The Truth about supermarket price wars: 5 tactics to avoid

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Last night's Panorama investigation into the tricks used by supermarkets was an eye-opening insight into the current trends in retail anthropology - with a few words of caution worth pondering. We're all pretty clued up on these tactics (or think we are) and generally think we're above them, but can you honestly say you never get taken in by the hype? Read on for a list of some of the sneakiest supermaket swizzes out there.

1. What's the big deal?

Supermarkets will often draw shoppers' attention to a 'great' price by using a big sign saying something like 'wow' or 'only £2' or 'now £3'. This should always get you on your guard: the reason being there is no indication as to the item's original price, or to why it is being highlighted. Often, it's just a product that the shop wants to shift, and many consumers are so used to associating these labels with cheap deals that they'll assume they are getting a bargain. Research has shown that in many cases, the price being flagged is the same or sometimes more than it was originally - or indeed than the price you'll find it in a rival shop.

2. Bigger isn't always better

Have you ever been tempted to spend a little more for a 'value' pack that will last you longer? Supermarkets introduced this shopper logic decades ago, but they haven't always played fair. Sometimes, bigger packs are sold on exactly the same price scale as the smaller ones, so make sure you compare the prices of both to be sure that two packs of the smaller item won't be exactly the same price as one at half its size. Sometimes, weight-for-weight the bigger packs can actually cost more!

Think also about how much of the product you'll really use: unless you have a large family, many of these items will simply go off in the fridge, even if they were cheaper than the smaller pack. For couples or singles, true value products are only really worth buying if they have a very long shelf-life, so bulk-buying value detergent will be much more use to you than value margarine. Same rule applies to 'BOGOF' buy-one-get-one-free.

3. Rewards on unnecessary products

Do you hold a loyalty card? Used to your advantage, these can give the odd handy discount that will save you some pounds on stuff you were going to buy anyway. But remember that the shops watch your every shopping move to push you towards more products you may or may not want to buy - so beware of getting railroaded into buying items you didn't already want or need by the allure of extra points.

I admit that I'm a real slave to my points, because fundamentally, I just love watching numbers go up. It probably wouldn't matter to my brain whether the points related to actual money or not; I'd still be addicted to the 'game' presented by loyalty schemes and bullied into buying things as a result. On a crude level this is a human need that all these schemes exploit, and I am exactly the sort of consumer schmuck they do well out of. So try and be aware of when you're getting taken in!

4. Fancy packaging

This is one to be aware of around Christmas and other seasonal holidays in particular: Many supermarkets 'dress up' products that they normally sell at a lower price, then slap on a surchage for the 'added value'. Cheeses and other products promoted at this time of year are particularly vulnerable. You can find price differences of up to 120% on seasonal food that is still being stocked at its usual price in a less prominent position, so make sure you check for cheaper alternatives when doing the Christmas shop

5. Look beyond eye-level 

One of the simplest but most effective tricks employed by supermarkets to make us spend more is putting the costliest products at an average shopper's eye level. Check out these tables which show how various supermarkets position their goods to ensure that we look at the most expensive products first. Cheaper goods are often placed on the bottom shelf, so try looking down to see the prices drop. The same school of thought has led to the placing of kids' products at grab-level for children riding in trolleys (ever wondered why so many tantrums take place in the aisles as parents protest?) and to positioning of products that go together in the same shelf, e.g. tea and biscuits.

When is a supermarket deal a real bargain?

It may seem like the supermarkets are out to get us, but you can play them at their own game and benefit from deals and promotions. If you follow a few simple rules...

  • Take advantage of offers on products you have to buy regularly. If you've got several feline friends, for example, a bulk-buy deal on cat food is well worth stocking up on, and you'll do well to pick up as much as you can carry. Same applies to nappies, toothpaste, favourite wines(!) - anything you know you won't suddenly stop needing.
  • Use price comparison sites when you're shopping for a larger item like a TV or kitchen appliance: these are often on special offer at the best price in one or another of the major supermarkets
  • Shop around to avoid getting too blinkered by one particular supermarket's deal structure or loyalty scheme (but get cards for all of them to benefit from any good deals that crop up)
  • Smartphone shopping. If you're on a tight budget and are not too proud to be seen comparing prices (the recession has made most of us pretty open about wanting to save pennies), check prices online using your phone as you shop. Particularly handy for getting to the bottom of 'wow'-style pricing. 
  • Flirt with own-brand. The difference between own-brand and branded products can be highly subjective: in some cases we have to admit that the pricier branded options taste better, but we all have that own-brand product we actually prefer (*cough* Jaffa cakes). Try all the items you'd normally buy from the supermarket's own range, and stick with ones that are just as good.
  • Never shop when you're hungry. An oldie, but a goldie. It will not end well!

[Image: Whologwhy]

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