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7 Reasons Why Trader Joe’s Is So Cheap

Trader Joe’s is a savvy shopper’s tropical paradise. Here's why.

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Trader Joe's
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Trader Joe’s keeps prices low

Trader Joe’s is serious about value! 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? Here, we explore the reasons.

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Trader Joe's
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They don’t run ads

No $4 million 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!

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They don’t have name brands

More than 80 percent of the products sold at Trader Joe’s bear a label of Trader Joe’s (or Trader Ming’s, Trader Jose, Trader Giotto … you know). That’s one of the 13 reasons why Aldi is so cheap too.

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Trader Joe's Cauliflower
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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 disappears to “gangway” for a better seller. Here are the cheap things you should only buy at Trader Joe’s.

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Trader Joe's
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They don’t charge suppliers

Most grocery store chains charge their suppliers a fee to stock an item on the shelf. The suppliers boost their prices to make up for it, leading to marked-up prices … so Trader Joe’s doesn’t do it. Simple! These are the 11 other things Trader Joe’s employees want you to know.

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They keep operational costs low

Trader Joe’s stores don’t have a full-service butcher shop, bakery, or café (though most do have help-yourself coffee machines!). 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 products in boxes, rather than shelving the items individually.

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People walk by a Trader Joe's grocery store
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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 AC bill gets passed on to customers like us.

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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! Next, check out the 19 foods nutritionists always buy from Trader Joe’s.

Taste of Home
Originally Published on Taste of Home