but rather that Wal-Mart not only leads the charge towards cheapness . . . A good example of the latter can be seen in DVRs. Most folks are okay with the "Wal-Mart quality" cable-compatible DVRs that they can lease from their cable company . . . TiVo has spent ten years losing money, because of how much consumers undercut the profitability of quality products by their acceptance and preference for Wal-Mart quality at Wal-Mart pricing.
I hear where you're coming from, and you're absolutely right to say tht the existance of a cheaper product (often lesser quality) does undercut the premium item.
However, you also have to factor in people's priorities. To borrow from your DVR example, I'm sure that TiVo is much nicer -- perhaps it's fair to call them the Cadillac of DVRs. But does that mean everyone
cares enough about that particular service to pay the Cadillac price? Plenty of people (like me) don't DVR at all and don't care to do so. In fact, the
Walmart DVR price looks pretty high to me, simply because it's a service that doesn't interest me.
Another example: I make wedding cakes. I make elaborate, custom-designed, baked-from-scratch cakes. I deliver them to the wedding site, set them up myself and "dress the table". I serve the cakes (which, because of my internal supports and secret interior cuts, do not have to be disassembled to be served), clean up at the end, and leave the customer with a box of wrapped leftover cake. Simply put, my cakes are the best available in this area, and they are
always the hit of the reception. People tell me that guests still talk about their cakes months and even years later. As you can guess, I charge a pretty penny for this premium cake.
I'd imagine that the vast majority of brides would recognize that my cakes are vastly superior to a box-mix cake baked in the Kroger deli and picked up by the groom's brother. BUT knowing that my cakes are better doesn't mean that every bride's willing to pay for one of my cakes. Plenty of people are perfectly happy to have a grocery-store made cake -- for some of them, if my cake were the only thing available, they'd slap a homemade sheet cake down on the table and call it done. In their minds, it's just not a big part of the wedding. They really don't care. It's not their priority. (And I don't really care -- I don't want my cake business to be big; that'd feel too much like work for me.)
I've found that where one place is cheaper for one item, another will be higher for that same item. No single store seems to be consistently cheaper than another. Sales and customer loyalty programs will alter these prices across the board, too.
I don't have the time/ability/desire to run to Jewel, Walmart, Target, Petco, Trader Joe's and/or the local grocery store down the street to find the best deal on what I need to get. Being in the city, these stores aren't necessarily even close to me anyway and are pretty well spread out from one another. The whole point of going to a Walmart, for example, is the convenience of having everything you need under one roof. But if the cat litter I use is $1 cheaper at Target (which it is) and I'm getting everything else I need at Walmart, I'm not making a special trip to Target. If anything that dollar just gets spent on gas to get there.
Given the time it takes to be a conscious consumer and try to get through a grocery store, I almost wonder if all the choices we have are a blessing or a curse.
And that's why a price book is such a genius idea. If you start keeping records of what's available in your area, you'll start to see patterns: You'll know which sales aren't really sales at all. You'll see that the expensive grocery store's chicken goes on a fantastic price about every two months . . . so you can anticipate it and plan to fill your freezer. You'll know the rock bottom price of your favorite brand of peanut butter with certainty. And, to borrow from your example, you'll know that the kitty litter is cheaper at Target, so when you go there this week you'll get enough to last several weeks . . . and that means you'll BOTH save the $1 AND not have to make a special trip next week.
A price book takes about six months to really take shape, but I promise you that it's worth the work. Making a price book, searching out non-grocery store options, and skimping on beverages are -- by far -- the best ways to save on groceries.