This giveaway is now closed. Thanks for stopping by. The winner is Erin E. Congrats!

After our house payment, food is our biggest expense. Between groceries and eating out, we spend a lot of money.  My husband and I are purposeful about the way we shop, and we often end up at different markets depending on our needs for that week.  The result is that our bill is never consistent and we find it difficult to budget each month.

I haven’t explored discount markets because I presumed that they would not have many of the natural, organic foods we purchase.  However, I’m always open to saving money so I agreed to check out a chain of markets called the Grocery Outlet.  The company, which has been in existence for over 50 years, boasts that it’s customers regularly save 40-50%.

So how do they achieve consistently low prices?  I spoke with the manager of the Fountain Valley store, who told me that the the store purchases directly from manufacturers.  The products are a combination of closeouts and surplus inventory.  Because the company has been around for many years, there is a trust between Grocery Outlet and the manufacturers it works with.

Over ninety percent of the foods and products I purchase are considered natural and/or organic.  It was nice to see a dedicated natural/organic section and similar products placed throughout the store.  The foods are not expired and the produce looked to be fresh.  The store was very clean and organized, which was refreshing.  I have often found that discount stores are messy.  The aisles are labeled well and the foods were generally located where they would be in a conventional grocery store (i.e. dairy, milk, meat in the back, frozen foods in the middle). I actually found there cosmetic section to be quite generous.

There are some things to consider when shopping at Grocery Outlet.  Unless you find a coupon on one of the store ads or your receipt, manufacturers coupons are not accepted.  But the prices are so low that you’ll still feel like you’ve saved money.  In fact, the receipt will tell you how much you saved by shopping at Grocery Outlet (I saved $20.10).

It should also be noted that you likely won’t find the same items from week to week, since the inventory is constantly changing.  Because I have a shopping list of items I need on a weekly basis, a son with food allergies and a daughter who only consumes organic baby food, it would be difficult for me to do all of my shopping at Grocery Outlet.  The nearest Grocery Outlet is 30 minutes from my house, which means that my trips out there would be more occasional than regular, provided I was in the area. However, I definitely think the amount of money you’ll save is worth it if you have a store that’s convenient to you and you’re not brand loyal.

Grocery Outlet offers some helpful tips that I think you may benefit from:

• Stop by often.
  Our inventory changes constantly. Find out when your store receives product and plan a trip on those days.
• When you find something you like, stock up.
  Many of our bargains are a one-time deal.
• Sign up for email notifications (plus Facebook and Twitter).
  Sometimes we have special deals or in-store sales events, when the savings get really crazy. We always notify our email and social networking friends first when we do this. You can sign up on our homepage.
• Look for what you’re not looking for.
  Using a list is helpful for staying on budget, but many expert shoppers tell us they get some of their best deals by staying flexible and ready to act when they see a great bargain

Since we’re still in the Back To School season, Grocery Outlet offers some frugal tips on packing lunches for your children.

Plan ahead. Shop from a list so you’re less inclined to impulse spend on packaged junk food.  Shop your cupboards and leftovers first to avoid duplicate purchases and be ready to change menu plans according to sales items.

Involve the kids. They’re more likely to eat a lunch they helped prepare.  Create a weekly lunch menu and let them circle their choices.  Place healthy menu items (i.e. orange slices, carrot sticks, string cheese, etc.) in the refrigerator produce drawer and let kids choose two or three the night before.

Single servings are expensive and waste packaging. Buy items such as yogurt and soup in large containers.

Avoid sandwich burn-out. Swap the bread for a tortilla/wrap to make a fun-to-eat pinwheel.  Let kids make cracker sandwiches with pre-cut meat and cheese.  A hearty cereal packed in a plastic container with milk from a thermos will be a welcome change.  And leftover pizza doesn’t require a microwave.

Try “extreme value” food outlets – such as Grocery Outlet.  These outlets purchase overstocks and closeouts directly from manufacturers resulting in prices up to 70% cheaper than conventional retailers.

Make it fun. Use cookie cutters (animal, holiday, etc.) for fun-to-eat sandwiches.  Stickers always brighten up a plastic bag.  You can even write a love note on the banana peel.

For store locations, just visit their main website!

Win It! One of you will win a $25 gift card to Grocery Outlet.  Simply leave me a comment with either your best savings at Grocery Outlet or something you learned on the site.  Comments will close on October 22, 2010 at 11:59 PM PST. Duplicates and comments not including the above information will be disqualified. Comments are moderated. If you don’t see your comment in a reasonable amount of time, send me an email. Bloggers and non-bloggers may enter. If you don’t want to leave your email address, please be sure to check back for my announcement on the winner. Please note that winners must respond within 48 hours of being announced/contacted or another winner will be drawn.Want an extra entry? Do any or all of the following and receive an extra entry for each one.Be sure to leave me a separate comment for each additional entry.

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No compensation was received for this post.  Gift cards for review and giveaway were supplied by the company.