People complain about grocery prices but won't shop at Aldi. Why? Because we've been trained to think choice equals value.
Aldi figured out the opposite is true. Fewer SKUs, house brands, no-frills stores, ultra-efficient supply chain. Result: same quality food for 30-40% less.
Most grocery stores carry 40,000+ items. Aldi carries ~1,400. They don't stock 47 types of pasta sauce. They stock 3, all private label, all solid.
The psychology is fascinating. We think we want infinite options, but infinite options cost money — shelf space, inventory management, logistics complexity, marketing spend. You pay for all of it.
Aldi strips that out. No fancy displays. Bring your own bags. Quarter deposit for carts. Cashiers sit down. Boxes double as shelf displays. Every detail is optimized for cost.
And yet people still drive past Aldi to pay more at the big chains because "I like having choices" or "I'm loyal to my brands."
This is the same mental trap in investing. People want 50 funds in their 401k when 3 would do. They want complexity, customization, bells and whistles. Then they wonder why fees eat their returns.
Simplicity is underrated. In groceries. In portfolios. In life.
If you're stressed about inflation but won't change your habits, you're not serious about the problem.
Aldi figured out the opposite is true. Fewer SKUs, house brands, no-frills stores, ultra-efficient supply chain. Result: same quality food for 30-40% less.
Most grocery stores carry 40,000+ items. Aldi carries ~1,400. They don't stock 47 types of pasta sauce. They stock 3, all private label, all solid.
The psychology is fascinating. We think we want infinite options, but infinite options cost money — shelf space, inventory management, logistics complexity, marketing spend. You pay for all of it.
Aldi strips that out. No fancy displays. Bring your own bags. Quarter deposit for carts. Cashiers sit down. Boxes double as shelf displays. Every detail is optimized for cost.
And yet people still drive past Aldi to pay more at the big chains because "I like having choices" or "I'm loyal to my brands."
This is the same mental trap in investing. People want 50 funds in their 401k when 3 would do. They want complexity, customization, bells and whistles. Then they wonder why fees eat their returns.
Simplicity is underrated. In groceries. In portfolios. In life.
If you're stressed about inflation but won't change your habits, you're not serious about the problem.