how to create a price book

In my February grocery budget post, I mentioned creating a price book to track prices. Given the rising cost of eggs due to the bird flu and the rising cost of other grocery items as various tariffs kick in, we are going to see prices rise.

Prices have already been rising at the grocery store for years, often without us realizing it. Companies repackage items in smaller packages thus increasing the unit price, but how many consumers pay attention to the unit price? Once these higher prices are established, no company will lower them since their bottom line will be dependent on the new price.

A price book is vital to controlling your grocery budget. You’ll know when to invest in stockpiling an item for your family, or when to skip a “sale.” My one caveat is to set aside only a small portion of your grocery budget to stockpile in a realistic manner. Once you get to know the sales cycle for the items you purchase on a regular basis, you can decide how much to buy each time at the sale price.

How to Track

To get started, decide how you want to track prices. I used a $.50 notebook from Staples for years with lettered tabs, and kept it in my purse. Last year, I switched to using a Google spreadsheet which I have easy access to on my phone. It’s located in my Productivity folder on the Home screen. You can download an app to your phone, though I don’t recommend purchasing an app.

How to Start

Start where you are. I usually keep about a month’s worth of receipts in my office just in case I need one for a return. This gives me 4 weeks of spending habits to record in my price book. It also helps you to begin to see trends in grocery sales. Of course, you can start with one week of receipts. The point is to get started.

What to Track

• Item Name – I use a generic description of an item unless it’s something we specifically use all the time like Arm and Hammer detergent. I only use A&H due to my daughter’s various allergies.
• Unit Price – You calculate unit price by dividing the price you paid by ounce or pound.
• Store Name – As you get comfortable shopping sales at different stores, you need to strategize your trips using information in your price book.
• Date – To keep an eye on trends, you need to know the last time you paid that particular price. If you run across a cheaper price, update your price book accordingly.

While it may seem like a lot of work to create a price book, if your goal is to plan how to spend your grocery budget dollars to maximize your buying power, then it’s worth the small investment of time. Otherwise, you’re leaving money on the table.

P.S. Don’t forget to scan those receipts to earn points on Fetch!