Do you know your onions?

As consumers, carrying out our weekly shop, we tend to know what we like and like what we know. Usually we stick to a similar basket of products week to week, with a little seasonality thrown in. Supermarkets, which spend enormous amounts watching our shopping habits know this and use it to make money out of us. So how can we turn the tables and save some cash?

If we take fruit and veg as an example then the price of this varies (usually by a few percent per month) depending on a range of factors. Recently Apple prices (on the open market) have been up due to poor weather conditions in some growing areas. At the same time bananas prices have been down due to bumper crops in certain areas of the world. Whilst meat prices have generally been rising, lamb has been representing better value, with a good season following two poor ones in New Zealand (though remember you are also paying for the transport!).

So we need to keep an eye on the price per kilogram on the supermarket shelf and pick the produce which represents the best offer. This may mean breaking our own shopping habits to save a few pounds per week. But your Mum always knew that anyway.

Lawrence Bellamy is a Professor at the Warrington School of Management, University of Chester

(Main sources –Mintec commodity reports, February 2013)