The simplest way to save on groceries is to shop by unit price
This is the first in a continuing series on ‘the basics’. Here we introduce unit pricing to save on groceries with no fuss.
Part 1:Â How to Use Unit Pricing to Save a Ton on Groceries (no coupons required)
Part 2: How to Save $3,000/yr on Groceries – Unit Pricing at Scale
Part 3:Â How Packaging Designed for Convenience Really Adds Up
Bottom Line Up Front
You can immediately start trimming your grocery bill by a significant amount, without denying yourself anything on your list, by making one simple change to your shopping.
Unit pricing. Those little numbers on the price tag that no one ever bothered explaining (to me at least) are one of the easiest ways to slash your bill.
Generally speaking, any item you’re looking at in a US grocery store will be available in a variety of sizes. From individually packed single-serves to gigantic “family value pack” sizes. It may seem like the price per item would be the same, after all…2 cookies are 2 cookies whether they come in a 20-pack or a 100-pack. You might even think buying the biggest size available is going to get you the best price (and it sometimes/often will!).
The Numbers, via Imaginary Cookies
You might be surprised to learn that the cost “per cookie” can vary dramatically depending on the package you choose.
Let’s say you want cookies (as I always do), and you have 4 different options:
“Lunchbox Singles” – a box of 20 cookies, wrapped in little packs of 2
“Normal” – a box of 35 cookies
“Family Size” – a box of 50 cookies
“Value Pack!” – 2 boxes of 30 cookies each (and it’s conspicuously larger than the other options)
# of Cookies | Price | Unit Price (‘per cookie’) | “Rank” | |
Lunchbox | 20 | $2.99 | $0.1495 | 3 |
Normal | 35 | $3.99 | $0.114 | 2 |
Family Size | 50 | $5.49 | $0.1098 | 1 |
Value Pack | 60 | $6.99 | $0.1165 | 4 |
While it’s usually a safe bet that anything packaged for ‘convenience’ (think individually-wrapped anything; single-serve bottled soda vs 2-liter) is going to cost more, there’s almost always a deal to be had by ignoring the packaging and the cost altogether and just buying based on unit price. You want the cookies, you’re getting the cookies, and you don’t care what kind of package you’re taking them out of…ignore everything else and pick the lowest unit price!
Save on Groceries in the Real World
So that’s a great theoretical example, but it’s way too convenient that these arbitrary numbers I place on imaginary cookies just happen to support my position. So let’s look at a real world example!
Say you want strawberry jam. You get to the aisle and see there are no fewer than 8 different strawberry jam-looking bottles from just ONE brand. Which do you buy? Let’s say you’re very particular and you will *only* eat Smucker’s Strawberry Preserves.
Here we’ve got the sizes and unit prices blocked out, but if you’re walking up you’ll see the $3.99 jar is significantly bigger (though it’s kind of hard to tell in the photos). I’m honestly surprised they don’t have a big “50% MORE!” label on it. Without another thought, you may assume the bigger jar is the better deal. But take a closer look:
That jar that’s 50% bigger is slightly more expensive per ounce.
It just so happens that at the time I looked, these prices were even more radically different because the little jar was on sale while the big one was still full price:
The Takeaway
That means just blindly following unit price and buying the little jar is going to save you 30% “pound for pound” – on the exact same product!
They play so many games with package sizing, having one variant on sale, buy 2 get 1 free, etc., that it can make your head spin (and you can bet that’s intentional!).
In the next installment, we’ll see how this idea scales to save on groceries (plural) instead of conveniently-priced example jar of jelly. What if we compared unit prices on every item in our cart and just bought the cheapest version of each? No store brand, no coupons, no math (except comparing two unit prices).
If you’re here to berate me for explaining something so basic…instead tell me how and where you learned this!