How Grocery Stores TRICK US!!

Dr. Berg’s Healthy Keto and Intermittent Fasting Podcast

Dr. Eric Berg

Health & Fitness

4.6 • 1.6K Ratings

🗓️ 17 July 2024

⏱️ 11 minutes

🔗️ Recording | iTunes | RSS

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Summary

Today, I’m going to tell you how supermarkets get you to spend more money and control your food shopping experience. The majority of grocery store profits are not from markups on products! Around 50% to 75% of grocery store profit is from real estate, known as slotting fees. Food companies or brands spend money to have their products placed in prime locations in the grocery store.

Companies want their products in “the golden zone,” right at your eye level. This can lead to 8 times more product sales! Grocery stores use numerous marketing tactics to control your food shopping experience, such as manipulating grocery store layout, artificial smells, and floor texture to slow you down.

Supermarkets will place high-priced items near low-priced items and use color marketing tactics to their advantage. They also use social proof, such as retail tricks like “best seller” or “customer favorite,” to boost sales. The cereal aisle is the most profitable aisle!

Around 16% of the total sales of a grocery store are purchased from the front of the store! It’s no coincidence that candy lines the checkout aisle.

Labels are also very tricky, and similar marketing tactics are employed! Just because a product is labeled “natural” or “organic” doesn’t mean it’s not filled with sugar and starch.

To combat these supermarket tactics, avoid grocery shopping with kids or if you’re hungry and tired. Write a list and stick to it! Shop the perimeter of the grocery store, and don’t go into the junk food aisles.

Transcript

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0:00.0	Grocery stores are not necessarily in the food business.
0:03.8	They're in the real estate business.
0:05.6	Today we're going to talk about all the different tricks
0:08.1	that they use to get you to buy things that you never intended on buying. I don't know if you've been to a
0:14.3	grocery store lately but there's a lot of junk food in those stores. It's
0:18.2	becoming more difficult to find real food. 83% of all of the calories in a grocery store have ultra-processed food ingredients.
0:27.8	You're being majorly manipulated when you go to the grocery store.
0:31.0	So many people go to the grocery store with a certain plan, a little
0:33.7	list that they're going to buy certain things, but they end up getting a lot of
0:36.6	additional things. Well I'm going to talk about why. Grocery stores, they don't
0:41.0	really make as much profit as you think.
0:43.7	It's like 1 to 3 percent net profit, which is on the low side,
0:48.9	most of that money is not from the markup on the products.
0:54.2	Between 50 and 75% of their profit is from real estate.
1:00.3	It's called slotting fees.
1:02.2	Food companies or brands spend a tremendous amount of money on getting certain locations in that grocery store.
1:09.4	So one product could spend between 10,000 to 100,000 up to a million dollars to get just one
1:16.2	product on a certain shelf right in front of your eyeballs.
1:21.8	There's actually a name for it. It's called the Golden Zone
1:24.0	because they can sell eight times more product than if they're on a lower shelf.
1:29.2	So that's where the majority of grocery stores make their money. So they're really into the real estate business.
1:34.4	There's like 40,000 different products in a grocery store and one of the goals is to put you in front of as many of those products as possible. So there's all sorts of tricks to get you to do that.
	...

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