How to save money with grocery unit pricing

This is easy now because all large supermarkets must provide the unit price of packaged grocery items such as cartons of breakfast cereals, bottles of milk, and even rolls of toilet paper.

The unit price is shown near the selling price on shelf edge labels and other price signs

Retailers have always had to show the unit price for products sold from bulk or in random weigh pre-packs, for example fresh meat, cheese, and fruit and vegetables.  And, consumers have always made great use of these unit prices to work out the best value for money, after also taking into account quality and other differences.

So now consumers can do the same with pre-packaged grocery products by using the unit prices to compare the value for money of:

  • different package sizes
  • different brands
  • packaged and unpackaged products
  • substitutes.

Smart shoppers willing to change brand and package size can use unit prices to make big savings on their grocery bills.  For example, recently I found I could reduce by almost 50 percent the cost of a basket of 27 common packaged items by buying products with the lowest unit price rather than buying only the medium size package of a national brand.

Big savings are also often possible by buying fresh/cooked meat, fish, etc loose from bulk rather than pre-packed.

Of course, when choosing between products shoppers can, and should, also take account of quality, ingredients, quantity, type of packaging, country of origin, etc. as well as the unit prices.

To get the best value for money consumers need know and look at unit prices regularly because unit prices vary greatly between products, shops, and over time.  And, just because an item is; “on special”, a generic brand, in the largest package size, or unpackaged, does not mean it will be the lowest unit price.

I find it easiest to use unit prices by thinking of packaged products I buy regularly only in terms of the unit price not the selling price or the package size.  For example, I know that normally I pay only $0.38 per 100g for corn flakes, $5.98 per kg for cheese slices, and $0.18 per 100 sheets for 2 ply toilet paper.  This makes it very easy for me to check if there is better value for money on offer anywhere.

Unfortunately, in some supermarkets many unit prices are not easy enough to notice and read – especially for many seniors and others with sight deficiencies.   And, sometimes more than one unit of measure is used within a product type, or the wrong unit of measure is used for a product type, or unit prices are not provided for some items.

To complain about any aspect of unit pricing, or obtain more information, call the ACCC’s Unit Pricing Hotline 1300 746 245.

Ian Jarratt is a volunteer with the Queensland Consumers Association.  He won the inaugural CHOICE Consumer Action Award in 2010 for his advocacy work which resulted in the compulsory provision of grocery unit pricing by large supermarkets. He can be contacted at unitpricing@australiamail.com

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