Prices have already started shifting at the commissary under the new variable pricing strategy. Have you noticed a difference? The change began earlier this spring when the commissary tested the new program out in 10 stores.
Now the variable pricing strategy is being implemented across the country. Don’t worry; you’ll still see great savings.
Michelle Hooper, a customer service ambassador at the Luke Air Force Base, Arizona, Commissary, scans prices. Luke won the 2015 Defense Commissary Agency’s Director’s Award for the Best Superstore. (DeCA photo)
If you missed the big announcement, last year the National Defense Authorization Act (NDAA) authorized a significant change in how the commissary determines the price of goods. Previously, the commissary set prices at cost plus a 5 percent surcharge. That surcharge money was used to maintain commissary facilities and to build new ones, such as the $38-million commissary at Fort Belvoir.
DeCA, the Defense Commissary Agency, which operates the commissaries, is funded by taxpayers’ money with a budget of $1.3 billion annually. Washington has been trying for years to get the commissary to be more self-sufficient and rely less on federal funding.
This year they are finally attempting to do just that. Variable pricing is one of their strategies. The commissary will also be introducing store brand products as well.
What is variable pricing?
Previously, the products at the commissary were sold at cost plus the 5 percent surcharge. Under variable pricing, the prices of goods will no longer be that simple.
Instead, many factors are taken into consideration when setting the price of products. This includes the market price, cost of obtaining the item, how well the items sell and more.
This isn’t something new the commissary came up with or that those in Washington fathomed. It is how commercial grocery stores determine their prices. The commissary is now embracing a similar pricing system.
Prices have always changed at the commissary based on the cost the commissary incurs for items from manufacturers. Many factors cause manufacturers to change the price they charge, such as weather and their cost of doing business.
Prices will now fluctuate with the market instead of simply with the manufacturers. While some prices might be going down, others might go up. Overall savings at the commissary will not change however.
How much will each region save?
Commissaries are grouped into regions. Market research is conducted in each region to determine the prices goods will be set at. This includes comparing the prices of about 1,000 products locally as well as the estimated 38,000 products that are checked nationally.
The cost of living varies across the country and with that is the cost of food. Researchers then are tasked with comparing the prices of items at different grocery stores across individual regions to determine the best price to set commissary products at. As the cost of living is higher in some areas and lower in others, so too will be the savings level in each region.
These savings will range from 17.6 percent to 44.2 percent over commercial grocery stores depending on which region you are in. Below are the regions and the overall savings expected.
Region Savings %
New England 21.4%
South Atlantic 19.9%
South Central 18.1%
Pacific 20.9%
Mountain 17.6%
North Central 20.2%
Alaska/Hawaii 32.6%
Overseas 44.2%
Which region am I in?
Now that you know how much savings each region is expected to save, you may want to see which region you are in. Commissaries aren’t in typical geographical groupings, as Virginia is included in the New England region as opposed to the South Atlantic for example.
To find out which region your commissary is in, look for your military installation on this map. Are you in the region you expected? How do you feel about the savings percentage your region is expected to get?
Next time you go to your commissary, check the prices and see if you can tell a difference.
Will there still be the 5% surcharge on top of the probably higher costs? The article doesn’t say.
might as well go shop locally now….locally there is no tax on FOOD, the vegetables and fruits are better, and selection is varied. I shopped the commissary for well over 30 years because even with the surcharge I was paying less than locally – I’m suspecting that isn’t going to the actual case any more. Another bennie taken away from those who served and are serving.
Will there still be a 5% surcharge on top of the higher prices? If so, then it probably isn’t worth it for me to drive the extra miles to the commissary.
Why does it matter, after paying a 5% surcharge then having to pay the baggers it’s just as expense to shop on the market!
Exactly the reason I bag my own groceries. I drive 30 miles one way just to shop. If I have to pay the badgers also I might as well shop elsewhere.
Baggers- silly spell check
You can pay the bagger what you want. It is not cost worthy for me to go to any market on the outside because of the baggers. I think we should give them something. But don’t break the bank. There are some of us that are disabled and can’t bag grocery. When I go outside and shop It is worth me shopping at our commissary.
I have noticed a change in prices on a lot of items. Things that drastically went up is cheese and bacon and pizza. I have gotten to the point I rarely go to the commissary because of the prives, quality, and lack of items, or the store switching from brands rhat I perfer to buy.
The Congress wants the commissary to be more self sufficient and self supporting. Maybe they should start with increasing the pay of the lower ranks to that it is more in line with the civilian sector, factoring in housing and medical costs.. I swear that these people in Congress have no clue what the service men and women do. They have jobs where they are expected to put their lives on the line and also to know their MOS, how to train soldiers, handle pay and personal problems, how to maintain equipment and be able to deploy to some of the worst places in the repeatedly.
Bring back the draft so that everybody gets a taste of the military life and gets to sacrifice like the young men and women who volunteer today.
Yes I have noticed a lot of changes at my commissary and not for the good!! I was there this past Friday and they have stopped carrying several items and brands. Often it was the most economically priced items!! The commissary is 30-45 min away, I’m thinking if this is the norm than shopping local is better. Just another benefit being slowly taken away, so much for taking care of those who have/are serving their country.
I have been shopping in the civilian grocery stores for quite some time as I can beat the commissary’s prices if I am careful. We eat whatever meat is on sale that week! About the only things that are cheaper are spices and cat food and there’s a market near me that sells spices in bulk so I can buy as much or as little as I need. Ground beef is outrageous! And the Navy commissary near me is more expensive (and always has been) than the Air Force Commissary that I use. Benefits are disappearing at quite a clip!
As a retiree I shop several times a week at the Fort Knox Commissary. I haven’t noticed any negative changes. Everything there is great. The prices are reasonable and the quality of meat items and produce is the best. The people there are cheerful and friendly. The prices are competitive and I always use the self checkout so I know I am saving money. Hope we can continue to use this wonderful benefit.
I have been saying for several years that the commissary is not what it’s cracked up to be. The old days are gone when it comes to bread,milk and tobacco products. You do much better on the local market for the majority of your purchase and don’t get me started on prices at the deli. I don’t understand why DECCA doesn’t get the prices from the manufacturers that the local stores get. American Beauty pasta ,3 packs for a dollar,when was it ever that price in the commissary?
I read all the questions and comments from other commissaries users..I also ask the question is there still a 5% surcharge..I haven’t been to the commissary in a long while because I live about 75 miles one way and I am wondering if it would be worth it, me and my husband are on a fixed income like most of the people that uses the commissary so we have to be careful
anyway if the prices have gone up and the surcharge is still in effect I may not be shopping there…..thank you