The cheapest item on the shelf isn’t always the best deal.
And the item with the biggest discount sticker isn’t necessarily the best deal either.
When you’re standing in the grocery aisle comparing a store brand with a name brand, the real question is pretty simple:
What am I actually getting for the money?
Sometimes the store brand is an easy winner. Other times, the name brand is worth paying a little more for. The trick is knowing when the difference matters and when you’re basically paying extra for the label.
Start With the Price You Actually Pay
The first mistake is comparing the regular price of one product with the sale price of another.
Compare the final prices.
If a name-brand cereal is normally $5 but is on sale for $3.50, while the store brand costs $2.75, the name brand isn’t automatically the better value just because it has a sale sticker.
You are spending 75 cents more for it.
Maybe that’s worth it to you. Maybe it isn’t.
That’s the decision you want to make.
Look at the Unit Price
Package sizes can make grocery shopping surprisingly confusing.
One box might cost $3.99 while another costs $4.99, making the first one look cheaper. But if the $4.99 box contains twice as much food, it’s obviously a different calculation.
That’s why the little unit-price number on the shelf can be so useful.
Look at the price per ounce, pound, quart or individual item.
This becomes especially important when comparing store brands with name brands because they often come in different package sizes.
A cheaper package isn’t necessarily cheaper food.
Don’t Assume the Name Brand Is Better
Some people have strong preferences for certain brands, and that’s completely fine.
But if you haven’t actually compared them, don’t assume the name brand is automatically higher quality.
Store brands have improved considerably over the years, and there are plenty of products where the difference is small enough that you may not notice.
Things like:
- Flour
- Sugar
- Salt
- Rice
- Pasta
- Canned beans
- Canned tomatoes
- Frozen vegetables
- Basic spices
These are often good places to try the store version.
If you can’t tell a difference, there’s not much reason to pay extra.
There Are Some Foods Worth Comparing More Carefully
Not every product is interchangeable.
Coffee is a good example.
If you’ve been drinking the same coffee for years and genuinely prefer it, saving 50 cents on another brand may not be worth it.
The same goes for things like certain sauces, snacks, cereals and specialty products.
You don’t have to buy the cheapest version of everything.
The goal is to figure out where the cheaper option is perfectly acceptable and where you’re willing to spend more.
Try the Store Brand Once
If you’re curious about a store brand but don’t want to commit to a huge package, buy one.
That’s really the easiest test.
Try the store-brand pasta.
Try the store-brand cheese.
Try the store-brand canned tomatoes.
If you like it, you’ve found an easy place to cut your grocery bill.
If you don’t, go back to your usual brand.
You’re not signing a lifelong contract with the store brand.
Coupons Can Change the Math
This is where the comparison gets more interesting.
A name-brand product may normally cost more, but a coupon can bring it below the store-brand price.
For example:
Store brand: $2.79
Name brand: $4.49
Name brand with $2 coupon: $2.49
Now the name brand is actually cheaper.
This is why you shouldn’t automatically decide that store brands are always the better choice.
Check the price after any applicable discounts.
Watch for Store Sales
Store brands can go on sale too.
If your store brand normally costs $2.50 and drops to $1.75, there’s probably no reason to buy the $4 name brand just because you have a small coupon for it.
On the other hand, a name brand may occasionally have a major promotion that makes it competitive.
The best deal can change from week to week.
Consider What You’re Using It For
This is an underrated part of the equation.
You may not care which brand of canned tomatoes goes into a pot of chili.
But if you’re making a simple tomato sauce where the flavor of the tomatoes is much more noticeable, you might prefer a particular brand.
In other words, the value of a product depends partly on how you’re using it.
If an ingredient is buried in a recipe, the cheaper version may be perfectly fine.
If it’s one of the main components of the meal, paying a little more may make sense.
Check the Ingredients When It Matters
Price isn’t the only thing to compare.
If you’re switching brands because one is cheaper, take a quick look at the ingredients and nutrition information when those things matter to you.
Two products that look almost identical on the shelf can have meaningful differences.
This doesn’t mean the longer ingredient list is automatically bad or that the shorter one is automatically better.
It just means you shouldn’t assume two products are identical because they occupy the same part of the aisle.
Don’t Pay Extra for Packaging
Sometimes you’re paying for a product’s presentation.
Fancy packaging, convenient containers and individual portions can all add to the price.
That doesn’t make them bad products.
If the convenience is useful to you, it may be worth paying for.
But if you’re trying to cut your grocery bill, ask whether you’re paying for something you actually value.
A large container of store-brand oats may cost significantly less than individually packaged portions.
If you have five minutes to make your own portions, that’s an easy place to save.
Know Where You Don’t Want to Compromise
Saving money doesn’t mean choosing the cheapest possible option every time.
Everyone has a few things they care about.
Maybe there’s a coffee you won’t give up.
Maybe your family strongly prefers one brand of peanut butter.
Maybe there’s a particular pasta sauce that makes weeknight dinners easier.
Keep those things.
Instead, look for savings in the categories where you don’t really care.
If you can switch your flour, canned vegetables, pasta and spices to store brands without noticing a difference, those savings can add up without making your meals feel like a downgrade.
Make a Short List of Easy Swaps
Once you’ve tried a few store brands, you’ll probably find some products that are nearly identical to what you were buying before.
Those are your easy swaps.
You don’t have to rethink them every time you shop.
If the store-brand pasta is always good enough, buy it.
If the store-brand frozen broccoli works just as well as the name brand, buy it.
If the store-brand butter is the same price as the name brand that you prefer, buy whichever you like.
The goal is to make the decision easier over time.
Don’t Forget About Quality Per Dollar
Ultimately, value isn’t just about getting the lowest price.
It’s about getting something you’re happy with at a price you’re comfortable paying.
A $2 product you don’t like isn’t necessarily a better value than a $3 product you use every week.
But paying $5 for a product that’s nearly identical to a $3 alternative doesn’t make much sense either.
That’s why the best approach is to compare price, quantity, quality and how much you’ll actually use.
The Best Brand Depends on the Product
There’s no universal winner between store brands and name brands.
For some groceries, the store brand is an easy way to cut costs.
For others, a name brand sale or coupon can make it the better buy.
And sometimes the name brand really is worth the extra money because you prefer the taste, texture or convenience.
The important thing is to stop making the decision based purely on the logo on the package.
Look at the price.
Check the size.
Compare the unit cost.
Factor in sales and coupons.
And, most importantly, decide whether the difference is something you actually care about.
If you can’t tell the difference between two products, there’s a pretty good chance you don’t need to keep paying more for the name on the front.