David Koch Reveals the Supermarket Eye-Level Trap Costing You $3,400 a Year

Australian households are being squeezed from every direction — rising fuel prices, soaring insurance premiums, climbing power bills and the lingering threat of another interest rate rise — but financial commentator David Koch says one simple change at the supermarket could put thousands of dollars back in your pocket each year.

Speaking to 4BC Brisbane, Koch — now economic director at comparison platform Compare the Market — highlighted a habit most shoppers fall into without realising: buying at eye level.

"Eye level is buy level," Koch said. "Brand names pay to be positioned right there in the middle of the aisle. But if you look above or below them, you'll often find home-brand products made by exactly the same manufacturer — at dramatically lower prices."

Research conducted by Compare the Market analysed 20 of the most commonly purchased supermarket products and found that choosing home brands over name brands results in a 46 per cent price difference. On a $200 weekly shop, that translates to roughly $64 in savings — which compounds to around $3,400 over a full year.

"That's a couple of economy flights to London," Koch said. "Just by changing your habits and looking at a different shelf."

The advice comes at a critical time for household budgets. Petrol prices in Sydney have climbed back above $2 per litre, with Brisbane expected to follow. Koch said the fuel spike effectively delivers the same financial hit as an interest rate increase — piling pressure onto households already stretched by mortgage repayments, rent and essential costs.

Koch believes the Reserve Bank will hold rates steady at its August 11 meeting, but warns that a number of economists are tipping at least one more rise before the end of the year. Combined with elevated fuel costs, that scenario would amount to the equivalent of two rate hikes hitting household budgets in quick succession.

"Australian households are being smashed by things beyond their control," Koch said. "The Reserve Bank can't say people are spending recklessly — inflation is being driven by geopolitical instability and by state and federal government spending that's still sitting at COVID-era highs. Households are footing that bill."

Wage growth has offered little relief. Koch noted that meaningful pay increases have been largely confined to the public sector, leaving private-sector workers and small business owners struggling to keep pace with rising costs. He said many employers are now making difficult calls about whether to replace departing staff, with consumer caution rippling through virtually every industry.

On insurance, Koch urged Australians not to simply accept renewal notices at face value. Premiums for car, home and health insurance have all risen sharply, but the gap in pricing between providers remains significant. He said staying in private health insurance is still worthwhile — not just for personal benefit but to ease pressure on the public system — however, reviewing your level of cover and comparing policies is essential to avoid paying for extras you never use.

Koch's broader message was consistent with the platform he built over decades on Sunrise: comparison and active decision-making are the most powerful tools available to ordinary Australians navigating a punishing financial environment. "The savings are huge if you put the effort in," he said. "You just have to be willing to look."