Spices Online - 98 cents vs. Brand Name @ $8.08/oz - Get the REAL Dirt on Spices Prices

May 29, 2010 - PRLog -- Spices are the possibly the most outrageously marked up items in the grocery store, and for some reason we stand for it. Are the brand names really that much better?

Frankly, that is completely subjective, and in this humble opinion, we think not. Spices are spices and as long as they are fresh and of good quality, the price tag and fancy packaging mean zilch. Disagree if you want. You know what W. C. Fields said about opinions. If not, email us and we'll tell you. This is a GP rated article you know.

So how is it then that spice king McCormick can get people to pay such prices? Answer? Because they can, we think. Otherwise, we are baffled. The retail spice business seems to us to be extremely cutthroat. Notice that most grocery stores usually carry just one major brand name, maybe a limited selection of one other, and possibly their own discount brand, neither of which are usually as complete in selection. It's as bad or worse than the Coke vs. Pepsi wars as far as we're concerned.

McCormick remains the 2,000 pound gorilla with approximately 50 % of the US spice market, and their 2009 sales were $3,192.1M. That's over 3 billion folks. They also buy up competitors as part of their strategy to keep their position strong.

The Internet is starting to change the market for spices though, and out of curiousity, a good look at the prices of spices online seemed warranted to see what the new competition offers. Here's what we did:

We looked at the serious players, those websites that popped up on Google Page 1 for the keyword phrase "spices online," with first attention to those that were paid advertisers.

We used just oregano as a test, as most popular spices sell for the same or close to the same price per unit, and one ounce being a popular size, though many major brands package less than an ounce for you to mask the sting of the bottom line retail price per ounce.

Before giving you what was found, please note that you can also save money by buying larger sizes or in bulk (a pound or more), but this is impractical for some people, and the convenience of a one ounce unit is what Americans seem to like. It fits nicely in your spice rack or on the kitchen counter also.

Here are the seven we priced. We looked for Mexican leaf oregano to be consistent, though some of these may be ground or of other origin.

myspicesage.com - $2.00
thespicehouse.com - $2.09
spicestoreonline.com - $2.18
savoryspiceshop.com - $2.20
spicesinc.com - $2.23
penzeys.com - $2.45
wholespice.com - $5.90

How about that? Lower, yes, but they're mostly the same. Is this the best we can do? Is this what the market will bear?

The real shocker is that this is still an incredible markup. The per ounce cost of importing oregano is in the pennies catagory, and though duty, freight and other charges must be considered, 25 cents an ounce is a practical estimate of cost for buying wholesale.

Why and how then the crazy prices? Packaging, both the basics and the fancy jars and labels, freight, or shipping and handling for an online purchase, and remember, every step of the supply chain there is someone who needs to make a profit, or you don't get your oregano.

Wait! Here comes the masked man. They don't advertise, but there's a new kid on the block,

dollaradaygourmet.com - 98 cents an ounce, and shipping and handling is FREE.

That's US. How can we do it? We're all about saving money on your food bills, and we're making a statement, and believe it or not, we're still making a profit. Not outrageous, but we cut out as much of the middlemen as possible and came up with a costing and sourcing strategy where we can do it cheaper than anyone, anywhere, any store or on the web.

We even offer you your own private label at no extra charge.

Can't beat that with a cinammon stick.

Visit http://www.dollaradaygourmet.com/Private-Label-Spices.htm today.

# # #

Dollar a Day Gourmet is the home of fantastic advice on how to save money on your food bills, innovative ideas to make life easier in the kitchen and better in the dining room, also THE place to get your very own private label spices for just 98 cents an ounce.