Here's how Trader Joe's keeps its groceries so cheap

• Trader Joe's wins over customers with its high-quality and affordable products.
• Selling products under a private label is one way that Trader Joe's is able to cut costs and pass along savings to the shopper.
• Here are some other ways that Trader Joe's keeps its prices so low. 

Trader Joe's wins over customers with its affordable products.

But despite how relatively low its prices are, the quality is still high. 

Part of the reason is that 80% of Trader Joe's products are made for its own private label. That means the grocer is buying goods directly from the supplier, cutting out the middlemen in the supply chain that can drive up costs. Trader Joe's can pass along those savings to the shopper in turn.

Another way Trader Joe's cuts costs and passes the savings on to customers is by depending on word of mouth to spread the word about its products, rather than spending a lot on marketing. 

See what else Trader Joe's does to keep its prices low: 

SEE ALSO: Trader Joe's execs reveal why employees wear Hawaiian shirts at work

Trader Joe's sells private-label products. That means the grocer is buying goods directly from the supplier, cutting out the middlemen in the supply chain that can drive up costs.

Source: Business Insider

About 80% of the products Trader Joe's carries are private label.

Source: Business Insider

Customers can't buy Trader Joe's private-label products anywhere else, but it helps keep costs low.

Source: Business Insider

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