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Showing posts with label strategic. Show all posts
Showing posts with label strategic. Show all posts

Buying Diapers for less than 8₵ per Diaper

Lately, the UPS driver has been to my house delivering of all things... diapers.  When I walk into my youngest son's bedroom, I see boxes of diapers.  Have I begun hoarding?  Am I taking this stockpiling too far? The best price that I can purchase diapers for locally is $4.99 for a pack of 36 diapers or $0.16 per diaper (this is other than the rare almost free diaper sales with coupons...in the two years that I have been strategically using coupons… this has only happened once a year in my area and I did stockpile at that time).   If I can get diapers for half that price or less ... wouldn't you stock up?   It can be done but Amazon, strategic shopping, coupons, and magazine subscriptions are the key.

The first step is to subscribe at the lowest price possible to the following magazines:
  • American Baby
  • Baby Talk
  • Parenting
  • Fit Pregnancy
  • Parents
Some of these magazines are available for free... while others regularly have their subscriptions offered on the internet for less than $6 a year.  Amazon advertises in these magazines almost monthly.  These advertisements usually have either a 20% discount coupon on diapers or a $10 off coupon on diapers.  The key is to stack the coupons.  Each month it appears that the 20% discount coupon changes its first two digits of the coupon code from YT to YJ.  So if you have a coupon that expires in the current month with a YT coupon code and you receive a coupon that expires next month in one of your magazines and it has a YJ coupon code, you can use both coupons (stacking them) to purchase your one diaper deal.  (One issue though is that you will receive 20% off with one coupon but with the other coupon you will only receive 10% off... I don't know what causes this but I am researching this issue to find an answer)  Usually this can be done in the last week of the current month, as that is when you start receiving the next month’s coupons.  (Please note… Amazon only lets you use 1 coupon set per Amazon id per month... so if you have two YT coupons or two YJ coupons, you would have to do two separate transactions under two unique Amazon ids.)  Now for even better news... you can also stack the 20% diaper coupons with the $10 off diaper coupon.  So you can use all three coupons on your diaper purchase.  That is what I call strategic stacking.

The second step is to subscribe to the Amazon Mom program.  This program is free and gives you a 15% discount on select diaper deals.  Along with the Amazon Mom program, utilize the Subscribe and Save function when you purchase the diapers for an additional 15% discount.

The third step is to identify the diapers that are on sale for the lowest dollar amount per diaper.   In the case of my latest purchase, I purchased the Luv diapers size 3 which is 204 diapers per carton.  The list price was $38.99 but Amazon had the diapers on sale for $34.54 (which is a 11% discount) or 17₵ per diaper.  Now I bought two boxes and my final price was $17.63 for two boxes or $8.82 per box or 4₵ per diaper.  That is a savings from the sales price of $25.72 per box or 74% and a total savings from the list price of $30.17 per box or 77%.  If I had just purchased one box, I would have paid a price of $3.82 or 2₵ per diaper. This is a savings of $30.72 or 89% from sales price or a savings of $35.17 or 90% from list price. However, as the $10 coupons are not often the coupon that Amazon offers, I chose to purchase 2 cartons and spread the impact of that coupon over 508 diapers instead of the 204 diapers.  This can be seen below:

 Per Carton
 Per Diaper
% Savings
List Price
 $          38.99
 $                   0.19

Sales Price
 $          34.54
 $                   0.17

savings
 $             4.45
 $                   0.02
11%
Discounts
Amazon Mom 15%
 $             5.18
 $                   0.03

Subscribe & Save 15%
 $             5.18
 $                   0.03

adjusted price
 $          24.18
 $                   0.12

savings from sales price
 $          10.36

30%
savings from list price
 $          14.81

38%
Coupons
20% Discount Coupons


Current Month 20%
 $             6.91
 $                   0.03

Next Month 10%
 $             3.45
 $                   0.02

adjusted price
 $          13.82
 $                   0.07

savings from sales price
 $          20.72

60%
savings from list price
 $          25.17

65%
$10 Off Coupon


adjusted price
 $             3.82
 $                   0.02

savings from sales price
 $          30.72

89%
savings from list price
 $          35.17

90%
Impact of purchasing 2 cartons
adjusted price
 $          17.63
 $                   0.04

savings from sales price
 $          51.45

74%
savings from list price
 $          60.35

77%
Strategic shopping is the utilization of all aspects of the shopping experience to obtain the lowest possible price for a product.  In this case, it all begins with the preplanning of the subscriptions and the knowledge of the Amazon marketing systems.  So am I hoarding... No.  But I am getting to know the UPS delivery drivers on a first name basis.
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Strategic Shopping 101 #5

Why shop strategically?  I could talk and talk about the benefits of shopping strategically but I believe one example may speak more…

So for example, if tuna’s maximum price is 99¢ a can.  It goes on sale at 79¢ quite often and then  you see it on sale for 59¢…sounds like it is the rock bottom price?  Yet if you had waited just one week, the tuna would have hit the rock bottom price of 49¢ a can.  10¢ difference doesn’t seem like much but if you have a 25¢ coupon and shop at a store that doubles then you could have gotten your tuna for free and if tuna is a product that your family uses a lot of the savings between 79¢ and 49¢ or 59¢ and 49¢ can add up over time…still doesn’t sound like it is worth the effort…then change the item in the example from tuna to a car.  And change the time frame of pricing from six weeks to a year.  If you purchase a car at the wrong time period in the curve and not at the rock bottom price, the negative impact to your family’s savings is substantial at least anywhere from $5,000 to $10,000 difference.  Well of course we shop strategically for a car but why waste time doing it for groceries?  In my last shopping trip, I saved $362 using these principles…I purchased $480 worth of product and only paid $118 ((milk and meat and vegetables made up the majority of the products that I did not have coupons for…this was a preholiday party shopping trip so I purchased a lot of veggies for my veggie trays for three different parties I had to go too)).  Taking this weekly shopping trip and applying it over a year results in a potential savings of $18,000 …even if I only save that much 50% of the time that is a potential savings of $9,000 in a year.  How often do you buy a car in comparison to how often you purchase groceries?  The potential for savings is greater if you apply strategic shopping to groceries.


Strategic Shopping 101 #1  What is Strategic Shopping?
Strategic Shopping 101 #2  How to shop strategically?
Strategic Shopping 101 #3 Information needed to shop strategically.
Strategic Shopping 101 #4 How to shop strategically?
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Strategic Shopping 101 #4

How do you shop strategically?
Now that you have your questions answered…how do you actually shop strategically? It is really quite simple… you take the sales papers determine which items are at rock bottom and that you need based upon your usage number less your stockpile.  Then you check your coupon file to see if you have a coupon for the item.  If you don’t, then you can look online for a coupon to see if one is available for printing.  At that point, you make your list and go shopping.
One thing I try to do is when I use an item, I put it on a list so that when the item comes on sale at rock bottom I know how much I used since the last time.  This has helped me quite a bit to stop over-purchasing situations especially as there is nothing more frustrating than having to throw away perfectly good food because I didn’t use them before it expired.


Strategic Shopping 101 #1  What is Strategic Shopping?
Strategic Shopping 101 #2  How to shop strategically?
Strategic Shopping 101 #3 Information needed to shop strategically.

Strategic Shopping 101 #5 Why shop strategically?


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Strategic Shopping 101 #3

 Let us focus on the questions that you need to know to shop strategically.  They are:
1.       What is the rock bottom price? 
2.       What is the maximum price?
3.       What is the pricing curve?
4.       Which stores have the best bottom line –take home price for your item?
5.       Do you have coupons for the item in question?
6.       Is there any rebates or buying programs for this item?
7.       What is my usage of the item during its cycle?
What is the rock bottom price for an item? 
The rock bottom price for an item is the lowest attainable price (not counting clearance or manager special) that I can purchase the item at.  What I am currently working on for 2011 is a log of the advertisements over the first six to eight weeks of the year so I can determine what the rock bottom prices are going to be in 2011 for the items that I purchase.  As an Accountant by training, I am putting my information into an excel spreadsheet so that I can update it routinely  ((I will post this in mid to late February and will keep it updated quarterly))…you can do the same thing with a simple notebook and paper.  A word of caution though…you have to be aware of the market that you are shopping in as the rock bottom prices can shift based upon market conditions.   What I do is I don’t purchase anything that is not rock bottom price unless I am out of inventory of it, cannot find a substitute, AND have a coupon (that is going to expire)… in other words… I have to have it at that time.   But I have tried everything to not buy it yet… the key to not getting yourself in that situation is to have a good stockpile of products that you use and to pre-plan your menus.
What is the maximum price for an item?
The maximum price for an item is the non-sales price.  You may ask, why you need to know this…well I use it to determine whether or not I am getting a good deal when I am buying something that is not rock bottom pricing.  I won’t purchase anything unless it is 60 to 70% of the maximum price… that way even when I am not purchasing an item at rock bottom price… I am still getting greater than ½ off.
What is the pricing curve?
Most products go on sale either seasonally (like fruit and vegetables) or they are on a six week to eight week cycle.  Seasonally, we will discuss in another post.  Let us focus on the cyclical nature of product pricing.  For the majority of the items that you purchase in a store, the price will fluctuate between the maximum price and the rock bottom price over a six week to eight week time period. The goal is to know what the high’s and low’s for the pricing of the items that you routinely purchase in a six to eight week time period.  Knowing the pricing curve for your standard items enables you to not only know the rock bottom price, to know the percentage of the maximum price that a sales price is, but also an estimate of when you can expect to see the rock bottom price which helps you in the decision of whether to purchase an item at non-rock bottom price and how much you need to purchase to cover your needs until you can purchase at rock bottom prices.  In some cases, if you are at the low end of the curve …you may want to change your need (ie… change what you are making that requires the item) till you can get the item at the rock bottom price. 
Which stores have the best bottom line –take home price for your item?
Knowing the stores coupon policy will enable you to determine if you want to purchase an item that is on sale at multiple stores.   For example… if toothpaste is on sale at Target for  $1.50 and on sale at Krogers for $1.00  and you have a manufacturers coupon for 75¢ where would you purchase it at?  The quick answer is Krogers as you would get it for 25¢ instead of 75¢ at Target…however, if you know that Target has their own coupon and go to Targets website and find a Target coupon for $1.00 on this toothpaste.  Then where would you purchase it at?  Still the same answer for now you would use the Target coupon and still it would be 50¢ at Target versus 25¢ at Krogers.  BUT if you know the Target coupon policy then you would know that Target coupons can be used at the same time as the Manufacturers coupon  (this is called stacking)…now where would you buy it at?  Target for you would get it for free ((and some stores even would apply the 25¢ against your total purchases – that is what is called a “money maker”…I don’t believe Target does that though)).  Therefore knowing the various stores coupon policies is essential to shopping strategically and it is essential to couponing successfully.
Do you have coupons for the item in question?
Coupons are essential to strategic shopping.  Buying an item without a coupon when a coupon is available is essentially throwing your money away.  This is to be avoided if at all possible.  A strategic shopper will change their need for an item prior to buying it without a coupon if at all possible.  Sometimes that isn’t feasible…like for example…milk.  My son is at the age where he drinks a lot of milk daily…milk is an item that rarely has a coupon so how do I purchase it strategically?  I look for milk on sale and freeze it.  My goal is to cover our milk consumption needs until it goes back on sale.  I will go further into couponing on my posts labeled “coupon 101”.

Is there any rebates or buying programs for this item?
Keeping knowledgeable about rebates or buying programs has a strong impact on your final impact to the family income usage.  Rebates are where the manufacturer or store refunds back to you a portion of the item price based upon either the dollar amount purchased during a time period or quantity purchased during a time period.  A buying program for an item is one where the Manufacturer offers either additional access to coupons or other products as a “reward” for purchasing the item.  Taking advantage of rebates and buying programs is like the “cherry” on top of the strategic shopping sundae.  First in the case of a rebate, you buy the item on sale and with coupons then you get paid back a portion of the pre-coupon price …this can be a real money maker (see my example below).  And in the case of a buying program, can have long term benefits to your family income (also see example below) as a buying program can get your name and address on a manufacturer’s mailing list for coupons and special offers.
An example of this impact is a Proctor & Gamble had two different programs running through December last year that I just participated in with my toiletries purchases.  The rebate program was receive a rebate of $20 for a total purchase of select P&G items of $50 whereas the buying program was spend $50 on P&G items and get on the P&G mailing list for the next coupon program which offered over $110 worth of coupons. At that same time, P&G had a coupon that offered a free Oil of Olay body wash with the purchase of Secret deodorant.  And a coupon for $1 off on Secret deodorant…this coupon did not limit the deodorant purchase to “not” trial size.  So I purchased trial size Secret deodorants for $1.29 used the $1 off coupon on the Secret deodorant and the Get Free coupon on the Oil of Olay body wash (price is $8)…my net out of pocket was 29¢ plus tax.  But for the rebate program and the buying program’s purpose I purchased $9.29 worth of product.  Doing this transaction five times plus buying one shampoo with a coupon (net price 49¢) resulted in an out of pocket of $1.94 plus tax yet enabled me to file for a rebate of $20.  This is a money maker of $18.06.  If I had the fore thought I could have used the items for both programs by simply asking for a duplicate receipt…Now I did not have the fore thought to request duplicate receipts.  Take my word for it, in the future I will always ask for duplicate receipts.  But I did have ten of these coupon series so I am ending up with $18 in cash, $100 in product, and $110 worth of coupons to use on future items.  THAT is what I call strategic shopping and a money maker…plus it is all items that I use…I won’t buy deodorant in 2011 but it doesn’t expire and I have all ready given away quite a bit to a local charity.  Next time P&G offers such a deal… I will do shampoo or toothpaste or toilet paper… also items that if I have more than my six week usage, I don’t mind.
One note… No!  I am not a hoarder …I do not buy anything that I don’t have either (a) a standard six week usage quantity, (b) a set charity that I give to and that has zero impact to my family budget, or (c) the positive dollar impact to my family make it worth my while to stock up greater than my standard usage.
What is my usage of the item during its cycle?
The total quantity that you use during a cycle of six or eight weeks can be difficult to determine in the beginning.  What I did was look at my weekly usage on toiletries and tried to find old receipts to determine if my “guestimate” was accurate or not. I think looked at how much I had on hand before I bought anything.  I was amazed by how much I had in the house that I did not even realize was there…too busy buying.   It was strange to see where the amount that I used did not match what I bought in the past. 
On grocery items, I planned out my weekly menus utilizing the sales papers and purchased the items I needed.  Then on standard inventory items like tomato sauce and tomato paste if they were on sale at rock bottom price and I had a coupon, I bought whatever quantity I had coupons for.  In this way, I did buy more than the six to eight week cycle but it enabled me to reach into the pantry without having to run to the store for “emergency” purchases like I used to have to do all the time.  Emergency purchases are always the costliest shopping trips because I usually go without a list and end up buying one or two bags worth of impulse buys that I just had to have.  Shopping without a list is just plain throwing your money away in my case.


Strategic Shopping 101 #1  What is Strategic Shopping?
Strategic Shopping 101 #2  How to shop strategically?

Strategic Shopping 101 #4 How to shop strategically?
Strategic Shopping 101 #5 Why shop strategically?

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Strategic Shopping 101 #2

Okay so how does one begin to strategic shop…. strategic shopping requires a mind shift from the modern materialistic thought process that we seem to have when we shop.  You have to change how you think focusing on the limited funds rather than on meeting your perceived desire or need for an item.  Our culture tells us that we need it now…buy…buy…buy no matter the price or the ultimate impact to your family savings.  I know as I was in that mindset for the first 16 years of my married life.  This mindset led to a house overflowing with unused toiletries (the hand lotion smelled so good… I just had to buy it, despite that I had four other bottles in the bathroom cabinet) and unused cleaning supplies (I just knew that the new cleaning product would make my much hated chore of cleaning the house easier).  Now…I focus on only purchasing items that I need and utilize which are at their lowest price attainable (rock bottom price) AND that I have either a coupon or a rebate deal on…I prefer it when I have both a coupon and a rebate.
Now that you have changed your mindset…which by the way doesn’t happen overnight and will evolve as you get further and further into savings…the next step is how do you shop strategically?  What questions do you need to have answered to be successful shopping strategically?


Strategic Shopping 101 #1  What is Strategic Shopping?

Strategic Shopping 101 #3 Information needed to shop strategically.
Strategic Shopping 101 #4 How to shop strategically?
Strategic Shopping 101 #5 Why shop strategically?

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Strategic Shopping 101

“Strategic shopping is a shopping philosophy/process where a Mom daily, weekly, or monthly (depending upon your shopping style) goes to battle to get the best deal for her family.  The goal is to utilize the system put into place by the Stores and Manufacturers to the benefit of your family.  The point of strategic shopping is to only buy an item when it is at its rock bottom price and to utilize coupons to further reduce this rock bottom price…ultimately your desire is to get the item for free (paying only the taxes).  And to take advantage of any rebates or rewards programs offered associated with the purchase” 
As you read this some of you may disagree with the statement above.  Let me explain my reasoning.
1.        Each individual store developed their respective coupon and discount processes.  Utilizing these processes to the benefit of your family is not doing wrong it is just being a good steward of the money that you have available to spend.  Please note that you will most likely run into either a Manager or a Clerk that will give you a negative attitude (more about this on a later post) about you utilizing their own programs to your advantage.  This is because this type of Manager or Clerk think of the program as a marketing tool… the customer is not supposed to actually use it to their advantage.
2.       Each individual manufacturer creates it’s coupon program.  When you decide to utilize their program is not doing something wrong…it is just once again being a good steward.  The manufacturers see coupon programs as a marketing tool to gain much needed customer data and to increase profit.
3.       Unless you are super wealthy… you have a limited amount of money to spend.  And these days, the prices seem to be increasing exponentially.  So utilizing the store systems and the manufacturers programs to purchase items at their “rock bottom” price utilizing the best coupon deal available will enable you to purchase more items with the limited amount you have to spend.
4.       The reason I use the word battle is because in this case you have to be a General…planning, preparing, intelligence gathering, and implementing your shopping plan always with the eye for taking advantage of any “unknown” deals or specials that you may come upon while you are on the battlefield.

Strategic Shopping 101 #2  How to begin strategic shopping?
Strategic Shopping 101 #3 Information needed to shop strategically.
Strategic Shopping 101 #4 How to shop strategically?
Strategic Shopping 101 #5 Why shop strategically?

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