7 Reasons Why Trader Joe’s is So Cheap
Trader Joe’s is a savvy shopper’s tropical paradise. Here’s why.
Trader Joe’s is serious about value—you can tell that from their 19-cent bananas! But they have everyday super-low prices on lots of other great products, too.
How do they do it? Why is Trader Joe’s so cheap?
They Don’t Run Ads
No $4M Super Bowl ad spots for this budget-friendly chain. The iconic “Fearless Flyer,” the Trader Joe’s newsletter you see at all the checkouts, is the company’s primary form of advertising. Having super-friendly employees doesn’t hurt, either!
They Don’t Have Name Brands
80% of the products sold at Trader Joe’s bear a Trader Joe’s label. (Trader Joe’s, or Trader Ming’s, Trader Jose, Trader Giotto… you know.)
They Only Stock the Best Stuff
Every product at Trader Joe’s has to pull its own weight. If an item doesn’t sell strongly, it goes away to “gangway” for something else.
They Don’t Charge Suppliers
Most grocery store chains charge their suppliers a fee to stock an item on the shelf. This results in marked-up prices… so Trader Joe’s doesn’t do it. Simple!
They Keep Operational Costs Low
Trader Joe’s stores don’t have a full-service butcher shop, bakery or café. We’ve also heard that the chain likes to use energy-efficient lighting to cut down on utility costs. Plus, TJ’s tends to stock certain things in boxes, rather as individual products on the shelf.
They Have Small Stores
Less square footage than other top grocery chains means Trader Joe’s can keep overhead costs low—and every penny they save on the A/C bill gets passed on to customers like us.
They Don’t Have Coupons
It might seem odd, but Trader Joe’s helps customers save money by not having promotions. They offer the best deals without any “gimmicks,” which means they don’t have to pay to print coupons, promote a weekly sale or run a membership program. Just low prices, every day!