Two big changes will be coming to commissaries around the world thanks to the 2017 National Defense Authorization Act (NDAA).
Currently the Defense Commissary Agency (DeCA) receives $1.3 billion in taxpayer funding annually. That funding covers the costs of operating the commissaries. Patrons are able to purchase goods at cost plus 5 percent. The 5 percent surcharge covers construction, equipment and maintenance to improve facilities.
Now the government wants commissaries to be more self-sufficient and not rely on such a huge amount of taxpayer money.
The 2017 NDAA, signed into law under the Obama administration, allows DeCA to start working on this in 2 ways. The first is introducing variable pricing and the second is creating a store brand or private label products. Variable pricing will be the first phase of this move and will start in 10 commissaries.
What is variable pricing?
Instead of the prices of goods at commissaries simply being the cost DeCA gets items at, prices now will be determined through multiple factors. This includes the cost of obtaining the item and the market price to name a few.
Commercial grocery stores use this same strategy to determine their product price points. Prices will shift with the market, but overall savings at the commissary will remain the same.
Under the new pricing model, the prices of products sold in commissaries will be based on a specific percent of savings that the same item would be sold for in commercial grocery stores in that particular region. That means that prices will no longer be uniform across commissaries and will instead vary by region and country
Don’t panic. That does not mean prices are about to skyrocket.
Each region has a specific saving percentage required under DeCA’s regional savings index. Overall, commissaries in the United States will have a 20.2% savings over commercial grocery stores. Prices vary even more overseas, so the total savings globally is set at 23.7%.
Depending on where you live, the cost of living can be higher or lower. To keep shoppers happy and enjoying the commissary benefit, different regions will see different prices, but all patrons will see a savings overall.
There are 36 commissaries in the New England area that will see a savings of 21.4% over commercial grocery stores. The 30 commissaries in the South Atlantic area will save 19.9% while the 33 commissaries in the South Central area will save 18.1%. The South Pacific area is slated for a 20.9% savings and the Mountain region will have a 17.6% savings. The North Central area only has 18 commissaries but they will all have a 20.2% savings while the 9 commissaries in Alaska and Hawaii will see 32.6% savings. Commissaries abroad will have a fantastic 44.2% savings over commercial grocery stores.
How did DeCA come up with these percentage savings?
Each market was evaluated independently and the prices were compared to commercial grocery stores in each area. Local and state food tax was taken into consideration as well as the 5 percent commissary surcharge.
The cost of living index was used to determine prices abroad. Each month all of this data will be recalculated to ensure prices stay on schedule with the appropriate savings over local grocery stores. As many as 1,400 items at each commissary will be compared to commercial grocery stores each month to ensure accuracy.
The list of the first 10 commissaries to use variable pricing has not been released as of publishing time. If we didn’t tell you variable pricing was coming, would you notice the difference?
Next time you shop at the commissary have a look around at prices and see if you notice a difference. Perhaps your commissary will be one of the first 10 to try out variable pricing.
I could write an all negative essay on the subject but I’ll limit my comment to one way DeCA could save money in favor of the military. I was active duty, left the USAF and married an active duty man. I spent a total of 22 years stationed overseas! I think it’s wonderful that overseas military will see a 44.2% savings in the commissary. What I don’t like is all CIVILIAN U.S. Embassy employees, state department personnel, diplomats and other Federal civilian employees working overseas HAVE THE SAME MILITARY PRIVILEGES as active duty military!!!! I’ve worked in two embassies so I know of what I write. The average income for these civilians is around $150,ooo.oo a year, PLUS free housing and utilities, and a tax free cost of living allowance! Compare that with the $36,000 a year base pay for an E-5! Knowing what it’s like trying to live without Oreo cookies and Captain Crunch cereal, I have no problem with these civilians being allowed to use the commissary. However, I have serious heartburn with them getting any discount!!! With modern technology I’m sure it wouldn’t be that difficult to have two separate prices per bar code depending on the ID that is presented. Our officials in Washington are quick to talk about equality so I’m sure they would be eager to rectify the inequality of this situation.
I hate having the price of anything being based on the government’s figures that the cost of living has not risen considerably in the last few years. I wish they would come to my home and look at my bills which have gone up, up and up for cable, telephone, insurance, both auto and home, etc. while social security and pensions have not increased due the government’s calculations that we did not need a raise in benefits. Please don’t raise our commissary prices, as that is about the only place I realize any savings at the present time.
Just shopped NAS JAX commisaryn. Noticed omission of several brands and varieties I was looking for as well as overall price rise. I can do better on many items shopping generics,sale prices and BOGOS plus digital coupons..The commisary always takes a long time,plus is out of my way to shop. Therefore will be shopping even less. It is not worth my while unless I am meat shopping, and even there I noticed increased prices.
I drive 72 miles one way to shop. Last week I noticed about 25% of regular items that I buy every 30 to 45 days had increased from 10% to about 33% from last time purchased. I also shop SAM’s, Wal-Mart and Sprouts every week or two that’s closer to our small rural town. Many times I buy big ticket items at BX and shop the Commissary just to support.. One day last week, I dropped about $1,000 dollars for new eye glasses, BX and Commissary purchases. Let me add, Sprout’s produce is much fresher and most always less than Commissary and I pay only about 3% more in tax over the Commissary surcharge and with bagging tips, I usually pay way more that the sales taxes are!! Wal-Mart, Crest Grocery and Sam’s sells a great number of items about same as BX and the Commissary or even much LESS! The small savings for groceries, plus Tricare, retirement benefit and our military family was a huge reason to continue support of a 24 year military service, still ongoing after the past 50 years! Maybe we need President Trump to help DECA negotiate better prices with manufacturers, airlines and trucking companies.!
We use the commissary at Ft Bliss Texas. What region are we in and what is the savings percentage?
Right now inIndianapolis, IN the prices are high. BUT, the majority of us want brand names because private labels do not all have quality/good tasting. We like the choice of German food and Hawaiian Kona coffee, all which sell out. You never surveyed our market area demand. We recently got back our high quality deli foods and the sales are back up again, food moving quickly.
With Obama gone (he totally disliked the military), can’t you renegotiate on behalf of the military families? Obama didn’t care about us or our paychecks. Please do something to support the military families. Don’t accept Obama’s laws.
Good “new ideas” for the government seem to be “bad ideas” for the military families. There are always high powered studies to make the military life as it is in civilian life…No Breaks… Years ago fuel (gasoline) was less on post then off post. A study was done and a surcharge made it the same to keep the off-post stations happy. Now, lets make the commissary prices the same as off-post grocery stores.. Benefits for the military families are all but gone. One day there will be a study, that finds there’s no reasons to have government operated facilities and can cut all costs to completely eliminate the on base military facilities and save millions of dollars for the government, no mater at what costs it has on the military families. Ask the Old Timers of the Benefits that have been taken away over the years, to keep military families on the same playing field as the civilian families off-post. Change in pricing has to be an overall cost increase for the military families. Common sense will tell you, it’s not going to be a decrease in food costs at the commissary. Share a cost comparison chart before and after the new plan is in effect.
I think this is a great way to to go for all of us to save money and we all should understand that it Hawaii should have more because of the cost is so much there. I am not from there, BUT!!! I am from Ca. and now I Live in Florida. So I knew people from all over and we all should understand the cost of living. T.You
Our Service Members have more to worry about than mot civilians. They sure don’t need different prices at the Commissaries each time they change stations. Families need some routine things that don’t change from station to station. Spouses at home usually can’t get well regulated at a new station that has a higher economic status than the last duty station. Our Service Families will suffer with this. You can’t calculate out the needs of a military family. Mom and Dad calculate to the penny so that all in the family get to eat an equal share of what is available.. A transfer from Homestead AFB to Nellis AFB will take you from a reasonable economy to one that is out in the stratosphere somewhere. The benefit of price specific item throughout the system gives everyone a break when they must deal with the local area price index. Right now we have a system of normalcy everywhere. The changes suggested will only provide one more irritant that isn’t need by our Forces. Let all our Military see normal items at the same price and continue to have regional items that please everyone. Thank You, BearsHandler,
We already can get better savings at some of the retail markets than that of the commissary sometimes I think they don’t want use to do business there. It is awful that along with all the deployments and years of service families are still getting the shaft from places that say they are here for the soldiers and their families. All I see is the Px and Commissary are taken the soldiers and their families to the cleaners and never giving it a second thought. Then have the nerve to say they are here for us … We are not stupid people.
The comments are all very interesting, but in the end, the Commissary will do what it wants to; it always does; all comments, while interesting, mean nothing to them. And, I smell politics on this move.
Remember when the commissaries had “Thanks for shopping at Your Commissary” on the wall above the registers? Point: Have you ever tried to have ‘your commissary’ add an item to their shelves, special order something, even from an existing vendor, much less a new one? Ha! Jokes on you. Refer back to the statement, “the Commissary will do what it wants to; it always does.”
This is an extremely informative and useful article! My husband is winding down his career in the military and we were considering building a new home but were told it wouldn't be possible using a VA loan, this article gives me hope!.