Creating a price book

By creating your own Price Book, you can find the average price of the desired product at all of the major retailers and find out which really is a sale. This can help decide when to stockup. For example:


(The price of Paper Towels at different retailers)

Wal-Mart: $1.99

Walgreens: $1.97

Target: $1.79

Knowing that the lowest price of towels is 1.79 when they are not on sale should tell you that even if WalMart's paper towels go on sale from 1.99 to 1.89, it’s still not a sale because you could have purchased the paper towels at Target for 1.79 without a sale.

Next, find out all of the sale prices on the paper towels at each of the retail stores and find out what the average sale price is.

(Sale price for Paper Towels at different retailers)

Wal-Mart- $1.29

Walgreen- $1.39

Target- $.99

(Average sale price = $1.22)

Now that you have found the target price you will pay for the paper towels, it is time to find out how often this item goes on sale. When you have found out the sales cycle for the paper towels (let’s say 5 weeks) when the sale hits, stock up on the item. Get as much as you think you would consume in the 5 week period until the next sale. This way when you run out of paper towels, there should be a sale where you can stock up for another 5 weeks until the next sale.

When creating a Price Book you will have to be organized, especially when it comes to a grocery list which can sometimes be really long. One way to keep organized is to create a Price Book from Microsoft Excel.
 
While using a Price Book, you will be surprised to see how much money you can save. You will also see when a so called “sale” really isn’t a sale at all. Give it a shot. It may take some time to develop, but this can be a helpful tool that could save you a lot of money. Good luck!