I started to post this as a mailbox post, but because the topic is so broad and I'm asked so many times what I consider to be a "good deal" on something, that I wanted to dedicate an entire post to price points. There are several things you need to know when trying to decide if something is a good deal or not. This should help.
The Basics
1. Location, Location, Location:
One thing to consider is that the cost of goods varies nationally, regionally and even locally. Keep that in mind when shopping and setting your personal price points. For instance, in some areas stores will have cheese on sale for $.99, here where I live the same chain of stores will have the same cheese on sale for $1.49. Keep this in mind wen you're shopping and looking at deal matchups. I base my ad matchups on the prices locally for me. If you're in another region, your prices may vary.
2. Sales, Coupons, Doubles, etc:
I calculate my price points on items by factoring in a simple formula. Not all stores have store coupons. Not all stores double coupons. There's many factors that can vary this formula, but here it is:
Sale Price - Coupons - Coupon Doubles = Price Point.
Example: Sargento Cheese Shreds $1.50 -$.50/2 coupon -$.50/2 double = $1.00 each
Now, if your store doesn't double coupons, you're looking at $1.25 for the same cheese.
3. Experience:
If you are new to couponing or you have only been couponing for a short period of time, your price points are likely to vary from that of a strict couponer. For instance, if you're used to spending $3.99 for a box of cereal at the store. Buying a box on sale for $2.49 is going to be huge to you. If you've started clipping coupons and using them, you're going to be excited about cereal going on sale for $2.49 and knowing you have a coupon for $1.50/2 so you're now paying $1.79. (You just saved 50% on cereal). But, if you're a strict couponer, you're going to think about cereal going on sale for $1.49 during a mega event and using that same $1.50/2 coupon, paying $.74 for that SAME BOX of cereal! This is when you're going to stock up on cereal!
Price Points
I created a document here where you can view my personal pricing guidelines for items. I've got two price points listed for each item. The first is the "sale price". The sale price is what I am willing to pay for an item if I just need one or two of the item.
The second column has my stock-up prices. These are the prices I try to meet or beat if I'm going to stock up on an item.
The price listed in both columns is factoring in the amount paid for the item after all coupons and sales. You'll notice there is a high number of items on your routine shopping list you can get for FREE when you shop smart and pair sales and coupons! Please feel free to print this list and take it with you when shopping. It will help to get you thinking about whether you're getting a good deal or not!
