Why is ALDI so much cheaper than other supermarkets?

aldi store

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Why is ALDI so much cheaper than other supermarkets?  Curious shoppers want to know how they can offer groceries for 20-50% less than their competitors without compromising quality.  After visiting the ALDI Test Kitchen and headquarters in Batavia, IL last week I now have a better understanding.  Let’s clear one thing up right away: It’s not by offering inferior products.   ALDI products undergo considerable testing by their own staff and 3rd party consultants before deemed worthy of offering to the marketplace.  The ALDI business model has been so successful because of their staunch attention to streamlining the process from start to finish.

Why is ALDI so much cheaper than other supermarkets?

  • ALDI stores offer a narrow selection of 1400 high-volume products as opposed to the typical 40,000 or more by supermarket giants.  Because they only offer products with high turnover, their overhead is lower.  Perishable products like milk, meats and produce arrive 5-7 times per week, so there’s no need to rotate inventory for freshness.
  • No coupons or credit cards are accepted.  Debit cards are accepted.
  • Customers “rent” a cart by depositing a quarter, and return it at the end of their trip which eliminates the need for ALDI associates to corral them.
  • ALDI employees well-trained to multi-task.  Only 3-4 employees are required per shift, which helps keep cost down.  They are put to use in all areas:  stocking, cleaning, and checking out.  They work hard, but are compensated well.  In the Chicago area, ALDI associates start at $12.65 per hour.  Plus, part-time employees with as few as 20 hours per week are eligible for medical and dental coverage.
  • Stocking the shelves is also much faster.  Products don’t have to be taken out of the box at ALDI.  Boxes are designed with colors that blend in with the product packaging – an effort known as the ”invisible case” project.   Heavier things like flour and sugar are left on the pallet.  Milk arrives on racks so that 80 gallons can be shelved in just five seconds.
  • Stores use energy-efficient refrigeration and lighting.  New stores use a lot of natural lighting; older stores are being retro-fitted with energy efficient lighting.
  • Produce is individually packaged and sold by the unit to avoid weighing at checkout.
  • Sale signs are reusable and can be changed manually.
  • At ALDI, the checkout process moves at lightning speed.  Since ALDI stocks their own private label items, they also design the packaging for optimal efficiency.  With  3-6 large UPCs on each package, scanning is much quicker.
  • Customers purchase bags (or bring them from home) and bag their own groceries.

Did you enjoy this information?  Order my book:  Instant Bargains: 600 Ways to Shrink Your Grocery Bill and Eat Well for Less

View our entire ALDI Photo Gallery on Mommysavers.com.
aldi milk

ALDI milk arrives on racks to facilitate restocking

why is aldi so much cheaper than other supermarkets?

Multiple UPC codes on packaging make scanning easier

why is aldi so much cheaper than other supermarkets?

Products are shelved in boxes

why is aldi so much cheaper than other supermarkets?

Sale signs are reusable at ALDI

aldi labels

Sale signs are changed manually and reusable

aldi produce

Produce at ALDI is packaged to avoid the need for weighing

Homemade Condensed Cream Soups

homemade condensed cream of mushroom soup

Making homemade condensed cream soups is one way to save money and end up with a healthier product at the same time.  Once you get the hang of it, you’ll want to add your own seasonings and flavors according to taste.  In my book, Instant Bargains, you’ll find dozens of other recipes that will help you save money in the kitchen.

Note:  These recipes makes a roux which can be substituted for the can of soup.  It doesn’t make the finished soup product.

Homemade Condensed Cream Soups

Condensed Cream of Mushroom Soup
Prep time: 
Cook time: 
Total time: 

 
Make your own cooking soups at home for a fraction of the price!
Ingredients
  • 1 Tbsp. butter
  • 3 Tbsp. flour
  • ½ C. beef broth
  • ½ C. milk
  • ¼ tsp. each garlic and onion powder
  • 8 oz. fresh or canned mushrooms (optional)
  • Salt and pepper to taste
Instructions
  1. Melt butter in saucepan over medium heat. Add flour and stir until smooth. Lower heat and add broth, milk, mushrooms and spices.
  2. For a chicken variation, substitute chicken broth and omit the mushrooms.

 

Shrink Your Grocery Bills Without Using Coupons… and WIN!

instant bargains

When I tell people I run a deal site and give advice on how to snag groceries for less, most people jump to the conclusion that I use a lot of coupons.  Nothing could be further from the truth!  There were times in my life that yes, I clipped coupons.  A LOT of coupons.  I also had more time then.  As a busy mom, I now feel I’ve got more effective ways to use my time.  I still clip high-value coupons when I see them.  I just don’t go nuts with the Sunday paper.  And, I STILL don’t spend a lot on groceries.

There are so many other ways to save money, shrink your grocery bills and eat well for less.  My book, Instant Bargains, includes 600+ tips on how to do just that.   The book doesn’t just include my own tips, it includes advice from my friends, family and the Mommysavers Discussion Forum Members.   I want to offer you a copy of my book as well as $25 to spend at ALDI.  If you haven’t discovered ALDI yet… why not?   Read more about Saving Big Bucks at ALDI on Mommysavers.

We’ve got multiple ways to enter this giveaway.  Our winner will receive a copy (I will autograph if it you’d like) as well as a $25 ALDI gift card.  Both are great resources to help you shrink your grocery bills! I will choose one winner at random on Wednesday, August 15th.  Good luck!

a Rafflecopter giveaway