| How to Calculate and Compare Unit Prices at the Store Aug 12th 2012, 03:00 Companies are always creating eye-catching container designs and bigger packaging to persuade us to purchase their products. When we enter stores to shop for food, toilet paper, pet food, and other products, is it an optical illusion or the actual reality deal if we're getting the most out of our money? During special occasions, such as a barbecue or Halloween, our eyes might glance towards the bigger product and ignore everything else. There is a way to figure out if you really need that huge family size cereal box or get a better deal with more smaller boxes. - Know what unit price is. The unit price of a product is basically what the cost of each pound, ounce or gram, square foot or meter, etc., of the product is. In some grocery stores and supermarkets, the unit prices are shown with the total price but this isn't always available, so it's important to know how to work this out for yourself.
- Know the calculation formula of unit prices. The math figure is Cost of Item / Quantity = Unit Price. A simple example is given below:
- 18 oz of peanut butter is $2.79
- $2.79 divided by 18 = $0.16 per ounce
- 20 ball point pen package is $3.00
- $3.00 divided by 20 = $0.15 per pen.
- Compare unit prices from different brands and sizes to know if you're getting the most out of your money. For example:
- 24 oz of vegetable oil from Store A is $2.49, which is $0.10 per ounce
- 32 oz of vegetable oil from Store B is $2.99, which is $0.09 per ounce
- In this example, the best bargain is from Store B. You're paying $0.50 more overall, but you're also paying less per ounce.
- See how coupons can really affect final prices. At times when you use coupons in your transactions, the unit prices really change and can affect what you choose from the shelves. Let's use the example from above with a "Save $0.50 off one 24 ounce or larger vegetable oil" coupon, but Store A doubles all coupons up to $0.99.
- 24 oz of vegetable oil from Store A is $2.49, now $1.49 with doubled coupon
- 32 oz of vegetable oil from Store B is $2.99, now $2.49 with coupon
- Store A's current unit price is $0.06, while Store B's unit price is $0.07.
- Because of Store A's doubled coupon price, the unit price changed and is now lower than Store B, thus getting 24 oz of vegetable oil is a better deal than 32 oz.
- Experiment by comparing store brands to manufacturer brands. You can also calculate with other types of units, for example 4 versus 8 toilet paper rolls or the different amount of loads/ounces of laundry detergent.
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