I guess I am somewhere in the middle on this. I am definitely a frugal soul; I clip coupons, buy generic aspirin and the like, shop for sales at the grocery, stock up when it’s on sale, buy as much as possible from “everything $1” stores, and frequent yard/garage sales (cheaper than auctions any day). However, I do buy some food items only in certain brands because for some things there IS a major difference. Store brand cotton balls are not significantly different from Johnson & Johnson. Store brand American cheese slices are very significantly different from Land 'O Lakes American cheese. The cost is higher but it is worth it to me, because the one is a thoroughly enjoyable product while the other is a colored plastic substitute. My bottom line isn’t ONLY what does it cost, but am I getting the best deal I can while sticking to things that I know will be used and enjoyed. That said, I thought I would comment about the “store brand same as national brand” idea.
For some products, this is true. I work for a major foods manufacturer, and in addition to our own well-known national brands, we used to pack the same product for a variety of stores and chains (called “private label business” in our industry) under their own brand or generic name. Our brand name product is made with a certain standard of ingredient. Store brand product might be made with the same ingredients. Depending on the week’s operations at the factory, it might also be made out of the leftover/damaged product that was made previously, now ground up and put back into the hopper to run through the line a second time. Notice that I’m not saying there’s anything unsanitary or crooked about this; the regrind product was made with exactly the same methods of sanitation as branded product, and it was identified in its specs somewhere as “xx% regrind”, sold only to customers for whom that was an acceptable standard. However, that end product was somewhat inferior to the branded product, in the sense of less consistent performance (since the % of regrind varied) and poorer overall quality (more likely to break into pieces, etc, due in part to the double processing). My mother, who was a lunchroom lady for many years, commented once about the inconsistency of product they got through the commodities program: that one time it cooked up one way and the next week the exact same cooking process produced something of completely different texture and flavor - this was an instance of what was obviously regrind product coming in (institutional cooking is one of the biggest markets for “seconds” product, since the expections are not as rigorous and particular as for, say, a white-tablecloth restaruant). I reiterate that I’m NOT implying that generics or store brands are made of factory floor sweepings or sawdust, and in some cases they really are the identical product with a different label. But in some instances, the difference between generic/store brand and regular branded is very real, not just in your head, and not just in the commercials. Knowing this, the decision is simply whether the difference is perceptible and significant to you, and if so, whether it is worth the price difference. For some products, I find that it is.
Just my .02.
Oh, by the way, in addition to suggestions others have posted, I’d like to mention an often-overlooked food outlet. If you live in a decent-sized city, there is probably a foodservice company that is open to the walk-in public. (Foodservice suppliers normally sell to restaurants, hospital cafeterias, caterers, etc., and deliver it on trucks.) In our town it is Gordon Foodservice - look under foods wholesalers in the yellow pages. They are an excellent source for bulk items, they have no membership fees or requirements, and they are often cheaper than the warehouse clubs. I buy eggs there in cartons of 2 and a half dozen for $1.55 - about the price of 1 and a half dozen at the retail store. Black peppercorns are about four dollars for a little tin at the grocery; at the foodservice store, a two pound cannister costs less than $6. They have most of the same foods as the warehouse stores, including milk and frozen foods, but I find they are usually cheaper, plus the lack of membership fees is a savings. They carry only food and food-related items (paper plates, plastic utinsels, pans, and the like), so you can’t buy big cases of toilet paper or laundry soap there. But I highly recommend you check it out for your food shopping needs.