How to Avoid Supermarket Rip-Offs

28 rip-offs to avoid, so you can have more left in your bank account after your next supermarket shop

With rising living costs, does it sometimes feel like your weekly supermarket shop is a never-ending battle? You go in for a few items, and you come out with a receipt that leaves you scratching your head. It’s a familiar feeling for many of us.

We often focus on the big-ticket financial decisions like buying a car, investments, holidays, and mortgages, but it’s often the small, repetitive expenses that can quietly and relentlessly erode our financial wellbeing.

Supermarkets are not just places to buy food; they are carefully designed environments that use powerful psychological cues to influence our spending. From the layout of the aisles to the subtle pricing techniques, every element is meticulously planned to encourage you to spend more. By understanding these clever methods, you can take back control of your budget and become a more conscious, intentional consumer.

But first, a little context.

Background: High Supermarket Prices

In case you weren’t already aware, the multi-billion-dollar New Zealand supermarket industry is dominated by two players. The big two are:

1. Woolworths New Zealand, which is also franchisor of the SuperValue and FreshChoice stores, and
2. Foodstuffs, the name behind New World, Pak’nSave and Four Square co-operatives.

A market dominated by two players is called a duopoly. In a duopoly, two competing businesses control the majority of the market sector for a particular product or service they provide. which is generally frowned upon as it can have negative impacts, including:

• The supply of goods and services lacks diversity, and there are limited options for consumers.
• It is difficult for competitors to enter the industry and gain market share.
• The absence of competitors in a duopoly stifles innovation. With a duopoly, prices may be higher for consumers when competition is not driving prices down.

A recent Commerce Commission report on the supermarket chains said what many already know: groceries cost too much, and the lack of competition between the two major supermarket owners isn’t working well for households. In fact, this is now a nationwide scandal of sorts, and voter pressure on politicians is building to break up the duopoly.

So, the next time you’re in a supermarket, here are 28 dirty tricks to watch out for to keep more funds in your bank account. After all, building wealth isn’t just about how much you earn; it’s about making your dollars work harder for you.

1. The "Loss Leader" Lure

Supermarkets intentionally sell a handful of popular items at a loss to draw you into the store. These are often staples like milk, bread, or eggs. The supermarket hopes that once you're in the door for a great deal, you'll fill your trolley with dozens of higher-margin items to cover their losses. In other words, they just raise their prices on other goods to offset their “loss leaders”.

• Your Approach: Don't let a single deal dictate your entire shop. Be aware of the items you truly need and stick to your list. Stock up on items when they’re on special.

2. Plush Toilet Paper

Premium toilet paper can be three-ply, coloured, scented, and come with imprints on the toilet tissue itself. For this sort of luxury, you’ll pay a premium price.

Quite often, well-known toilet paper brands have found ways to charge more while offering practically the same product, sometimes even reducing quality. They keep the packaging identical, misleading consumers into thinking they're getting the same value when, in fact, they're paying more for less.

• Your Approach: Buy in bulk or keep it simple with a firm but unfancy two or three-ply unscented variety. This will hopefully be best for the environment too, as there’s less or no colours and perfumes.

Learn more: how to save money on toilet paper

3. Phantom Specials

You see a bright sign proclaiming a "special" or "low price." Often, this price is not actually a genuine saving. In many cases, it's the product's regular price, or the "special" price is so similar to the original that the saving is negligible.

• Your Approach: Always check the unit price (price per 100 grams, kilogram, or litre) and be sceptical of signs that seem too good to be true.

4. Impossible Comparisons

Supermarkets make it difficult to compare prices by presenting items in different measurements. For example, fresh tomatoes might be priced per kilogram, while packaged tomatoes are priced per pack.

• Your Approach: The unit price is your best friend. Use it to compare the cost of items, regardless of how they are packaged. Some supermarket shopping apps allow you to sort items in this way.

5. Shrinkflation: Paying More for Less

This is a sneaky tactic where products get smaller in size, weight, or quantity, but the price stays the same or even increases. The packaging usually remains identical, so you don't notice the change. This is called shrinkflation.

• Your Approach: Check the net weight or quantity on the packaging. Get into the habit of reading the fine print.

6. The Illusion of "Premium"

Products with fancy packaging and labels like "premium," "artisan," or "gourmet" are designed to convince you they are superior. Often, they contain the same or similar ingredients as their cheaper counterparts, with the extra cost simply covering the expensive packaging.

• Your Approach: Look past the branding. Compare ingredients to determine if the product is genuinely better or just a marketing illusion, for example, lean beef mince may be worth paying more for than mince with a higher fat content.

7. Convenience Tax

Items that are pre-chopped, pre-packaged, or snack-sized are classic convenience traps. A bag of pre-cut salad greens, pre-sliced meat, or a single-serving tub of fruit will cost significantly more per kilogram than buying the ingredients whole and preparing them yourself.

As a bonus, by avoiding these items you’ll also reduce waste, particularly packaging.

• Your Approach: Take a few extra minutes to chop vegetables and fruit at home. The cost savings add up quickly, and you'll often get a fresher product with less plastic waste.

8. Added Flavours, Added Cost

Supermarkets love to stock "value-added" products. Why pay a premium for pre-seasoned meat or garlic butter prawns when you can buy the raw ingredients and add your own seasonings for a fraction of the cost?

• Your Approach: Choose whole, unflavoured items and add your own herbs, spices, and sauces. You'll save money and have more control over the flavour and ingredients.

9. The Eye-Level Enticement

Supermarkets tactically place the most expensive or highest-margin products at eye level on the shelves. This makes them the first thing you see and are most likely to grab.

• Your Approach: Train your eyes to look up and down. The best value items are often found on the top or bottom shelves.

10. Checkout Impulse Buys

The checkout aisle is a minefield of small, tempting items designed for impulse buying while you wait in line. Chocolates, magazines, and other treats are placed here to encourage you to make one last purchase before you leave: especially if you’ve brought kids on your shop!

• Your Approach: Stay focused on your primary goal: paying for your groceries. Avoid browsing the checkout aisles and stand firm in your resolve. If you can, leave the kids at home.

11. Store Layout Shuffle

Supermarkets regularly change the store layout. This isn't just for a new look; it's to force you to walk every aisle in search of your usual items. The more you wander, the more likely you are to discover new products and make unplanned purchases.

• Your Approach: Stick to your list. Don't be tempted to browse just because the layout has changed. Consider online shopping instead.

12. Aroma Attack

The aroma of freshly baked bread or rotisserie chicken at the front of the store is a powerful psychological trigger. It stimulates your appetite and makes you more likely to buy food, including items not on your list.

• Your Approach: Never shop on an empty stomach. Eat a meal or a snack before you go to the supermarket.

13. Bogus "Best Before" Deals

Items close to their "best before" date are often marked down. While this can be a genuine saving, it’s only a deal if you will use the product immediately. If it expires before you can use it, it's a complete waste of money.

• Your Approach: Only buy "best before" markdowns if you have an immediate plan to consume or use the item.

14. Overpriced Packaged Salad

Pre-packaged salads often come with a significant markup. You are paying a premium for someone to wash and chop lettuce, and the plastic waste is an added cost.

• Your Approach: Buy a head of lettuce or a bag of whole greens and wash them yourself. It’ll probably take a lot less time and effort than you think.

15. The Price of Sugar and Marketing

Many snacks, especially those targeting children, are marketed as healthy but are loaded with sugar. These snacks are often purchased by busy parents who might not realise the contents of what they’re buying.

"One technique is to say on the packet what's not in the product," said Jane Martin, who leads the Food For Health Alliance, a partnership of leading public health and nutrition organisations in Australia. These products might have labels saying “No GM. No preservatives. No artificial colours” but that distracts from what's in the product such as excessive sugars and no real fruit.

The brightly coloured packaging and cartoon characters are designed to appeal to children and influence their parents' purchases.

• Your Approach: Read the nutritional information, especially the sugar content. Choose whole-grain, low-sugar alternatives.

16. Overpriced Household Cleaners and Disinfectants

Branded household disinfectants and cleaners are often priced well above home-brand alternatives, with no corresponding difference in efficacy. You are paying for a brand name and a marketing campaign, not a better product.

• Your Approach: Opt for home-brand cleaning products, which are just as effective and significantly cheaper.

17. Bottled Water, a Costly Convenience

Buying bottled water is a clear example of paying for convenience. The cost of a small plastic bottle is hundreds of times the cost of tap water.

If you’re overseas, it might be fair enough. But in New Zealand, where the tap water is of exceptionally high quality, paying for supermarket water is unnecessary.

• Your Approach: Carry a reusable water bottle and fill it from the tap. It's better for your wallet and the environment.

18. Single-Serving Snacks

Snacks in single-serving packets, like small bags of chips or biscuits, are more expensive per unit than buying a large bag and portioning it out yourself.

• Your Approach: Buy larger bags of snacks and use reusable containers to create your own single-serving portions. Alternatively, just have some fruit.

19. Ready-Made Meals

Ready-made or frozen meals are often high in salt, sugar, and preservatives, and their cost per serving is far greater than if you made the meal from scratch.

Consider pre-made frozen pizza, which can cost $10 to $15 for just over 300 grams. That's $30 to $50 per kilogram of pizza. These pizzas are often loaded with salt, preservatives, and low-quality ingredients, making them overpriced for what they offer.

The same can be said for microwaveable “TV dinners”. Aside from being overpriced, they’ re often loaded with salt, preservatives, and lack freshness.

• Your Approach: Plan your meals, cook in bulk, and freeze leftovers. This saves both time and money. Or, if you prefer convenience, consider meal kits, some of which have become popular and cost-effective.

20. The "Club" Membership Fee

Some stores offer a "club" card that gives you access to special pricing. This can be a good deal, but don't let the card dictate your shopping habits. The goal is to get you to spend more over time and avoid specials at other outlets.

• Your Approach: Use the club card for items you were going to buy anyway, but don't buy things you don't need just because they are "on special" for members.

21. The "10 for $10" Trick

Offers like "10 for $10" or "buy three and get one free" are designed to get you to purchase more than you need. The items are often still the same price per unit if you only buy one, or only slightly discounted.

• Your Approach: Check the unit price. If you only need one, buy one. Don't let a catchy deal persuade you to overbuy and potentially waste food.

22. Bakery and Deli Seduction

The fresh smell of the bakery and deli is placed at the front of the store for a reason. These sections offer high-margin items like artisanal bread and pre-sliced meats that are more expensive than their pre-packaged counterparts.

• Your Approach: Buy pre-packaged bread and meats, which are often just as fresh and are significantly cheaper.

23. Cart Size Inflation

Supermarket trolleys are getting bigger. A larger cart feels empty even when it's half full, subconsciously encouraging you to fill it up.

• Your Approach: Use a hand basket if you only need a few items. If you need a trolley, be mindful of what you are putting in it.

24. Overpriced Gift Card Display

Gift cards are a major source of revenue for supermarkets, often placed near the checkout. While convenient, they can lead to impulsive purchases and missed opportunities to get a better deal.

Worse still, many gift cards are left unspent. A few years ago, it was estimated New Zealand consumers lose about $10 million every year on gift cards which expire, are lost, or can’t be used for some other reason.

• Your Approach: If you need a gift card, plan to buy it ahead of time. Don't be tempted to buy one on a whim.

25. Music and Mood

Supermarkets use music to control the pace of your shopping. Slow, calming music encourages you to linger and browse, leading to more purchases.

• Your Approach: Be mindful of the mood the store is creating. Stick to your list and your pace, regardless of the music. Or you might enjoy listening to your own music as you stroll the aisles!

26. Breakfast Cereal

This one might be a little controversial, especially for those readers raised on cereals.

Breakfast cereal boxes are shrinking, and prices are inflating.

Furthermore, despite packaging claiming to be healthy, cereals are often high in sugar and low in nutritional value. One New Zealand study reported a child’s total recommended daily sugar intake could be consumed in one meal alone, especially as children often eat up to double the recommended serving size.

Also of note, the most well-known producer of New Zealand breakfast cereal is exempt from income tax, because of its charitable status.

• Your Approach: Switch to bulk oats, make your own muesli at home, or have something else altogether. This allows you to control the ingredients, ensuring better nutrition at a significantly lower cost per serving.​

27. Grated Cheese

Pre-grated cheese comes with a markup and often contains additives to prevent clumping, which can affect both flavour and texture. It's a bad deal.

• Your Approach: Buy block cheese and grate it yourself. It's fresher and tastes better.

28. Tinned Soup

Canned and packaged soups cost around $5 for a single serving. These soups are mostly water and often contain more salt than vegetables. The convenience of having them pre-made comes with a significant price hike.

• Your Approach: Make a big soup at home using fresh vegetables and spices. It'll be tasty, almost cooks itself and lasts for days. Not only will it taste better, but you can freeze portions for later, making it just as convenient without the added cost.

Outsmarting Supermarket Rip-Offs

Admittedly, many of the priciest culprits listed above are ready-prepared items you might pay a so-called “convenience tax” for. But convenience often comes with a not-so-hidden cost, and it’s your wallet that pays the price. Knowing the real cost of ready-made shortcuts is half the battle, especially when time might feel tight in our modern lives.

This isn’t about guilt-tripping anyone into grinding their own flour or cooking every meal from scratch. It’s just about awareness: by spotting which everyday items carry the heaviest markups, you might be able to make smarter choices, reduce waste, and keep more money in your pocket. Then those dollars can be dedicated to things that really matter. Every small saving adds up, and those little wins are exactly how financial discipline is built.

Online Supermarket Shopping

Online shopping is changing how supermarkets go about their business. In New Zealand, the major supermarket chains now have robust online shopping platforms and mobile apps. These digital tools can be an excellent way to master the issues outlined above.

There’s a whole lot of benefits to online supermarket shopping, including:

• Ease of sticking to a budget
• You have more time to weigh up any deals and compare sizes or quantities of whatever you need
• Effortlessness, especially if you may otherwise have children in tow, or if you are older and have mobility issues
• Member-only prices and offers
• Ease of meal planning, which can also reduce waste
• Ease of comparisons across supermarkets
• Review past purchases and repurchase with ease. This includes adding things straight to your supermarket shopping app rather than having a separate shopping list

However, a downside is that you can’t pick your own produce, so you’ll have no assurance whether you’ll be getting mouthwatering or average melons. Another shortcoming might be the 'allow substitutes' options, if you check such a box, it means the supermarket can change parts of your order if they've sold out and replace it with something else. Some people report being given more expensive items as replacements and only being charged for the cheaper version, but some have reportedly thrown in a pricier replacement and charge you extra.

If you haven’t already tried online supermarket shopping, simply:

1. Sign up for an app or online shopping method
2. Tick the products you want
3. Enter your credit card details
4. Either wait for your delivery or pick it up yourself

The Bottom Line: Avoid These Supermarket Rip-Offs

By becoming a more knowledgeable and intentional shopper, you might be able to ingrain a powerful wealth-preserving habit. Small changes like shopping mindfully can lead to significant long-term financial freedom.

In many cases, you’ll be healthier, too.

Even if avoiding the rip offs listed above can save 10 percent from the average weekly supermarket bill, that might equate to $28 a week, $107 a month or $1,456 a year.

This can pay off substantially in the long run, especially if you put those dollars to work elsewhere!