Sometimes foods packed in the "giant" or "family" size may seem like the best buy. You may think that buying one large container will not cost as much as two or three smaller packages. But larger containers do not always end up costing you less than smaller ones. It is important to look at the cost per unit and compare this cost. The "unit price" tells you the cost per pound, quart, or other unit of weight or volume of a food package. It is usually posted on the shelf below the food. The shelf tag shows the total price (item price) and price per unit (unit price) for the food item.
You can save money when you compare the cost of the same food in different sized containers or different brands.
For example, if you want to buy frozen orange juice you may find a 6-ounce can that cost $.64. The unit price for this small can is $3.42 per quart. A 12-ounce can of frozen orange juice in another brand may cost $.89. The unit price for the larger container of juice is listed as $2.38 per quart. Here, the larger container is cheaper per quart.
Foods that cost less per unit are not always the better buy. The big, economy size is not a good buy if you cannot store it properly. If you end up with leftovers that spoil or are thrown out, buying the larger size is not a good idea.
For more information, check out the University of New Hampshire's publication, Stretching Your Food Dollar.
Unit pricing can help you decide what brand to buy. Store brands and little known brands often cost less than well-known national brands. The way the lower-priced brands look may be the only difference. Be sure to check the Nutrition Facts panel on the food label to see if the nutrients are the same. Sometimes these foods may vary in size, color, or texture more than the national brands. If you want a perfect peach half, you may want to pay the price of a national brand. If you want sliced peaches to serve your child or as a quick snack, it may not matter if each slice is the same. You can save money when you compare the unit price of each of the canned peaches before you make your decision.
Compare unit prices to find the best buy
- Unit prices tell you the cost of one unit, such as an ounce.
- Find unit price labels on the shelf edge right under the package.
- Use unit prices to compare costs of different brands of the same food.
- Unit pricing makes it easy to compare the prices of different sizes of the same brand.
- Use unit prices to compare different forms (such as fresh, canned, or frozen) of the same food.
- Choose the food that has the lowest price per unit to save money.
- Check unit price labels often because prices change.
The biggest package isn’t always the most cost-effective. Stores know that consumers want to buy in bulk, and so they mix it up: sometimes the bulk item is cheaper, sometimes it’s more expensive. The only way to make sure is by unit pricing. Some stores list the unit price on the label below the selling price for that item. This makes it easy for us. If your store doesn’t provide the unit price, the only way you can be sure is to take a calculator.
Example -- Notice in the example below that the unit price for both cans of soup is the same, therefore the shopper is not saving by buying the larger size.
|
Item price |
Unit price |
| Mushroom soup - 16 oz. |
$1.39 |
$.09 |
| Mushroom soup - 19 oz. |
$1.69 |
$.09 |
Figure the unit price. To figure the unit price you take the number of units into the price (unit/price). First you have to figure out what the unit is. It could be ounces, pounds, number of items, like number of paper napkins or square footage such as in toilet tissue or paper towels.
Some states require stores to show unit prices. Look for them on the shelf in front of the product, above the product, or to the side of the product. If unit pricing is not available, take a calculator to the store or use the calculator on your cell phone to do the simple math:
Unit price = package price divided by number of units
Spend Smart Strategy - Use unit pricing to find the best buy
Unit pricing helps you:
- Find the lowest cost package size. Biggest is not always the better buy.
- Find the brand that costs less. Generic or store brands are often (but not always) lower in price.
- Compare prices for different product forms; such as, fresh, frozen, and canned items, as well as the cost of individual pieces of prepackaged food like bagels, muffins, or rolls.