was already getting the best deals by purchasing whatever was cheapest. For example, I usually paid about a dollar for a box of pasta. And if it went on sale for less than a dollar, I stocked up.
Here’s where I went wrong and why making a price book is the solution.
I wasn’t keeping track of the price per ounce on everything, so when I needed more pasta, I went back to that dollar-a-box variety. The thing is, those cheaper boxes were also smaller. Once I calculated the price per ounce that I was paying, I realized there was a cheaper option.
After writing down just the top handful of things and comparing prices, I realized that I could easily save $20 a month with my price book. And after using a price book for a while, I’m saving closer to $20 per week (when this post was originally written in 2014.)
Twenty bucks might not seem like much, but that comes out to $240/year at the beginning and closer to $1,000/year after some practice. What would you spend an extra $1,000 on if you had it?
How much do things cost?
If you’ve looked for ways to save on groceries, you probably have heard the same tips a lot. One of those tips is to go meatless. Meat is expensive and an easy way to cut your budget is to eat less of it.
After making a list and checking prices per ounce, I found that plenty of things I was buying weren’t that much cheaper than meat. Here are a few numbers to crunch.
Of course, yours will probably be very different. When I first wrote this post in 2014, prices in Fort Worth, Texas were like this:
- ground beef, $3.29 per pound (at Aldi) ~ This comes out to $0.21 per ounce.
- chicken breasts, $2.49 per pound (at Aldi) ~ $0.16 per ounce.
So what cost more than my meat purchases?
- cereal, $1.99 for a 9 oz. box ~ $0.22 per ounce.
- ground coffee, $2.79 for an 11.3 oz. can ~ $0.25 per ounce.
It turns out that the two most expensive things I buy are actually the things I buy the most often too.
2020 grocery prices
If you’ve never thought about price per ounce before, here are the numbers for the ten things I buy just about every week in 2020.
- “Ritz” style wheat crackers, $1.98 for a 12.9 oz. box at Walmart ~ $0.15 per oz.
- canned tuna, $0.65 for a 5 oz. can at Aldi ~ $0.13 per oz.
- peanut butter, $2.26 for a 40 oz. jar at Walmart ~ $0.06 per oz.
- all-purpose flour, $1.22 for a 5 lb. bag at Aldi ~ $0.$0.24 per oz.
- pasta, $0.82 for a 12 oz. box at Walmart ~ $0.05 per oz.
- canned tomatoes, $0.45 for a 14.5 oz. can at Aldi ~ $0.03 per oz.
- canned beans, $0.48 for a 15 oz. can at Aldi ~ $0.03 per oz.
- milk, $3.19 for a gallon at Walmart ~ $0.25 per oz.
- yogurt, $1.54 for 32 oz. at Walmart ~ $0.05 per oz.
- fresh produce, price varies greatly but my goal price is $1-$2 per pound ~ $0.06-$0.12 per ounce
On some products, the price changes a lot from week to week. I’ve seen a pound of butter as low as $1.39 and as much as $4 at the same store within a few weeks. This makes it even more important to keep a price book. You’ll know when an item is at its lowest price and worth stocking up on.
How do you make a price book?
Making a spreadsheet
My first price book was just a piece of notebook paper, but you could easily make this digital with Excel, Google Sheets, etc.
Start filling it out with the items you purchase most often. You can be as specific or general as you prefer.
For example, I always buy the Great Value milk, so mine just says “milk.” If you’d rather write in the brand names or varieties, there’s room for that.
I’m just comparing prices between Walmart and Aldi, so I wrote a product name on every other line so I could write both stores’ prices beside each other. Alternatively, you could use one page per store. Or if there’s only one place you shop, you don’t have to worry about that column.
There comes a point where comparing prices for dozens of products at 6 stores is going to take up so much time that the money you save is probably not worth it.
Tracking prices and sizes
Next, you’ll need to write in the price and size for every item.
The easiest method is to check your receipts. Every week after you do the grocery shopping, save your receipts. Sit down for just five minutes and write down the most important things you bought, the price you paid, and the weight in ounces.
Every week, add a few more things to the list. After a month or so, you will have a good list of the things you buy most often.
Using the price book
You can use the price book to make your weekly grocery list and stick to a budget. Just be sure to check prices regularly and update your list.
When you shop, stock up on things at their best price. Most stores rotate through sales. Using a price book will help you calculate when the lowest prices occur. Then you can buy as much of an item as your budget allows to stock up.
Other places to price check
Amazon Prime Pantry
I have to add that I might not have done this little test back in 2014 at all if Amazon hadn’t added a feature called Amazon Prime Pantry. It is only available to Prime members but includes just about every non-perishable item that you would buy at a regular store.
I browsed it and the prices seemed really good, but I wanted to compare it to what I was already spending. I found some items to be a much better deal at Amazon and others to still be better in the store when on sale.
You order by the box, which can hold up to 45 pounds, and there is a flat shipping fee. Each item that you add takes up a percentage of your box. It doesn’t have to be full, but shipping is the same whether you fill 10% of a box or 80%.
I’ve ordered several boxes and always been happy. You can stack deals at Amazon.com just like you would at a grocery store. Amazon discontinued Prime Pantry boxes, but you can still purchase those same items, just without the pantry box minimum.
If you’re not already an Amazon Prime member, you can get a free 30-day trial. I’d love for you to use my referral link to sign up.
Grocery apps
When I first wrote this blog post in 2014, grocery stores didn’t have apps or prices online. After 2020 you can probably make a price book and compare prices at multiple stores without leaving the house.
Note that some stores have an app price and an in-store price. Be sure you’re comparing the price you’ll actually pay if you’re not placing an order to pick up.
Check out some other fun and creative ideas on One Mama’s Daily Drama:
That’s a great idea!
Thanks for joining in with this months #FabulouslyFrugal x x