Learn how knowing the unit price can help you save money.
If you just read this title, you must be confused - how can you spend less by paying more? The answer is per unit pricing.
Per unit pricing tells you how much you're paying per ounce, per pound, or per item. Paying attention to per unit pricing can help you figure out which product is the best deal.
For example, if you're shopping for toilet paper, you might see two different brands. One costs for rolls, while the other costs for rolls. At first glance, it appears that the first option is the best deal. But if you compare per unit pricing, you'll see that the second option is actually cheaper: the first option costs per roll per roll
In conclusion, even though we paid more for the bigger pack of toilet paper, we actually spent less for each roll.
Per unit pricing
While it may seem that you are going to have to be walking around the store with a calculator in order to get the best deal, you may be surprised that most stores have already done the math for you.
Look at the price label below:
Per unit pricing can be especially helpful when you're trying to compare different sizes of the same product. See if you can spot the best deal between these options:
Per unit pricing isn’t always present on shelf tags, but it’s worth keeping an eye out for. Even if it is not available, you can easily calculate the per unit cost yourself. This is a valuable skill to help you get the best deal at the grocery store, and keep more money in your pocket.
Want to join the conversation?
- One thing to keep in mind when buying the larger portioned container is that even if it's less expensive per unit, you have to be careful not to consume more just because you have more. For example, if I have a gallon of milk, I'm likely to drink more than if I have a quart of milk. So make sure your usage is consistent, otherwise you won't save anything by going for the lower unit price.(38 votes)
- I use this strategy a lot, but you also have to make sure that if the better deal is a larger quantity that you will actually use all of the product, have space for it, etc. Doesn't make sense to buy a gallon of milk because it's cheaper per ounce if you don't use it all and it ends up going bad before you've used it all. Everybody has a different situation, so just be aware that there is never 1 correct way to do things when it comes to money.(23 votes)
- I might be overcautious but should it be a good idea to calculate the unit price even if it is listed? I know generally buying in bulk will be cheaper per unit but just in case.(11 votes)
- It is never a bad idea to double check if the unit price yourself. When it comes to spending, being overcautious is a good thing.(12 votes)
- Should a 13-year-old learn this because it sounds good to learn? I kinda want to learn this stuff(9 votes)
- One thing to keep in mind when buying the larger portioned container is that even if it's less expensive per unit, you have to be careful not to consume more just because you have more(11 votes)
- "and keep more money in your pocket".
How will I keep more money yet I pay for more ounces, feet ect?(5 votes)
- You make a good point. The article teaches an important concept. The wording is in need of adjustment. It might be better stated if it said something like, "over a year's time, after several purchases, you'll be dollars and cents ahead of where you would have been by purchasing in small amounts."(8 votes)
- we need to consider quality too(6 votes)
- This is the most important aspect of all. We must be careful not to equate higher price with higher quality. We need to do our research.(5 votes)
- As a 13 year old, am I supposed to learn this? Because I love this and would like to learn more of this!(4 votes)
- Learn it now. Start to use it soon. Learn, also, the rest of the stuff in the Financial Literacy course.(6 votes)
- how can i know if some of the numbers get very confusing while buying(1 vote)
- I had this happen the other day. I was comparing items, let's say jars of honey. One jar was $2.00 for 20 oz. The unit price stated $0.10 per ounce. But the other jars unit price said 2.20 each. (I don't know why they would do that, but they did.) I did the math $2.20/20oz=$0.11 per ounce, and I was able to compare them that way.
Another way it can get confusing is if there are differences in unit of measure like per Gallon vs per Ounce. In that instance you would have to know that one gallon has 128 ounces. In this example if a 20 ounce jar of honey is $2.20 and a Gallon Jar was $14.08, we already know the 20 ounce jar is $0.10 per ounce. The Gallon Jar would be (1 gallon=128 ounces) $14.08/128 ounces=$0.11 per ounce. Then compare just like before.
Remember that you cannot convert volume to weight. So make sure you understand if it is ounces by volume or ounces by weight. In general, ounces by volume is used for liquids and ounces by weight is used for dry goods. I hope this helps.(10 votes)