Plus, intel on how TJ’s determines its prices.

There was quite a fuss a few months back when Trader Joe’s raised the price of its bananas for the first time in more than 20 years. The yellow fruits, which previously cost 19 cents each, will now set you back 23 cents a piece. Given the news-making price jump, it’s no surprise that the latest episode of the Inside Trader Joe's podcast delves into how Trader Joe’s sets its prices. During the episode, TJ's employees Matt Sloan, vice president of marketing, and Tara Miller, marketing director, explained how prices are determined, and shared a few items that are now less expensive than they previously were, as well as some products that currently costs more. 

Ready to learn more about the prices at your neighborhood Trader Joe’s? Keep reading for more intel!

Related: 6 Trader Joe’s Products That Are Even Better in the Air Fryer, Per Employees

How Does Trader Joe’s Set Its Prices?

One of the key reasons customers love TJ’s is because of the reasonable prices. So, how does the company set prices for the thousands of items it sells? According to Sloan, this is, in part, how Trader Joe’s sets itself apart from other grocery stores. “[Trader Joe’s doesn’t] use a set markup or percentage that we apply to everything we sell,” he explained on the podcast. “That's what's known in the industry as a cost plus pricing model, where regardless of the cost and regardless of the competitive landscape, you just add a fixed percentage, and that's how you price it out.”

Instead, Trader Joe’s makes pricing decisions that deliver value to shoppers. “We lead with our customers in mind,” Sloan added. “At the end of the day, we [also] have to pay our bills and pay our folks working in stores, so we need to make a fair markup that's our profit on it. That can really vary product by product, or even throughout time over the course of the year.”

Additionally, when making the decision to change the price of any product, the formula that’s followed is actually pretty simple. “Cost is what we pay our source, and price is what we charge our customers,” Sloan shared. “At the risk of oversimplifying things, our prices change when our costs change.”

In a somewhat surprising twist, the Trader Joe’s Powers That Be are happier when they can lower prices instead of raising them. “We are very, very reluctant to raise our retail [prices]. That's, like, the decision of last resort,” noted a TJ’s employee named Chris, who is a senior category manager at the grocery store chain. “When costs are going down, we don’t wait. We lower the retails the second we find out the cost is going down.”

Trader Joe’s Products That Are More Expensive

Now that we know how Trader Joe’s sets its prices, it’s no surprise that the cost of various items can fluctuate from year to year. Here are the TJ’s products that have recently become more expensive:

Imported Olive Oil Packed in Italy

According to Chris olive oil prices have risen at Trader Joe’s (and elsewhere) due to the economic principle of supply and demand. “The laws of supply and demand seem to have kicked in, and demand is there, but the supply has been a bit challenged,” he explained. “Olives grow in places that have had a little bit less rainfall and a little bit more heat. Spain's the biggest grower of olives and they've had a couple bad harvests in a row.”

Related: 20 Trader Joe's Shopping Mistakes You Should Avoid at All Costs

Since a little more than half of the world's supply of olive oil comes from Spain, the recent bad harvests have meant that olive oil prices have gone up, both at Trader Joe’s and at other grocery stores. One item that’s been impacted is the Imported Olive Oil Packed in Italy, which sources olives from Spain and other countries.

However, since Trader Joe’s strives to offer shoppers an amazing value, it’s highly likely that olive oil sold at TJ’s will still be less expensive than olive oil sold at other supermarkets. “We're gonna always offer a great value on our olive oil relative to everybody else, and the best value we can,” Chris shared.

Bananas

While the change in the price of bananas at Trader Joe’s wasn’t mentioned on the podcast, we already noted that the price recently rose from 19 cents to 23 cents a piece. Though that may not seem like much, it represents an increase of roughly 21 percent. It has been speculated that Trader Joe’s raised the price of its bananas for the first time in more than 20 years because higher temperatures brought on by climate change may increase the chances of lower banana yields, thus meaning the price per banana will rise.

Trader Joe’s Products That Are Less Expensive

While the prices of olive oil and bananas have gone up, there are other TJ’s items that currently cost less than they once did. As you will see, the price of almonds in general has gone down, and this impacts several similar Trader Joe’s buys. “Right now, the big talk is almonds, because of the California crop,” shared Cara, the category manager for all of the snacks, nuts, and dried fruit at Trader Joe’s. “It's been super for the last couple of years. We had plenty of rain.”

Unsalted Dry Toasted Slivered Almonds

One of the TJ’s items that is currently less expensive than it once was is the chain’s Unsalted Dry Toasted Slivered Almonds. These healthy almonds come from family-owned farms in California, and are dry roasted, which gives them extra crunchiness. “[The Unsalted Dry Toasted Slivered Almonds] were originally $3.99 for eight ounces, and now we're $2.99,” Cara shared. “That's a really great value.”

Unsalted Dry Toasted Sliced Almonds

The sliced almonds, which are slightly larger than the slivered ones, also dropped from $3.99 for eight ounces to $2.99. Use these crunchy almonds in a yogurt parfait, as a topping for a bowl of oatmeal, or in baked goods such as cookies or muffins.

Related: 10 Underrated Trader Joe's Items to Add to Your Grocery List ASAP

Dry Roasted & Salted Almonds

As Cara noted, TJ’s Dry Roasted & Salted Almonds once cost $6.99, and will currently set you back just $5.99. While this is an impressive discount (as is the case with all of the almond items) Sloan pointed out that the prices will likely fluctuate again in the future. “[These prices are] likely not gonna stay that way forever, but I do feel very confident in saying that what will, again, remain constant, is Trader Joe's work to have an amazing price for outstanding quality.”

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